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Tuesday, October 21, 2014

Soon, register a business in India in just one day

The Narendra Modi government, in a bid to make India a better place to do business, is working to cut down the time taken to register a business from 27 days to just one. Towards this end, it has readied a raft of measures, such as single registration for all labour laws, overhaul of tax systems, reduction in the number of permits required, easing up property registration and quick electricity connection, which are expected to make the country a friendlier investment destination.

Currently, India has the reputation of being a notoriously difficult place to do business. According to World Bank's "Ease of Doing Business" index, India ranks 134 out of 189 countries, behind China (No. 96) and neighbours Pakistan (No. 110) and Bangladesh (No. 130).

During the launch of the Make in India campaign, the prime minister had announced that his government would take steps to bring the country's ranking among the top 50. The government has made the Department of Industrial Policy and Promotion (DIPP) the nodal agency to push procedural reforms to make India a better place to do business.In turn, DIPP has set a time frame of 3-6 months for implementing the changes. It has asked all ministries to come on board and work to reform the regulatory structure and overhaul the investment climate. States are also being encouraged to join the Centre's efforts to improve the regulatory structure and cut down delays.

Among the focus areas is reforming the tax system. It has been suggested that the number of taxes be reduced and online payment of taxes allowed. Education and higher education cess, dividend and withholding taxes can be incorporated under corporation tax to simplify the process, officials said.The Minimum Alternate Tax (MAT) for developers of special economic zones (SEZs) and units in SEZs is proposed to be abolished.There is emphasis to expeditiously implement the Direct Tax Code and goods and service tax (GST).

"To achieve all this, the government, along with the states, will need to carry out radical measures on a war footing," said an official, who did not wish to be named.

The DIPP has set timelines for various reforms for ministries and departments. For example, it has been suggested that there should be no inspection for low-risk business and com puter-based selection for high-risk ones. There is also a proposal for a uniform policy and procedure for all states so as to enable the single-window clearance system, along with a combined application form with an institutional mechanism to provide various approvals.

The DIPP has cited examples from various countries such as Malaysia, New Zealand, Canada, Rwanda, Turkey and the UAE to ease up the processes and reduce delays. It has also been suggested that the requirement of minimum paid-up capital for starting a business should be done away with, as 90 countries have no such requirement. To remove hurdles in getting electricity for businesses, several measures have been identified which include removing the requirement of pollution control certificates for providing a connection.State electricity boards and the power ministry have been asked to simplify procedures to get an electricity connection.

Uddhav blinks, heads for Delhi to meet BJP top brass

Has Already Sent 2 Sena Leaders To Meet Rajnath`Matoshree Must Adapt To Changing Political Climate'
Shiv Sena seems to have blinked first in the impasse with BJP over government formation in the state. While it despatched two senior functionaries, Subhash Desai and Anil Desai, to Delhi on Tuesday to hold talks with home minister Rajnath Singh and BJP leader J P Nadda on the issue of support to a BJP-led government, Sena president Uddhav Thackeray himself is likely to go to the capital on Wednesday or Thursday . BJP sources confirmed Uddhav has been trying to get through to PM Modi. NCP's unconditional support to BJP has compelled Sena to give up its strident note, said Sena watchers.

However, it was not clear if Sena leaders will submit a formal proposal from Uddhav to Singh and Nadda, outlining the party's demand in return for support. BJP leader O P Mathur said his party and its allies, who have 123 seats, have garnered 15 seats more.

"We now have 137, even 138 seats," he told mediapersons.

BJP wants Sena to support the government from inside without any conditionalities.

Sena turned restive as it became clear that Singh and Nadda had put off their Mumbai visit again on Tuesday. That Sena has gone on the back foot is an indication that BJP played its cards well after the poll results were out on Sunday , political analysts said. "We had decided that under no circumstances will we go to Sena on bended knees to seek support. We want Sena to be with us in the new regime. However, Matoshree should stop acting pricey and adapt itself to the changing political climate in the state," said a key state BJP leader.

Meanwhile, nearly 35 of the 44 BJP MLAs from Vidarbha on Tuesday came out openly with their demand that Union minister Nitin Gadkari should be anointed as the state's chief minister.

The MLAs gathered at Gadkari's Nagpur residence in a veritable show of strength. Earlier, Gadkari was given a rousing reception by his supporters at the Nagpur airport.The Union minister arrived from New Delhi by a morning flight.

Talking to mediapersons, Gadkari reiterated that he didn't see himself in the race for the top post."I have stated several times that I am not keen on coming to Maharashtra as CM", he said.

Some in the state BJP think that Gadkari, with his blunt, no-nonsense style, would be a better choice as CM than the soft-spoken Devendra Fadnavis if the Sena is set to join the government. Gadkari has in the past given several rebuffs to Matoshree, and vice versa. However, the central BJP leadership is all set to anoint Fadnavis after Diwali.

BJP leader from Vidarbha Sud hir Mungantiwar has made it clear that he favours Gadkari as chief minister. "The final decision will, of course, be taken by the party's parliamentary board. However, Gadkari's decision to stay put in New Delhi is improper. He should come to Maharashtra as chief minister," said Mungantiwar, a Gadkari loyalist.

No threat to Rajnath Singh in city:

The Mumbai police on Tuesday T denied rumours that there was a threat to Union home minister Rajnath Singh in the city. Singh was expected to visit Mumbai on Monday to meet the newly elected BJP MLAs and decide on the leadership issue and government formation, but the trip was deferred to after Diwali.Following the announcement, rumours began circulating that the Union home ministry had received an input about a threat to Singh in Mumbai. The city police rubbished the claim. "There is no such input.Also, we have not received his itinerary," said an officer.


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