The Planning Commission has started rating all the States based on six parameters to enable the States to improve the regulatory ecosystem for manufacturing, said Planning Commission Member Arun Maira on Thursday.
Addressing the Madras Chamber of Commerce and Industry (MCCI) members, he said the first report will be ready within the next three to four weeks. However they are planning to defer the release till the completion of election process. The rating will be done based on internationally established process called ‘Business Regulatory Impact Analysis (BRIA)’ for tuning up investment climate of the State as huge investments came from the private sector. The rating will be done annually based on issues such as availability of land, space, skilled labour and taxation issues, he said.
Mr. Maira said that they have entrusted the task to a consultancy firm to do the analysis. Even though the states might not agree with the outcome, the results would enable the latter to learn from the progressive states and adopt next best practices to move forward.
To avoid duplicity of ratings, Mr. Maira called for clubbing the ratings of Department of Industry Policy and Promotion, Micro, Small and Medium Enterprises with various trade bodies. “We would like to bring all the stakeholders on to a single platform to analyse the problems and solve it at the earliest,” he added. Earlier, he released a study on ‘Manufacturing in Tamil Nadu — a regulatory road map’ that was received by Sundaram Finance Managing Director T.T. Srinivasaraghavan.
The study calls for introducing a single business act; simplifying and modernising the Factories and Contract Labour Rules; and reducing human interface at check posts.
MCCI president T. Shivaraman said the manufacturing sector in the State can do much better if some simple regulatory changes were brought in.