July 2 2022: CUTS Centre for Competition, Investment & Economic Regulation has undertaken a policy study on “Doing Business in Rajasthan” with the support of the CM Rajasthan Economic Transformation Advisory Council (CMRETAC).
Under the project, compliances applicable across major industries in the state of Rajasthan were assessed. CUTS zeroed on the globally recognised Regulatory Guillotine (RG) framework to design a framework for Rajasthan, which reviews compliances through a consultative mechanism to reverse the burden of proof. The suggested RG framework requires clearances to pass the tests of legality, necessity, and proportionality, upon which it should be retained, amended or abolished altogether. Depending on which requirement the compliance fails, an action as per the recommended test must be taken.
Following is the three-step test designed by CUTS to reduce the compliance burden in Rajasthan.
Legality Is the compliance required and does it fall within the scope of any law?
Necessity Are the forms/ documents, conditions, fees, essential to ensure compliance?
Proportionality Is implementation (time and process) fast and simple?
Other Key recommendations -
Classification and adherence with approval timelines and removal of compliance duplication.
Sharing of Information amongst government departments to prevent the imposition of avoidable compliances.
Sunset Clauses – provides that the instrument shall cease to have effect after a specific date unless further positive action is taken to extend the law.
Set up a Data Management team to tabulate, analyse, and internally disseminate stakeholder feedback.
Costs and benefits of proposed and existing compliances should be ascertained through stakeholder consultations before proposing any change - The report highlights the proposed implementation timeline, along with a sample compliance feedback metrics that could be used by various state departments in India.
Regulatory Impact Assessment – RIA should be made an intrinsic part of the regulatory ecosystem.
The Study Report is available here and further project details are available here.
IndiaTechOnline brings you this report as the regulatory framework for doing business has wider application in other states