About 70% of the compliance-related issues companies face are related to labor codes and will be resolved once states notify the four labor codes approved by Parliament, a senior Industry Department official said Wednesday.
The government reduced 25,000 compliances last year but recognizes many more need to be reduced to improve business operations, said Anurag Jain, minister at the Department of Industry and Domestic Trade Promotion (DPIIT). The department has reviewed reports of 27,000 laws that allow people to be imprisoned for doing business and stands ready to work with companies that report such problem areas to resolve them.
“In their research, we found that almost 70% concern labor laws, for which Parliament passed four labor laws to simplify those laws. So a major concern has already been addressed, but we still need to work together to ensure that most states are on board and we are able to communicate these changes,” Mr Jain said at the Indian Venture and Alternate Capital Association’s annual conclave.
Mr Jain urged start-ups to register for the new single-window clearance scheme, which had a “soft launch” in September 2021, saying nearly 1,000 clearances have already passed through the scheme with an “end -to-End’ Nod under the Vehicle Scrapping Policy.
“So far we have 17,000 to 18,000 users on the portal… But I would like it in lakhs, in millions, I would ask all startups to apply in the national only window for their new ventures and whatever problems they are facing encounter, please let us know,” said Mr. Jain. The approvals of up to 21 central government departments have been integrated into the system, and 15 states have also come on board so far.
