Chandigarh Administration Dismantles Licence-Permit Raj, Streamlines Approvals
In a significant move to reduce bureaucratic red tape, the Chandigarh administration has initiated a comprehensive overhaul to dismantle the long-standing licence-permit-inspector raj. This reform aims to either eliminate or simplify the multitude of permissions, compliances, approvals, and non-objection certificates (NOCs) that have historically burdened citizens and businesses across various fields.
Central Government Nudge Drives Reforms
The initiative gained momentum following a strong directive from the central government, which outlined specific issues and actionable steps for improvement. A key focus area is streamlining the process for obtaining NOCs from different departments. To achieve this, the UT law department has been appointed as the nodal agency to conduct a thorough study of all existing NOCs, permits, licences, and compliances.
"The UT is studying and creating a comprehensive list of all licences/NOCs required for business operations and categorising them into those that can be eliminated and those that must be retained," stated a senior UT official.
Action Plan for Simplification
The administration's action plan, already being implemented in some departments, includes three primary strategies:
- Digitisation at the department level to modernise and speed up processes.
- Omission at the level of the Ministry of Home Affairs (MHA) and the Administrator, as per provisions of delegation of powers.
- Third-party certification at the MHA and Administrator level, also under delegation of powers, to reduce direct government oversight.
Eliminating Dual Licences for Businesses
One of the major hurdles addressed is the issue of dual licensing, where applicants face redundant requirements for starting or operating their businesses. The law department, with support from other departments, will study and compile a list of all necessary licences, categorising them for elimination or retention.
The administration is considering amending municipal laws or other applicable regulations to remove dual licensing for single compliance needs. Recommendations for eliminating specific licences or NOCs will be forwarded to the MHA as per the delegation of powers in respective acts.
Reforms in Health and Labour Departments
In the health sector, the central government has advised the UT to allow medical practitioners—such as doctors, nurses, and technicians—registered in any state medical council or the National Medical Register to practise in Chandigarh without additional prior approval. This could be based on self-certification, eliminating the need for NOCs from previous states. Amendments to the relevant Medical Council Act or Rules are under consideration.
For the labour department, registration for shops and commercial establishments will shift to an intimation basis, removing approval requirements. The UT plans to implement lifetime registration or a deemed licensing approach, with benchmarking against other states and feasibility analyses before seeking MHA approval.
Automatic Licences for Weights and Measures
The UT also plans to introduce automatic approval for licences for manufacturers and dealers of weights and measures, eliminating government inspections and renewal requirements. A similar process will apply to manufacturers and packers of pre-packaged commodities. Verification and stamping will rely on self-certification for low-risk items and third-party certification for others, with proposals to be sent to the MHA for further facilitation.
This sweeping reform initiative marks a pivotal step towards enhancing ease of living and doing business in Chandigarh, aligning with broader national efforts to reduce administrative burdens and foster economic growth.
