In a significant move aimed at overhauling India's regulatory landscape, the government's policy think tank, Niti Aayog, has put forward a series of radical recommendations designed to foster a trust-based regulatory framework. The core proposal suggests that most licences, permits, and No Objection Certificates (NOCs) should be granted perpetual validity, doing away with the need for periodic renewals that often burden businesses and individuals.
Key Recommendations for a Lighter Regulatory Touch
The panel, led by Niti Aayog member Rajiv Gauba, has outlined specific conditions where renewals would still be necessary. These exceptions are reserved for critical reasons such as national security, serious harm to public safety, human health, or the environment. Even in these exceptional cases, the panel has suggested that the validity period should be extended to a longer duration of five or ten years instead of shorter terms.
Further simplifying procedures, the think tank stated that any activity not explicitly prohibited by law should be exempt from requiring prior permission. It emphasised that licensing and compliance rules must be proportionate to the risk involved. For ordinary cases, the need for prior approvals should be eliminated. While registration for maintaining databases may be required, it should not be subject to an approval or rejection process. Instead, self-registration based on minimal documentation should become the standard practice.
Transforming the Inspection Regime to Curb Harassment
In a direct attempt to eliminate the notorious 'inspector raj', Niti Aayog has proposed a major shift in how inspections are conducted. The new norm should be inspections carried out by accredited third-party agencies, selected through a transparent, computer-assisted randomised process based on risk assessment.
Government departments will be tasked with setting clear criteria for selecting these third parties and assessing their performance periodically. Inspections by government officers will become the exception, not the rule, and will only occur when absolutely necessary, following well-defined Standard Operating Procedures (SOPs). Officials believe this system will ensure predictability, fairness, and reduce the enforcement burden, thereby promoting innovation and boosting confidence in governance.
Decriminalisation and Interoperability for Ease of Living
Another critical area of focus is the decriminalisation of minor offences. Niti Aayog has advised various ministries that minor, procedural, and technical violations should be decriminalised. Criminal penalties should be reserved solely for serious offences. This move is expected to reduce unnecessary litigation and fear among businesses and citizens.
To further reduce bureaucratic red tape, the panel highlighted the need for interoperability of systems at the ministry level. This means that information submitted once to any government system should not need to be re-submitted to another, creating a seamless and hassle-free experience for the public.
These comprehensive suggestions, which mark a paradigm shift towards trust-based governance, have now been sent to all relevant ministries and departments for consideration and implementation.
