New Delhi, Feb 04: Government is considering a series of measures, including setting up of Industrial Investment Facilitation Board for domestic companies, in view of the hardship faced by medium-sized firms due to multiplicity of regulations and laws to comply with. At a high-level meeting, convened by Prime Minister Atal Bihari Vajpayee, the deliberations centered around simplifying procedures including bringing self regulation or professional outsourcing, and ranking the performance of states to generate "healthy" competition, an official release said here today.
A committee, under P Govindrajan, secretary Department of Industrial Policy and Promotion, had submitted the report on 're-engineering of regulatory processes', which is to be put in practice within next six months, recommended "investment facilitation through handholding and problem solving by IIFB" and sought 'self-regulation' or 'professional outsourcing' in as many cases as possible.
It cited that foreign investment implementation authority was extending such support to the foreign investors.
The proposed re-engineering of the regulatory process had taken note of the various hurdles that the medium-sized firms had to cross in implementing the project and a Committee of Secretaries would review the progress every month, it said.
"At present, a typical medium-sized company has to deal with 27 inspectors from different departments of the Central and State governments and maintain 42 forms/returns. There are 25 laws to comply with on labour related issues alone," the release said. Bureau Report