CII Demands Central Law to Ensure Time-Bound Government Services for Businesses
The Confederation of Indian Industry (CII) has called for a new central legislation to guarantee the time-bound delivery of government services to businesses. The industry body argued that procedural delays and uncertainty over approval timelines hurt operational efficiency and investment. The proposed law would mandate timelines for approvals and refunds, impose penalties for delays, and establish a robust grievance redressal system. The move aims to enhance predictability and improve the overall ease of doing business in India.
Unpacked:
India’s Companies Act of 2013 regulates company formation and operations, but it does not mandate strict timelines for service delivery. Some states have enacted Right to Service Acts, but there is no comprehensive central law guaranteeing time-bound delivery for all business-related government services.
Industry groups frequently cite delays in obtaining business licenses, environmental clearances, tax refunds, and statutory approvals as major pain points. Such delays can impact project timelines, increase costs, and discourage both domestic and foreign investment.
Countries like Singapore and the UK have implemented digital one-stop portals, mandated service timelines, and established penalty systems for delays. These measures have significantly improved their global rankings for ease of doing business and enhanced investor confidence.
Key challenges include coordination between central and state governments, upgrading digital infrastructure, training staff, and ensuring accountability across diverse agencies. Resistance to change and concerns over bureaucratic discretion may also hinder smooth implementation.