“A single window without grills in Telengana as quoted by Chief Minister of state” Ease of doing business in India- New Industrial Policy of Telengana State

“Minimum inspection and maximum facilitation” the mantra of the newly enacted Telangana State Industrial Project Approval and Self Certification System (TS-IPASS) Act, 2014.

Telangana State Industrial Project Approval and Self Certification System (TS-iPASS) Act, 2014 has repealed the existing Andhra Pradesh State Industrial Single Window Clearance Act of 2002, to facilitate the real time base clearances to industrial units proposed to be set up in the new State.

The act has mandated faster single point clearances development of the required infrastructure for the sector-specific parks to enable investors to start their work on day one from the allotment of land.

The Telangana State Government has enacted this act keeping the vision of hassle free process for issue of various licence, clearances and certification required for setting up industries in the State.

The Highlights of the Acts are worth noting as enshrined herein below:

Single-window clearance

Under the act, Single-window clearance system (TS-iPASS) to be created at three levels first for mega projects as State-Wide investment facilitation Board, second for large industries as State TS-iPASS Committee and last one for small and medium industries as District Committee shall give single point TS-iPASS.

Right to Clearance under TS-iPASS

As a unique provision, the Act also stipulated the provisions for applicant to know the reasons for delay in clearance and to cause the imposition of penalties to the designated officers of the competent authority.  To expedite the process of grievance handling the State Government may by notification, create a Grievance Redressal Mechanism.

Act to Override other Laws:

It is specifically mentioned under the Act that in case of inconsistency between the provisions of the Act and any other State laws for the time in force, the provisions of the Act shall have the overriding effect, except as provided under the Act.  

Time bound approval phase has been designed under the Act:

·         District Committee shall give single point TS-iPASS approval instead of individual department approvals within a period of 30 days to applications for all clearance for setting up of industrial unit with a proposed investment to be decided by the State Government under the Act.

·         Similarly, State TS-iPASS Committee provides a within a period of 30 days to applications for all clearance for setting up of industrial unit with a proposed investment to be decided by the State Government under the Act.

·         Telangana State-wide investment facilitation board to give provisional approvals to mega industrial projects within 15 days of receiving self-certified applications, on pre-scrutiny and on receiving the final approval from the respective department the nodal officer of the T-SWIFT Board, the applicant can commence the commercial production.

Note: It is laid down under the Act that the appropriate Competent authorities shall inform to the applicant the date on which the application was received by it and the date on which it was deemed to have been approved.

Constitution of State-Wide investment facilitation Board (T-SWIFT)

·         The Act contain the provisions for constitution of State-Wide investment facilitation Board (T-SWIFT) as state Level for clearance of “Mega Projects” to be headed by the Chief Secretary and Secretary Industries as the Member-Convener, where the Commission of Industries shall be the Nodal Officer. The term Mega Project will be dynamic in nature, to be decided by the State Government from time to time.

·         While making the application to T-SWIFT as envisaged under the act, the applicant has to submit the Self Certification, which shall be serve as an undertaking by an applicant that he shall comply with all the applicable provisions of the relevant Acts and laws applicable.

·         It is to be noted that if the entrepreneur who fails to comply with the terms or undertaking given to nodal agency or the competent authority will be punished with a fine as prescribed by the State Government. 

Brief on Procedure to get Single Window Clearance

1.      Applicant has to make a combined application to the competent authority in such Form as prescribed by the State Government to nodal agency of appropriate authority.

2.      Such application shall be accompanied by the Self Certification by the applicant.

3.      Application will be forwarded to competent authority by the nodal agency for processing and disposal.

4.      The applicant to furnish the additional information if required by the competent authority.

5.      The competent authority shall order sanctioning or rejecting the application to the Nodal agency to be given to applicant within the time limits as prescribed for each of such competent authority.

6.      A single point approval shall be given on behalf of all relevant departments.