Karnataka Industries Minister M B Patil
Credit: DH Photo
Bengaluru: Karnataka’s new single-window system, which promises business approvals within 100 days, will need at least six more months to take off as bringing 30 departments under one roof has become a grand challenge.
The ambitious new system, designed by tech giant Microsoft, was unveiled at the Invest Karnataka summit in February.
At present, industrial projects in the state require approvals from 33 departments, covering 177 types of services. The average approval time in Karnataka is 300 to a year compared with 60-70 days in neighbouring states.
“Complete integration and sensitisation will take another six months,” Industries Minister M B Patil said.
Patil said a meeting, chaired by Chief Minister Siddaramaiah, would be held along with other Cabinet colleagues.
“The single-window system isn’t about my department alone. It will involve forest, revenue and so on. They (ministers) need to be sensitised on things moving faster in their departments,” Patil said.
“Sometimes, there are delays from the Union Environment Ministry, which we’ll need to factor in. It’s a complex thing,” he said, insisting that the new single-window system, once ready, will be one of India’s best.
Facing stiff competition from other states, Karnataka has been trying to make investments a smooth affair.
In 2020-21, the government launched the affidavit-based clearance (ABC) system under which industries can start operations while getting a three-year window to obtain various permits. This failed to take off as banks are unwilling to provide loans based on ABC.
Right now, the state has two different portals - one for investment promotions and another for facilitation. After receiving in-principle approval, investors need to individually register with various departments and agencies, making it a “very tedious, cumbersome, time-consuming and inefficient” process, according to a note prepared by the Department of Industries and Commerce. Also, investors had to share project information with multiple departments or agencies, leading to “information redundancy”.
The new single-window system will provide investors the option of available all necessary services from one portal, without having to apply at multiple places.
Even the land allotment process will be under the single-window system.
“Land acquisition itself takes up to a year. We want to provide land in three months or under 100 days,” Patil said.
The government is borrowing Rs 5,000 crore from NABARD to clear all land payments to farmers and other stakeholders, he said. “We’ll keep these lands ready for select investment purposes.”