<p>Karnataka is looking to push through two more major labour law reforms — elimination of licence renewals and streamlining industrial inspections — as doing this will allow the state to borrow an additional 2% of its gross state domestic product (GSDP), which is nearly Rs 17 lakh crore. </p>.<p>The Commerce & Industries department has asked the labour department to implement the reforms by September 15 and share “compliance evidence”. </p>.<p>These reforms are linked to Karnataka’s eligibility to borrow loans to manage the economic difficulty. </p>.<p>In May, the Centre raised the borrowing limit of states from 3% to 5% of the GSDP. However, incremental borrowing beyond 3.5% of GSDP is linked to reforms. </p>.<p>Last month, the BS Yediyurappa-led government, which is looking to raise money from the market, promulgated a pro-industry ordinance tweaking three labour-related laws. At 3% of the GSDP, Karnataka is eligible to borrow around Rs 50,000 crore. If it carries out reforms, it can borrow an additional Rs 15,000 crore.</p>.<p>“The requirements for renewal of certificates/approvals/licences obtained by businesses for various activities has to be eliminated,” Commerce & Industries principal secretary Gaurav Gupta stated in a letter to Additional Chief Secretary (Labour) Rajkumar Khatri.</p>.<p>“However, it is stated by the Department for Promotion of Industry and Internal Trade (DPIIT) that mere collection of reasonable fees with automatic non-discretionary deemed renewal is permitted if done in a transparent, online, non-discretionary and automatic manner.” </p>.<p>The current licensing regime under Shops and Establishments Act, Contract Labour (Regulations and Abolition), Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act and Factories Act will have to go. </p>.<p>Further, the Commerce & Industries department wants a ‘computerised central random inspection system’. “The same inspector is not to be assigned to the same unit in subsequent years, prior inspection notice has to be provided for business owners automatically and inspection report has to be uploaded within 48 hours of inspection,” Gupta has stated. </p>.<p>“These (reforms) will help. Businesses should not get bogged down with compliance requirements,” Gupta told DH. “By elimination of renewals, we mean something like long-term licences. And the centralised, computerised inspection will be a single portal across departments for which the labour department should take the ownership,” he said. </p>.<p>Federation of Karnataka Chambers of Commerce & Industry (FKCCI) president CR Janardhan said deemed renewals will help. “That will help proprietors, who otherwise look at orders, delivery schedules, bank loans and statutory obligations, focus more on the daily operations,” he said. </p>
<p>Karnataka is looking to push through two more major labour law reforms — elimination of licence renewals and streamlining industrial inspections — as doing this will allow the state to borrow an additional 2% of its gross state domestic product (GSDP), which is nearly Rs 17 lakh crore. </p>.<p>The Commerce & Industries department has asked the labour department to implement the reforms by September 15 and share “compliance evidence”. </p>.<p>These reforms are linked to Karnataka’s eligibility to borrow loans to manage the economic difficulty. </p>.<p>In May, the Centre raised the borrowing limit of states from 3% to 5% of the GSDP. However, incremental borrowing beyond 3.5% of GSDP is linked to reforms. </p>.<p>Last month, the BS Yediyurappa-led government, which is looking to raise money from the market, promulgated a pro-industry ordinance tweaking three labour-related laws. At 3% of the GSDP, Karnataka is eligible to borrow around Rs 50,000 crore. If it carries out reforms, it can borrow an additional Rs 15,000 crore.</p>.<p>“The requirements for renewal of certificates/approvals/licences obtained by businesses for various activities has to be eliminated,” Commerce & Industries principal secretary Gaurav Gupta stated in a letter to Additional Chief Secretary (Labour) Rajkumar Khatri.</p>.<p>“However, it is stated by the Department for Promotion of Industry and Internal Trade (DPIIT) that mere collection of reasonable fees with automatic non-discretionary deemed renewal is permitted if done in a transparent, online, non-discretionary and automatic manner.” </p>.<p>The current licensing regime under Shops and Establishments Act, Contract Labour (Regulations and Abolition), Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act and Factories Act will have to go. </p>.<p>Further, the Commerce & Industries department wants a ‘computerised central random inspection system’. “The same inspector is not to be assigned to the same unit in subsequent years, prior inspection notice has to be provided for business owners automatically and inspection report has to be uploaded within 48 hours of inspection,” Gupta has stated. </p>.<p>“These (reforms) will help. Businesses should not get bogged down with compliance requirements,” Gupta told DH. “By elimination of renewals, we mean something like long-term licences. And the centralised, computerised inspection will be a single portal across departments for which the labour department should take the ownership,” he said. </p>.<p>Federation of Karnataka Chambers of Commerce & Industry (FKCCI) president CR Janardhan said deemed renewals will help. “That will help proprietors, who otherwise look at orders, delivery schedules, bank loans and statutory obligations, focus more on the daily operations,” he said. </p>
