The Tamil Nadu government has decided to enact a law to ensure that approvals needed to start a business are granted within 21 days.
Companies setting up operations in the state typically require clearances from multiple departments, including the Pollution Control Board and local bodies. The Tamil Nadu Guidance agency facilitates these permissions through a single-window system.
With a change in administration, industry department officials have been focusing on attracting fresh investments and have been informing firms that approvals would be issued within 21 days.
However, delays by some departments in issuing permissions have affected investors. To address this, the government plans to fix a statutory timeline of 21 days for project approvals.
Under the proposed framework, if an application is not cleared within 21 days, the approval would be treated as automatically granted. A draft bill is currently being prepared.
