Kerala govt to revise local body rules for industrial, commercial licenses
However, business ventures falling under the two sections of Category 2 must obtain a mandatory license from the panchayat secretary.
However, business ventures falling under the two sections of Category 2 must obtain a mandatory license from the panchayat secretary.
However, business ventures falling under the two sections of Category 2 must obtain a mandatory license from the panchayat secretary.
Thiruvananthapuram: The state government is set to revise the rules governing the allocation of industrial and commercial licenses by local self-government bodies.
According to Local Self-Governments Minister M B Rajesh, small-scale enterprises classified under the two sections of Category 1 by the Pollution Control Board will no longer require approval from panchayats. Instead, they will only need to complete a registration process.
However, business ventures falling under the two sections of Category 2 must obtain a mandatory license from the panchayat secretary.
The minister explained that these revisions are part of the Ease of Doing Business initiative. He also clarified that local self-government bodies cannot deny license applications but may impose necessary conditions.
The minister also pointed out that the High Court has ruled that administrative councils of local bodies do not have special authority in granting licenses and can only intervene in matters that fall within their jurisdiction.
The rule revisions were recommended by a committee chaired by the Principal Director of the Local Self-Government Department.
Key changes in licensing rules
Inspection limitations: Local bodies may conduct inspections only on matters within their jurisdiction, considering the capital investment and license fees of industrial ventures.
License transfer: Approved licenses can be transferred to a new investor in case of ownership change. Licenses can be renewed on the same day of filing an application through a fast-track process based on self-certification.
Mandatory licensing: The revised rules stipulate the provision of licences to all business ventures approved by the law.
Categorisation of ventures: Factories will be classified under Category 1, while commercial, trade, and service ventures will be placed under Category 2.
Licensing for home-based ventures: Micro-enterprises operating from homes, as well as other home-based commercial services, will now be eligible for licensing. This change aims to resolve issues faced by such ventures in obtaining bank loans and GST registration due to the absence of proper licenses.