SUMMER TRAINING REPORT

On

Study on Single Window Clearance Systems, Various Policies for

Investors and Ease of Doing Business in Uttarakhand

EY LLP

Submitted in partial fulfillment of requirements of Post Graduate Diploma in

Management

By

Sahil Kumar

PGDM

2018-2020

Under the Supervision of

Dr. Mohit Kumar

Associate Professor (Finance)

IILM Academy of Higher Learning, Lucknow

1, Viraj Khand, Gomti Nagar, Lucknow – 226010

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 ACKNOWLEDGEMENT
Before we get into thick of things, I would like to add a few words of Appreciation for the people
who have been a part of this project right from its inception. The writing of this project has been
one of the significant academic challenges. I have faced and without the support, patience and
guidance of the people involved, this task would not be completed. It is to them I owe my
deepest gratitude. It gives me immense pleasure in presenting this project report on “Study on
Single Window Clearance Systems, Various Policies for Investors and Ease of Doing Business
in Uttarakhand”.

The success of this project is result of sheer hard work, and determination put in by me with the
help of my project guide. I am extremely grateful to my college Director, Dr. Naela Rushdi, Dean
Sheetal Sharma, Mr. Mohit Kumar as college mentor and organization mentor Mr. Kanhan
Vijay, Mr. Sourabh Taniwal and Mr. Abhinav Gautam from Ernst & Young for their valuable
guidance and timely suggestions. Without their insights, support and energy, this project would
not have kick started and neither would have reached fruitfulness.

I also feel heartiest sense of obligation to my library staff members & seniors who helped me in
collection of data, resource material & in its processing as well in drafting manuscript. The
project dedicates to all those people, who helped me while doing this project.

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 INDEX OF CONTENTS
S. No. Topics Page No.
1 Executive Summary 4
2 Introduction 5
3 Ease of doing Business 6
4 Methodology 7
5 Ease of doing Business Score 8
6 Department for Promotion of Industries and Internal Trade 11
7 Assessment Framework for Reform Enabling (June 2015) 14
8 Assessment Report on State Implementation of Business 15
Reforms
9 Best Practices of States/UTs (2017) 16
10 Business Reform action Plan (2019) 20
11 Ease of Doing Business in Uttarakhand 21
12 Single Window Clearance System 23
13 Uttarakhand Enterprises Single Window Facilitation and 24
clearances Act, 2012
14 Benchmarking of Single Window Clearance System 28
15 Micro, Small and Medium Enterprises 30
16 Fiscal incentives 33
17 Benchmarking of MSME Policies 34
18 Start-up 37
19 Benchmarking of Start-ups Ups 40

EXECUTIVE SUMMARY
The state Uttarakhand was formed on 9th November 2000 as the 27th State of India, when it was
carved out of northern Uttar Pradesh. Located at the foothills of the Himalayan mountain
ranges, it is largely a hilly State, having international boundaries with China (Tibet) in the north
and Nepal in the east. On its north-west lies Himachal Pradesh, while on the south is Uttar
Pradesh. It is rich in natural resources especially water and forests with many glaciers, rivers,
dense forests and snow-clad mountain peaks. Char-dhams, the four most sacred and revered
Hindu temples of Badrinath, Kedarnath, Gangotri and Yamunotri are nestled in the mighty
mountains. It is truly God’s Land (Dev Bhoomi). Dehradun is the Capital of Uttarakhand. It is

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one of the most beautiful resorts in the sub mountain tracts of India, known for its scenic
surroundings. The town lies in the Dun Valley, on the watershed of the Ganga and Yamuna
rivers.

With levels of literacy higher than the national average, the State has abundant availability of
quality human resources. Within a short span of its existence, Uttarakhand has emerged as a
significant destination for investments in manufacturing industry, tourism and infrastructure.
Emphasis is on stimulating all three sectors of its economy (agriculture, industry and services),
to their fullest potential in tandem with the geographic profile of the state. The Government of
Uttarakhand has undertaken several policy measures and incentives in order to encourage
inflow of investment into the various sectors of its economy.

Keeping in view need for the investment of investable surplus, the Government has taken a

number of major initiatives to upgrade the infrastructure & G2B Services delivery in Uttarakhand
to boost economic growth in the state. Uttarakhand has nearly 272 large, 49000 MSME
Enterprises with an investment of over Rs. 45000 Crores providing direct employment to more
than 350000 persons. There are 07 Industrial Estates in different areas totaling around
8000 acres and comprising of 2000 Industrial units.

Major Corporate like Hero mottocorp, TATA Motors, M&M, Hindustan Unilever, ITC, C & S

Electric Co, Godrej, VIP Industries, Kirby Building Systems India Ltd, Britannia, Dabber, Bajaj,
Ashoka Leyland etc. and many IT & ITES companies are functioning in the State.

This report provides an introduction of Ease of Doing Business and this report shows proper
architecture of facilitation for investor into the State of Uttarakhand.

It details about Single window Clearance System in Uttarakhand and Some Government
Policies, Acts & Incentives, Subsidies (MSME Policies & Start UP Policies). A benchmarking
exercise is about the Single Window Clearance Systems, MSME Policies and Start-Up Policies
of all the States in India.

The project was a great platform to learning about the industrial scenario of Uttarakhand, Ease
of Doing Business, Single Window Clearance System, Government Policies, Acts and
government functioning.

INTRODUCTION
Ernst & Young (doing business as EY) is a multinational professional services firm
headquartered in London, England, United Kingdom. EY is one of the largest professional
services firms in the world. Along with Deloitte, KPMG and PricewaterhouseCoopers (PwC), EY
is considered one of the Big Four accounting firms. EY has recently shifted its historical
business focus towards consulting. In particular, EY advanced its market presence in strategic
consulting and entered into direct competition with what has been a traditional field of "Big
Three" companies, namely Bain, McKinsey and BCG. By series of acquisitions and shift of
market focus, EY expanded its market share in areas including operations services consulting,

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strategy services consulting, HR services consulting, financial services consulting & technology
services consulting.
EY operates as a network of member firms, which are separate legal entities in individual
countries. It has 270,000 employees in over 700 offices around 150 countries in the world.It
provides assurance (including financial audit), tax, consulting and advisory services to
companies.
The firm dates back to 1849 with the founding of Harding & Pullein in England. The current firm
was formed by a merger of Ernst & Whiney and Arthur Young & Co. in 1989. It was known as
Ernst & Young until 2013 when it underwent a rebranding to EY. The initial "EY" was already an
informal name for the firm prior to its official adoption.
In 2018, Fortune magazine ranked EY 52nd on the 100 Best Companies to Work For list. In
2017, EY was the 9th largest privately owned organization in the United States.
Over the course of its operations, EY has transformed its business model and diversified pool of
its offered services. Conventionally known as a Big 4 accounting firm over the course of 2010-
2019, EY has substantially altered its business approach towards more comprehensive scope of
services. This is mainly attributed to an intensified competition in the existing market of
professional services and competition in new markets: investment banking and strategic
consultancy. According to latest data published, the company has the following four main
service lines:[39]

 Assurance: comprises Financial Audit (core assurance), Financial Accounting Advisory

Services and Forensic & Integrity Services.
 Tax includes Transfer Pricing, International Tax Services, Business Tax Compliance,
People Advisory, Global Trade, Indirect Tax, Tax Accounting & Risk Advisory Services, Tax
Technology and Transformation, Transaction Tax.
 Advisory: consisting of four subservice lines: Actuarial, IT Risk and Assurance, Risk, and
Performance Improvement.
 Transaction Advisory Services (TAS): deals with companies' capital
transformation – including Business Valuation and Economics, Due Diligence, Real
Estate Advisory Services, Project Finance and Infrastructure,
M&A, Restructuring (financial and operational), Corporate Finance Strategy.

In the vertical of Transaction Advisory Services (TAS), Company is dealing with Government.
Company is giving consultancy to Government of Uttarakhand and facilitate Investors as well
under the umbrella of Make in India, Ease of Doing Business, Single Window Clearance
System and Investment Promotion in Uttarakhand.
Doing Business is founded on the principle that Economic activity profits from clear and
coherent Rules that set out strong property rights, facilitate the resolution of disputes and
provide contractual partners with protection against and abuse able practices and such rules
are much more effective in promoting growth and development when they are efficient.

Doing Business measures aspects of business regulation effectively small and medium size
domestic firms and located in the largest business cities of 190 economies. The role of
Government policies in the daily operation of small and Medium size domestic firms are a
central focus of the Doing Business Data which encourages the efficient, transparent and high
implementation regulation in 11 areas of regulation affection SMEs in the largest business cities
of an economy.

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In short, Doing Business Data is only focused on the role of government policies in the
daily operation of SMEs and How they are implemented business regulations by
government and experienced by private firms on the ground.

Doing Business gives some important dimensions of domestic firms and provides quantitative
indicators and data focuses on trade volume, FDI (foreign direct Investment).

Ease of Doing Business is an index published by the World Bank. It is an aggregate figure that
includes different parameters, which defines the Ease of Doing Business in a country.

It is computed by aggregating the distance to Frontier scores of different economies. The

distance to frontier score uses the ‘regulatory best practices for doing business as the
parameter and benchmark economies according to that parameter. For each of the indicators
that form a part of the statistics ‘Ease of Doing Business’, a distance to score is computed and
all the scores are aggregated. The aggregated score becomes Ease of Doing Business
Indicator for various parameters.

Similarly, Government of India took initiative for all States in the country by giving
recommendations for Ease of Doing Business. DPIIT (Department for promotion of Industries &
Internal Trade) gives recommendations (BRAP) for all the States of India & gives Scores and
Ranking based on given recommendations.

One of major recommendation for all the States is Single Window Clearance System to facilitate
the investors & Stakeholder Departments in terms of Incentives, Schemes, Policies and
Subsidies, Acts, Services (Licenses, Approvals, NoCs), Requirement of Land everything will be
in Single Window Clearance System for Pre–Establishment, Pre–Operation and Post–Operation
Services.

EASE OF DOING BUSINESS

Ease of Doing Business is founded on the principle that Economic activity profits from clear and
coherent Rules that set out strong property rights facilitate the resolution of disputes and provide
contractual partners with protection against and abuse able practices and such rules are much
more effective in promoting growth and development when they are efficient.

Ease of Doing Business measures aspects of business regulation effectively small and medium
size domestic firms and located in the largest business cities of 190 economies. The role of
Government policies in the daily operation of small and medium size domestic firms are a
central focus of the Doing Business Data which encourages the efficient, transparent and high

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implementation regulation in 11 areas of regulation affection SMEs in the largest business cities
of an economy.

Ease of Doing Business gives some important dimensions of domestic firms and provides
quantitative indicators and data focuses on trade volume, FDI (foreign direct Investment),
Market capitalization in stock exchange, private credit as percentage of GDP.

Ease of Doing Business score Index reflects the idea of the measuring a score indicating an
economy’s position to the best regulatory practice.
There are ten areas of business regulations are measures by World Bank Group.

Indicators What Doing Business measured

Starting Business
Construction permits
Getting electricity
Procedures, time, cost and paid-in minimum capital to start a
limited liability company for men and women
Procedures, time and cost to complete all formalities to build a
warehouse and the quality control and safety mechanisms in
the construction permitting system
Procedures, time and cost to get connected to the electrical
grid, the reliability of the electricity supply and the transparency
of tariffs

Procedures, time and cost to transfer a property and the quality

Registering Property
of the land administration system for men and women

Getting credit Movable collateral laws and credit information systems

Minority shareholders' rights in related- party transactions and
Protecting minority interests
in corporate governance

Payments, time and total tax and contribution rate for a firm to
Paying taxes
comply with all tax regulations as well as post filling processes

Time and cost to export the products of comparative advantage

Trade
Enforcing contracts
Resolving Insolvency
and import auto parts
Time and cost to resolve a commercial disputes and the quality
of judicial processes for men and women
Time, cost , outcome and recovery rate for a commercial
insolvency and the strength of the legal framework for
insolvency

The Ease of Doing Business point scores of an economy on different indicators are based on
average value of obtained scores from all different indicators.

According to Ease of Doing Business rankings, this year country has been one of the biggest
improvers in 2019 with its rank gone upstairs from 100 to 77 among 190 countries but it has a
long way to go before it can catch up with New Zealand who is topper of the EODB ranking.

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India’s top cities managed to shrink the days they took to give construction permits, from 144
days to 95 days, by cutting their costs from 23% of building value to just 5% and emphasizing
on Single Window Clearance for securing buildings permits in Delhi and a new online system
in Mumbai. Export and Imports are also improved drastically just because of up gradation in port
infrastructure, online documentation and most important managed incremental reforms in few
other indicators.

Ease of Doing Business Data Collection in Practice

Data collection for Ease of Doing Business Rankings are based on detail reading of domestic
laws, regulations and administrative requirements as well as their implementation in practices
experienced by private firms. The data collected through responses to questioners, conference
calls, written correspondence and visiting teams. According World Bank flagship reports 2019
Two-Third of Data are intend in the indicators are based only on a reading of Laws.
Data verification also has to do by Doing Business teams they gives primary information on
reforms with World Bank Group regional teams for their feedback and team Analyzes the Data
and writes the report and gives comments on report and received from across the world Bank
group through and after proceeding these they gives internal reviews followed by Report
published.

Methodology

Ease of Doing Business Data is not statistical survey it is based on questionnaires which is
developed by World bank Group. The questionnaires are surveyed to Lawyers, Business
consultants, accountants, freight forwarders, government officials, and other professionals
routinely and with total transparency, Information about regulations and local responded are
clarify about misinterpretation the questionnaire.

The Ease of Doing Business Methodology has some limitations in several economies. The data
collection practice is only for the largest industrial cities in every economy (except 11 economies
including India) and it is only for specific businesses (generally a limited liability company).
Some assumption about the business which are suppose to be in the criteria of Ease of Doing
Business Index

1. Business is a limited liability company operates in the largest Industrial city of economy.
2. The Business has startup capital of 10 times income per capita

Advantages of Ease of Doing Business Methodology

1. Ease of Doing Business methodology makes data comparable and manageable across
economies.
2. Keeps attention on formal sectors where regulations are relevant and firms are most
productive.
3. Ensure that Data reflects knowledge of those with most experience in conducting types of
transaction measured.
4. Makes indicators actionable because the law is what policy makers can change.

Limitations of Ease of Doing Business Methodology

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1. Ease of Doing Business methodology reduces scope of data only regulatory reforms in
areas measured systematically tracked.
2. Ease of Doing Business methodology reduces representativeness of data for economy if
there are significant differences across locations.
3. Unable to reflect reality for informal sectors important where that is larger or foreign firms
facing different set of constraints
4. Indicators less able to capture variations in experiences among entrepreneurs
5. Where systematic compliance with the law is lacking, regulatory changes will not achieve full
results desired.

Ease of Doing Business Score

Ease of Doing Business is a score, which indicates an economy’s position to best regulatory
practices. The score combines measures with different units such as time to start a company or
procedure to transfer a property. The score captures the gap between an economy’s current
performance and a measure of best regulatory practice set in Ease of Doing Business 2015
across the entire sample of the 10 indicators. For example, According to the Doing Business
database, across all economies and over time, the least time needed to start a business is 0.5
days, while in the worst 5% of cases it takes more than 100 days. Therefore, half a day
considered the best performance, while 100 days is the worst. Higher scores show absolute
better ease of doing business (the best score is set at 100), while lower scores show absolute
poorer ease of doing business (the worst performance is set at 0). The percentage point scores
of an economy on different indicators can be averaged together to obtain an aggregate Score.

New Zealand is topper of the Ease of Doing Business according to flagship report published by
World Bank group. India stands on 77th rank of Ease of Doing Business rank table.

Based on an economy’s performance in each of the 11 measured areas, the report scores the
efficiency and quality of the business environment. This approach facilitates the comparison of
regulation and practice across economies and allows changes to be track over time. The Ease
of Doing Business score serves as the basis for ranking economies on their Business
environment to obtain the ranking, their scores sort economies. The Ease of Doing Business
score shows an economy’s absolute position to the best regulatory practice, while the ease of
doing business ranking is an indication of an economy’s position relative to that of other
economies. The economies that rank highest in the Ease of Doing Business are those that have
consistently well-designed business regulation or whose regulatory environments have thrived
thanks to comprehensive reform over the years.

Ease of Doing Business

INDIA

India’s ability to achieve rapid, sustainable development will have profound implications for the
world.  India’s success will be central to the world’s collective ambition of ending extreme
poverty and promoting shared prosperity, as well as for achieving the 2030 sustainable
development goals (SDGs).  Indeed, the world will be only able to eliminate poverty if India
succeeds in lifting its citizens above the poverty line.

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For international trade and the health of the global economy too, India’s growth will be an ever
more important. In addition, the carbon footprint India leaves as it propels its high growth will
have a significant influence on the planet’s ability to keep global warming within the 2-degree
threshold. On crucial issues ranging from managing scarce water resources, to modernizing
food systems, to improving rural livelihoods, to ensuring that megacities become engines of
sustainable economic growth and inclusion, India’s development trajectory will have a major
influence on the rest of the world.

At the same time, India is growing economic and political stature and the relevance of its
experience, expertise and investments for the development efforts of other nations well-position
the country to play a greater leadership role in the global arena.

Doing Business Reform affecting all sets of indicators divided into two

Reforms making easier to do business

Change making it to more difficult to do Business.

Starting a Business : In India starting a Business indicators improved and made easier by
totally integrating enormous number of Application forms into a general forms and changed
Tax regulations from Value added Tax to GST( Good and Services Tax) in which registration
process is faster in Both cities Delhi and Mumbai. Mumbai abolished the exercise of cite
inspection for registering companies under the Shops and Establishment Act. ESIC and
EPFO become completely online, form-29 by MCA (Ministry of corporate Affairs) is
introduced.

Construction Permit: In India, Process of obtaining a building permit is getting easier, faster
and cost also reduced and Improvement of building quantities are also India got by
introducing decennial liability and Insurances.

Getting Electricity: Delhi electricity authority reduced cost for low voltage connections.

Getting Credit: India strengthened access to credit by amending its insolvency law, creditors
who secured gives absolute priority over other claims.

Paying taxes : India made paying taxes easier by changing the other indirect taxes into
GST( goods and services Tax) in whole country and reduced corporate income tax rate,
employee provident funds scheme rate

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 Trading across border: In India, reduction of cost went on for export & import through
implementation of electronic sealing containers, upgrading of post infrastructure and
allowing electronic submission of respective documents. The CBEC (Central Board of
Excise and Customs) has implemented ‘Indian customs single window system’ to facilitate
Trade.

Labor Market: Only in Mumbai, pertaining weekly holidays, overtime hours and Paid Annual
leave.

Note: Labor Market Regulations are not included in Ease of Doing Business ranking score.

The Government of India has taken an initiative on Ease of Doing Business in all individual
States. Department for Promotion of Industries and Internal Trade is governing the Ease of
Doing Business in every states.

Department for Promotion of Industries and Internal Trade

Department of Industrial policy and Promotion has been changed into Department for Promotion
of Industries and Internal Trade. The regulations of Industries and administration of the
industrial sector, The role of the department has been changed into facilitating investment and
technology flows and monitoring industrial development.

 Formulation and Implementation of policies of Industries and making strategies in the

development with national objectives.
 Seeking the Industrial Growth.
 Formulation of FDI (foreign Direct Investment) Policy and promotion, approval and
facilitation of FDI.
 Encouragement to foreign Technology collaborations at enterprise level and formulating
policy parameters for the same
 Promotion of productivity, quality and technical cooperation

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The Department is responsible for encouraging acquisition of technological capability in various
sectors of the industry through liberal foreign technology collaboration regime also and It is
responsible to patents Designs Trademarks and geographical Indication of goods and services

The Department administers the some central legislations through its attached offices and
statutory organizations e.g. the office of chief controller of Explosives for The Explosive Act.
1884 and Inflammable Substances Act. 1952, Office of Salt commissioner for The Salt Cess
Act, 1953, The Boilers Act, 1923 is administered through the central Boilers Board has the
responsibility of State and Central both govt and Intellectual Property Rights as well.

There are some Autonomous Institutions like National Council for cement and Building Materials
(NCCBM), Indian Rubber Manufacturer Research Association (IRMRA), National Institute of
Design (NID), National Productivity council (NPC), Quality council of India (QCI) and Central
pulp and paper Research Institute (CPPRI).

There are some sections/cells/divisions in DPIIT. Finance Division, Boiler Divisions , Business
Environment Division, Cash Division, Cement Division, Coordination Division, Consumer
Industry Division, Establishment Division, Explosive Division, Foreign Collaboration Division,
General Administration Division, Hindi Division, Indian Statistical Division, IEM Division,
Infrastructure Development Division, Intellectual Property Rights Division, Investment Promotion
and International Co- operation Division, Leather Division, Light Engineering Division, Library
Division, Linoleum and Rubber Division, MP division, NPC & QCI Division, O & M Division,
Paper Division, Parliament Division, Planning Division, PR&C Division, Record cell division, R&I
Division, RTI Division, Salt Division, Special package Division, TSW Division, UNIDO Division,
Vigilance and ACR cell.

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India’s ranking in the World Bank’s Doing Business report 2019 has been improved. It would
improve Investors sentiments and should better FDI, Funds on the ground. Note that there are
remain substantial areas like when it comes to such parameters like ‘Registering property’. The
Doing Business survey also has India rankings. And the latter list shows that such cities as
Ludhiana, Hyderabad and Bhubaneswar are the top three in the national list ahead of
Delhi and Mumbai. It suggests that co operative federalism, and healthy competition between
states for Investments and project proposal can improve the Ease of Doing Business nationally.

India has been started some reforms for doing business ranking which administrated by
Department for Promotion of Industries and Internal Trade and government also putting up
efforts for doing it much better.

Department for Promotion of Industry and Internal Trade (DPIIT) is started a national level
exercise that commenced in 2014 to rank all the states and Union Territories in the country on
the reforms undertaken

The main objective of this is to proper structure of regulatory bodies and conducive business
environment and making India Investors friendly to do much better raking of doing Business by
World Bank Group by cutting down the Excess of regulations and Inspections Process which
was too complicated due to some abusive practices of officials. In India Promotion of Investor
confidence started the reform which is undertaken by DPIIT and the process of “Assessing state
level Reforms”. In 2014 state representatives identified reforms and subsequently a report
“Assessment of State Implementation of Business Reforms” was released in September 2015
with 98 recommendations.

In 2016, 340 points action Plan has been released which was held by consultation of State/ UTs
representatives of including 58 regulatory bodies and process and policies into 10 reform area
except Labour Market Regulations which is not included in the ranking of Ease of Doing
Business. The final ranking of States/UTs according to implementation average stood at 48.93%
higher than previous Year and 32% states achieved more than 90% implementation score.

In 2017, BRAP (Business Reform Action Plan) updated to 372 action points with new sectors.
Health Care, Hospitality, Central inspection system, Trade Licenses, registration under legal.
After 2017, In 2018 Department has identified 80 actions Plan.

In 2014 Department identified some recommendations with the help of State Representatives to
make a Framework for stimulating Investment in Manufacturing

Setting up a business: Publishing a comprehensive checklist for all requirements for NOCs,
licenses, environment suggestion of compliances – Registration for professional Taxes,
Registration under the shops establishment Act., registration for Employee family pension
fund,1971, Registration and renewal of Factor license under the factories Act., Registration
and renewal of Boilers License under Boilers Act, 1923 , etc. Registration of Plastic
manufacturing sales and usage rules, Registration certificate issued under VAT/central
taxes, Single registration and IDs for all State Taxes and Integration of all the application
forms into Combine application Form.

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 Land and Building: Development of a framework for such land a) No industry b) Green
Industry only c) No red Industry d) All type lands development of a comprehensive
digitalized GIS enable land Record database in time bound manner.

Registering Property: The States are recommended by the framework which is developed
for registering properties are making the format available online, E- stamp facilities across
sub registrar offices in the state with digital data and integrate the same and the process by
automatic update of land and municipal record with registration of property and most impact
full, draw a route map for implementation of the recommendation.

Construction Permit: Combine application form (CAF) for Municipal authority, Tree authority,
drain department, sewage department, electric department, traffic and coordination
department., Based on third party certification allowance of auto approval, development of
mechanism for penalty to be enforced on the engineers and single joint site inspection is
done by authority wherein NOC is conveyed to municipal authority directly and accordingly
approval.
Environment compliances : Categorize industry into Green, Amber, Red where Green
means No Inspection, Amber means self certificate with default penalty, Red means
compulsory certification and Time bound, implementation of electronic management system,
Authorization under Bio medical waste 1998, Provisions of Air (Prevention and control
Pollution Act, 1981), Provisions of water (Prevention and control of pollution Act 1974),
Hazardous Waste rules (Management, handling and transboundary management rules
2008), consent of operate under the provisions of air (prevention and control of pollution
act,1981), registration under plastic manufacturing sales and usage rules 1999, payment of
water cess under the provision of water, Environment clearances (EC) under Aravali
Notifications 1992 and 1999, self declaration and self certifications along with increase in
penalties, ensure that there is a single return requirement and a single online registration
has to maintain, allow inspections by third party and conduct random inspection based on
computerized risk assessment.
Infrastructure related utilities: States are recommended for create CAF (combine application
form) for obtaining related utilities (electricity, water, sewages, gas) , clear licenses should
be prominently displayed on the application for itself.

Getting Electricity: Online submission of Application, Date of Inspection should be in 7days,

ensuring that there is fixed cost estimates based on local with no processing change and
time for all permissions has to be in 15days and allow third party inspection.

Finance and Tax: The states are recommended to allow online payments of all states levies
and taxes, allowing falling of online return annually and promote acceptances of return at
service centres, provide for simple e-filing and assistance of e-filing at service centres,
simplification of VAT refund by making payment directly into firms account within 60 days,
advance ruling of tax for state level taxes on the lines of Income Tax act., and make
Common application form for VAT, central taxes, entry tax, luxury tax., promotion of risk

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 based inspection audit or an certain information and setting up of toll free helpline number,
provide pre dispute consultation to the defaulters before issuing a tax demand notice.

Inspection Reforms: The states and UTs are recommended to form a central inspection
agency which will be responsible for inspection with network of local branch, documentation
and publishing of inspection form and templates, furnishing final reports with 72 hours,
conduction of surprise inspection based on complaints with specific permission, building of
capacity of inspector’s skills training.

Assessment Framework for Reform Enabling (June 2015)

India was ranked 142 among 189 nations in the World Bank’s ease of doing business 2015.
India’s overall ranking and the individual rankings parameters clearly showed that the
reforms needed to be initiated at various levels across centre, state and local government.

State level Assessment: Being a federal nation, the ease of doing business in a state is a
function of the structure and framework put in place by state along with the implementation
of the structure. In order to enhance the doing business ranking, DIPP assess states in
India.
Objective: The main objective of the DIPP to assess the implementation of various factors
enabling ease of doing business in a State and comparative study of states with regard to
the implementation status.

Assessment framework: Measurability: measurability stands for states measurement of the

implementation status.
Comparability across States: comparability across states stands for the comparison of
factors which are indentified for doing business. A part of Assessment framework was
following
 Capture
 Assess
 Collate
 Share

Capture : The questionnaire is in nominal data includes Yes, No, N/A options where Yes
stands for respecting factor has been implemented , No stands for that factors which are yet
to be implemented and N/A stands for irrelevant questions The questionnaire also gets
inputs from industries with regard to the factors of Ease of Doing Business.

Assess: The assess section stands for evaluation of implementation status for the area by
comparison in magnitudes from the Data.= No. of Yes *100%/(Total no. of questions – no. of
N/A)

Collate: The collate section is talking about overall implementation status for the
states which is computed as = No. of Yes*100%/(Total no. of questions – No. of N/A)

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 Share: The Share stands for the sharing of result based on comparison of implementation
status across states, comparison of overall implementation status across states and for
various areas comparison of implementation status across state, specific to each area.

Every factors enabling of Ease of Doing Business in a certain areas may have greater
number of questions relative to the other areas, final result would be an indication of the
implementation status of various factors with equal weight-age.

Assessment Report on State Implementation of Business Reforms:

In 2014, Prime Minister of India requested World Bank group to support India’s effort to enhance
its competitiveness and increase manufacturing exports. India required growth in some verticals
e.g. infrastructure, capital market, trade facilitation and skills but due to high regulatory burden is
borne by business in India. The World Bank group has been working for many years with
officials of government of India. Government of India in pushing through and agreed a set of
reforms in the state. The chief secretaries of States participated in the “Make in India” workshop
and finalized a 98 points action Plan on Ease of Doing Business and subsequently the
Assessment of reforms framework and evaluation was conducted and published it in June,
2015.
The “Make in India” workshop, State government agreed to a 98 points action plan series
recommended to increase transparency and improving efficiency and effectiveness of various
government regulatory functions services for Business in India. The data was collected through
a structured questionnaire that was completed by each states and UTs government. The
evidence collected consist of rules, notifications circular, website screenshots and a variety of
other documents provided by the state government or found online to prove conclusively that
the state meets the requirements of the assessments.
The results provided a good benchmarks for initiating works toward facilitating ease of doing
business and time bound efforts would need to be undertaken to make this a long term success.
The report contained analysis on each of the 285 questions studied in the assessment, which
states are leading on each the reforms were felt by the beneficiaries of, the private sectors.
Most Reforms that have been implemented between March to June, 2015.
The outcomes of this Assessment, According to world Bank Group Enterprises survey ,
Business in India rank corruption is t he number one constraint to growth than the other factors
like electricity , finance and land just because of the lakh of regulatory framework by global
analytics. For improving India’s regulatory framework for business is increasing investment and
Government of India had also a agenda to improve Ease of Doing Business ranking and States
and UTs doing business environment simultaneously Then assessment report allowed states to
learn from another states.

Best Practices of States/UTs (2017):

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DIPP, Ministry of Commerce and Industries, released the final ranking of States in Ease of
Doing Business. The top rankers were Andhra Pradesh, Telangana, and Haryana. Jharkhand
and Gujarat stood at 4th and 5th rank respectively.

In Andaman and Nicobar, the appointment of nodal officer in districts according to constitution,
single window clearance mechanism the nodal offices used to submit the status of application to
empowered committee for taking necessary action.

In Andhra Pradesh, Government of Andhra Pradesh had been formulated to create a simplify
ecosystem by single desk policy 2015-2020 to provide clearances within 21 working days, all
the process applications are done via single desk mechanism.

In Arunachal Pradesh, Government of Arunachal Pradesh has partially implemented

computerization of commercial tax department.

In Assam, “Invest in Assam” for investors where detailed information on various land bank along
with the available infrastructure utilities are published for steady reference and portal also
published URLs and links department for quick access. The state has not implemented 288 of
the recommended reforms in the BRAP. It has not implemented any reforms related to land and
property registration, labor registration, utility connections or enforcing contracts, and performed
poorly on inspections reforms (4.65%) and single window systems (7.14%). However, it should
focus on all parameters of the assessment.

In Bihar, IT enabled service delivery in some commercial tax and labour procedure and single
window clearance through an Act.

In Chandigarh, There was seamless online portal for clearances under various pollution relation
acts; the system empowers investor to obtain clearance with no need to physically visit the
department. In Chhattisgarh implementation of Lok Sewa guarantees Act 2011.

In Delhi, E-SLAs have been defined in the time bound delivering of services under the Delhi Act
2011 wherein 360 services across various department
D-VAT department has mandated electronic registration in VAT and RC with valid TIN no. is
generated within one day.

In Dadar, The state has not reported on the vast majority of the reforms. It should focus on the
remaining reform priorities on an urgent basis.

In Daman Diu The state has not implemented 287 of the recommended reforms in the BRAP. It
has not implemented any reforms related to access to information, inspections or enforcing
contracts, and performed poorly on single window systems (3.57%) and land and property
registration (5%). However, it should focus on all parameters of the assessment.

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In Goa, Voluntary scheme for labours department empowered the officials as well as investors
in provision of services in a time bound manner. The state has not implemented 271 of the
recommended reforms in the BRAP. It has not implemented any reforms related to inspections
or enforcing contracts, and performed poorly on utility connections (7.14%) However, it should
focus on all parameters of the assessment

In Gujarat, State had introduced an Investor support system to simplify the investors exercise in
ascertain suitable location for setting up an industry provides GIS enabled layered maps of land
parcel available in the state

Haryana, has streamlined a number of reforms measures in the regulatory burden associated
with doing business.

In Himachal Pradesh the state has implemented a online solution for clearances and
authorization under various environment and pollution related acts applicable in the State. The
system also provides functionalities such as application status tracking fee calculation based on
type of industries.

In Jharkhand, The department of labour provides a on stop solution through online workflow
based backend integrated portal (CLMS), the services offered by the department. The portal
allows online registration, licensing and renewal under the various labour Acts and online
allocation of inspectors.

In Karnataka, a service which covers 669 services of more than 50 Department for provision of
services named Karnataka sakala services Act 2011, provides procedures, documents
requirement, commercial tax department have been made online to allow for e-registration, e-
filling of returns, e- payments.

In Madhya Pradesh, Government has implemented a voluntary compliance scheme whereby

separate scheme under each labour law are no longer required. Only a single return is required
to be maintained and integrated inspection procedures have been introduced, enabling joint
inspection and submission of report within 72 hours.

Maharashtra, Maharashtra industry, trade and investment facilitation cell (MAITRI) provides
guidance to investors support. It is a online department agency MAITRI works only as points of
clearing investment clearances, incentives, subsidies etc.

Meghalaya, in the state single window system has been initiated and most success and
clearances required in the states are currently being delivered manually, the department of
commercial taxes automation in 2012, backend registration for VAT, payments of Taxes, ways
bills administration, transit passes, processing of VAT returns, dealer verification commodity
search and MIS reporting have been computerized.

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Odisha’s industry’s department improved through single window system and CAF has
undertaken several reforms.

Rajasthan, Single window clearances has introduced aiming to act as a only point of contact for
all applications and provides online portal to tracking the application form and provides
information to investors on relevant rules, act, policies licensing. NO requirement of construction
permits in RIICO industrial areas for areas up to 40000 square metres.

Tamilnadu implemented an ERP based solution to integrate all applicable state taxes and
provide integration solution for registration, payments, return filling solution will be in end to end
online.

Telangana has formulated a certification named Telangana State industrial projects approval
and self-certification system(TS-iPASS) to provide more speedy processes of clearances and
approval. Self certification furnished furniture by the entrepreneur is accepted for the purpose of
granting clearances by competent authority.

Uttar Pradesh, the online system provides Department of Labor through one-stop solutions all
the services, offers several functionalities including online registration, licensing and renewal
under the various Labor Acts. The Department has mandated submission of inspection reports
under various labor acts within 72 hours of inspection.

Uttarakhand, the Uttarakhand Enterprise Single Window Facilitation and Clearance Act,
2012 has been acted for delivery of services and a single window clearance mechanism
has been set up. In addition, the State Government is undertaking several reform
measures to facilitate time bound delivery of services provide computerized service
delivery.

Manipur, Mizoram, Nagaland, Puduchery, Sikkim and Tripura the state has not reported on the
vast majority of the reforms. It should focus on the remaining reform priorities on an urgent
basis.

Similarly, Business Reform Action Plan published by Department for Promotion of Industries
and Internal Trade every year. Department gives ranking to States based on BRAP
recommendations.

State or union territory 2018 ranking 2015 ranking called

Andhra Pradesh 98.42 (1) 70.12 (2) Top Achievers

Telangana 98.33 (2) 42.45 (13) Top Achievers
Haryana 98.07 (3) 40.66 (14) Top Achievers
Jharkhand 97.99 (4) 63.09 (3) Top Achievers

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 Gujarat 97.96 (5) 71.14 (1) Top Achievers
Karnataka 97.40 (8) 48.50 (9) Top Achievers
Chhattisgarh 97.36 (6) 62.45 (4) Top Achievers
Madhya Pradesh 97.31 (7) 62.00 (5) Top Achievers
Rajasthan 95.69 (9) 61.05 (6) Top Achievers
West Bengal 94.70 (10) 46.90 (11) Achievers
Uttarakhand 94.21 (11) 13.36 (23) Achievers
Uttar Pradesh 92.87 (12) 47.37 (10) Achievers
Maharashtra 92.71 (13) 49.43 (8) Achievers
Odisha 92.09 (14) 52.12 (7) Achievers
Tamil Nadu 90.68 (15) 44.58 (12) Achievers
Himachal Pradesh 87.90 (16) 23.95 (17) Fast Mover
Assam 84.75 (17) 14.84 (22) Fast Mover
Bihar 81.91 (18) 16.41 (21) Fast Mover
Goa 57.34 (19) 21.74 (19) Average Mover
Punjab 53.92 (20) 36.73 (16) Average Mover
Kerala 44.79 (21) 22.87 (18) Slow Mover
Jammu and Kashmir 33.05 (22) 05.93 (29) Slow Mover
Delhi 31.60 (23) 37.35 (15) Slow Mover
Daman and Diu 28.69 (24) 14.58 (22) Slow Mover
Tripura 22.27(25) 09.29 (26) Aspirers
Dadra and Nagar Haveli 21.28 (26) 01.79 (32) Aspirers
Puduchery 15.65 (27) 17.72 (20) Aspirers
Nagaland 14.04 (28) 03.41 (31) Aspirers
Chandigarh 11.44 (29) 10.04 (24) Aspirers
Mizoram 03.63 (30) 06.37 (28) High Aspirers
Andaman and Nicobar Islands 01.24 (31) 09.73 (25) High Aspirers
Manipur 00.27 (32) 01.19 (32) Very High Aspirers
Sikkim 00.13 (33) 07.23 (27) Very High Aspirers
Lakshadweep 00.00 (36) 00.3 (32) Very High Aspirers
Arunachal Pradesh 00.00 (35) 01.23 (32) Very High Aspirers
Meghalaya 00.00 (34) 04.38 (30) Very High Aspirers

Note: Top Achiever :>=95% , Achievers : 90% -95% , Fast Movers : 80% - 90% , Aspirers :
<=80%

Business Reform action Plan (2019) :

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As part of exercise toward improving the business environment across the states, The DPIIT,
Ministry of Commerce and Industry and the World bank held a workshop on “Business Reforms
Action Plan- 2019” Implementation guidelines and the “Feedback Methodology”. There are 80
recommendations under the BRAP-2019. It is informed that feedback of users would be the
main criteria of ranking under BRAP-2019 and feedback were taken on all the implemented
reforms within a deadline are February 28, 2019. India is improving the business climate is a
dynamic and evolving process. Now India is Standing on 77th rank in all over the world by
implementing the World Bank’s recommendations during last three years and India States are
Implemented 90% of recommendations given by DIPP in 2017- 2018.

The reform suggested by the DPIIT for States and UTs in 12 areas and included with
Online Single Window System for approval, maintenance of land Record, Central
Inspection Framework, Tax enablers, Labour regulations and electricity connections.

The Objective of this Action Plan Exercise is to create conducive business environment by
simple regulatory structures and creating an investor friendly business climate by cutting down
the excess of regulations by States.

The direct and Indirect Taxes reforms of BRAP 2019 will continue to facilitate and expedite the
process of Ease of Doing Business in India. The government is also trying to facilitate trade and
industry in the country so that the momentum of the growth continues to move up, said Finance
Minister of India.

Feedback Methodology :

India wants to be a leading nation in terms of doing Business, According to vision and measure
effectiveness of reforms and feedback. Subsequently, for BRAP 2019, DPIIT has decided to
assess States/UTs based only on the feedback received users of services. The Classification of
States and UTs are only based on the feedback Methodology and required to give evidences
and feedback always sees on the feedback Score.

 The feedback obtained either through a face to face or telephonic interview with the
respondents.
 The list of Users specific points of the online system will be sent by State to DPIIT (Dec 1,
2018- Mar 31,2019).
 During the current year, Feedback on a point for State/UT will be identified in the State/UT
are collected only and recognized and implemented either (2017-18)
 States and UTs which have implemented a reform after deadline under BRAP 17-18 (31 st
October 2017) or the reform was not accepted as implemented.
 Government and administrations are required to submit list of users by 10 April 2019.
 No feedback will be supposed to done if it is in less than 20.
 DPIIT develops user category wise questionnaires to obtain feedback. On the basis of
answers received in the feedback interview.

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 If less than 70%respondants inform that they have not felt a specific reforms, no will be
awarded.
 The overall Score will be decided by the following formula : Percentage of implementation =
Total score obtained x 100/(Maximum marks- NA marks)

Now, most Important Initiatives by State Governments of India for facilitation for Investors for
granting various types of Services e.g. Licenses, Certifications, Registrations, Amendments,
Approvals which are required stream the businesses of Investors (Single Window Clearance
System), Investment promotion & Ease of Doing Business.

The Government of Uttarakhand has been very keen on bringing in reforms and policy
measures for the industries. It has also been closely engaging with the industry associations for
their inputs, while formulating policies. However, it should not be short-lived. In addition, these
reforms need to be geographically overarching in the State, and should not be limited to a few
districts. The reforms also need effectively correspond with capacity building of MSMEs. The
State’s performance has been commendable in terms of bringing in Ease of Doing Business
reforms amongst other Indian states, as per the DIPP rankings. However, there are certain
limitations, owing to actual implementation of the reforms. Cross-learning sessions between
various states in India, could be a helpful initiative in this regard. In addition, Uttarakhand needs
to effectively leverage upon its resource potential and indulge into effective branding, for
bringing in more investments in the State.

Ease of Doing
Business in

UTTARAKHAND
The state of Uttarakhand was formed in November 9, 2000 located at foothills of Himalayan
mountain ranges and place of Chardham (Kedarnath, Badrinath, Gangotri and Yamunotri).
Dehradun is the capital city of Uttarakhand. State has emerged as significant destination for
investments manufacturing Industries, Tourism and Infrastructure. The State emphasises of
their fullest potential. The government of Uttarakhand has undertaken various policies &
Incentives to encourage flow of investments in the State. The Investment of investable surplus,
the Government has taken a number of major initiatives to upgrade the infrastructure & G2B
Services delivery in Uttarakhand to boost economic growth. State has nearly 272 large, 49000
MSME Enterprises with an investment of over Rs. 45000 Crores providing direct employment to
more than 350000 persons. There are major corporate like Heromoto Corp, TATA Motors, M &
M, Hindustan Unilever, ITC, C&S Electric Company, Godrej, VIP Industries, Kirby Building
System India Ltd, Britannia, Dabur, Bajaj, Ashoka Leyland Drugs etc. and many IT & ITeS
companies are functioning in the State.

The State Uttarakhand expected to attract maximum investment flow due to positive action
taken by Government. The initiative of “Single Window Clearance System” with time line for
issue of NOCs, licenses, availability of suitable industrial land for setting up industries and highly
qualified technical man power from many education Institution in the area of Medical,
Engineering, Arts, Science, Polytechnic Colleges and ITI s and Training institutions.

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 Factors that have made Uttarakhand a favourable destination for Investors:
 It is the first State in India to have developed a Tourism Development Board through
legislation.
 Uttarakhand is encouraging development of Industrial parks, Industrial estates, and growth
centres in the State.
 There is an abundant base of highly skilled human resources at affordable rates.
 In Uttarakhand, there are many fiscal benefits offered on investments. These benefits
include Concessional Industrial Package that is furnished by the State and the central
Governments.
 A dedicated IT Park is expected to be established in Dehradun, the capital city of
Uttarakhand.
 Uttarakhand has successfully attracted key industrial players including Mahindra &
Mahindra, atlas Cycle Ltd., Electronics of India Ltd.

The State has vast pool of natural resources that adds to its attractiveness as a hot destination
for investors, especially for the forest and tourism – based industries. The Uttarakhand
government has setup the State infrastructure & Industrial Development Corporation of
Uttarakhand Ltd. (SIDCUL) to conceive state’s industrial development. This corporation is a
Single Window Clearance System for the state’s various programs and schemes related to
industry. The government of Uttarakhand has undertaken various policies & Incentives to
encourage flow of investments in the State. The Investment of investable surplus, the
Government has taken a number of major initiatives to upgrade the infrastructure & G2B
Services delivery in Uttarakhand to boost economic growth.

Uttarakhand has made a remarkable progress vis-à-vis the ranking done by DIPP and the WB
in 2015, ever since it was ranked 23rd. The credit for its jump to the 9th position goes to the
personalities leading the Ease of Doing Business agenda in the State, who were pro-active in
introducing the reforms. The key institutions/Government Departments responsible for
facilitating Ease of Doing Business reforms in Uttarakhand include the Directorate of Industries
at the State level and the District Industries Centers (DIC) at the district level. The Directorate of
Industries plays the prime role in providing an investor-friendly environment in the State through
implementation of policies and programs and in setting up a comprehensive framework of
procedures, in coordination with other state departments, to be followed by the industries while
establishing/expanding their businesses. On the other hand, DICs played a key role in
facilitating Ease of Doing Business for the Micro, Small and Medium Enterprises (MSMEs) and
in coordination between various Government Departments at the district-level for granting
approvals/clearances as well as for monitoring of the entire process. There is a major thrust by
the Uttarakhand Government on strengthening the Information and Communication Technology
(ICT) infrastructure in the State and is thus attracting investments in the ICT sector.4 Also, in
order to boost the development of Tourism Sector in the State, the Government has
collaborated with YES Bank to formulate the new tourism policy. The Government has already
signed several Memorandum of Understanding with investors for projects in Tourism sector, at
the Inaugural Incredible India Tourism Investors Summit 2016.5 Further; the Government has
introduced a few unique policies to attract investments in the State. The MSME Policy and the

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Startup Policy has been formulated to provide a supportive regulatory environment to MSMEs
for doing business. Inputs from industry associations in the State were taken while formulating
the policy. Several incentives have been introduced for the industries through the Policy. In
addition, the Chief Minister has introduced the Mukhya Mantri Gram Swarozgar Yojana for
industries based in rural areas with investment worth 4-5 lakh. The Government is also
proactively working to encourage women entrepreneurs in the State and has introduced a new
policy for women entrepreneurs

Single Window Clearance System

The Single Window Clearance system was formed as a consequence to “The Uttarakhand
Enterprises Single Window Facilitation and Clearance Act 2012” to provide time bound licenses,
Permissions and sanctions for the establishment of Industry in State of Uttarakhand.
The Single Window Clearance System is one-point interface portal for Investors and
Stakeholder Departments. It is the medium of Information of Services for the Investors e.g.
Government Policies, Incentives, Schemes and Availability of Infrastructure.
In Ease of Doing Business there is requirement of single Window Clearance System for
reducing cost and time and facilitate to streamline to start a business to Exit a Business. With
the help of single Window clearance system The Respective Person can do process as simply
as possible and can get much more knowledge than the past time. It is also benefit able for
Government. With the help of Single Window Clearance System Government can analyse the
primary data which experienced for the government and Business person for all large Business
as well as MSMEs.

Ease of doing business needs single window system too. It gives facilitation mechanism foe
investors mainly It is a medium of Information for investors on Government policies, Incentive
Schemes and availability of Infrastructure and build sector wise investment in the States and
Government policies.

Key Benefits:

 Single Window Clearance system is giving some benefits for Uttarakhand and it gives
system to monitor applications with the minimum paperwork
 Portal can be Access from across the Globe
 Through File Tracking is also increasing Departmental ownership.
 It provides all alerts and notifications to investor by login into their User ID
 It gives facility to Online Tracking
 Single Window System gives Project Details 1. Description 2. Infrastructure 3. Investment 4.
Employment 5. Application form
 It provides help to investors for land, water and Power
 It disseminates about queries with regards to Infrastructure facilities, government policies,
and incentives schemes.

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 It facilitates for New and existing both enterprises for required Licenses, NOC during their
respective stage of Investment lifecycle i.e. Pre- establishment, Pre-operations and Post-
operations Stage.

Uttarakhand Enterprises Single Window Facilitation and clearances Act, 2012

The Single Window Facilitation and Clearance Act was approved by Government of
Uttarakhand for provide necessary time bound licenses, permissions and sanctions to the
establishment of industry in the State of Uttarakhand.Constitution and Jurisdiction of state
Empowered Committee and District Empowered committee
 There are two competent Authorities in State according to capital in State and Jurisdiction
limits according to Investment.
 If capital Investment by Investor is less than ten crore rupees then the competent Authority
shall District Empowered committee and if more than ten crore rupees then competent
Authority shall State Empowered Authority.
 Notification is floating by State empowered committee at state level and District empowered
Committee at district Level
 Respective member shall meet personally attend meeting and suppose he is not able to
meet then he/she has to transfer his/her responsibility to senior level officer to attend the
meeting.

State Empowered Committee

Chief secretary, UK Chairman

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 Upper Chief Secretary, Development commissioner Member
Chief secretary, Medical & Health Member
Secretary of Revenue Member
Secretary of forest and Environment Member
secretary of Energy Department Member
secretary of Finance Member
secretary of Excise Department Member
Secretary of Labour Department Member
Secretary of Transport Department Member
secretary of Planning Department Member
Secretary of Technology Department Member
Secretary of Tourism Department Member
Secretary of Directorate of Industries Member
Public welfare Secretary Member
MSME secretary Member
Management Director SIIDCUL Member
SLBC Member
Secretary Industrial Development Member

District Empowered Committee

District Management Chairman
Superintended of Police Member
Chief development Officer Member
Chief Medical Officer Member
District welfare Officer Member
Assistant commerce an Tax officer Member
Chief fire Brigade Officer Member
Commercial Bank Officer Member
Regional Officer, Pollution Board Member
Labour Department Member
Asst. Director Member
District Tourism Officer Member
Khadi and Rural Industries officer Member
District Development Authority Member

State and District empowered Committee shall examine the proposal for setting up any
enterprises and shall take decision and communicate decision to Entrepreneur and Government
Department.

 Nodal Agency : The State Udyog Mitra cell in Directorate of Industries.

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 Power and functions of Nodal Agency: Suppose Competent authority has failed to Process
and Dispose of such application within a Period then Nodal Agency has the power to
consider and dispose of application for the permission under Uttarakhand law.
 It Assist the investor for Application.
 Help the investors to give status Monitoring.
 It receives Application for Relaxation, Exemptions, concession and Take Comments from
respective Authority.
 Nodal agency has to show checklist into dashboard for facilitate the NOC, Approvals,
Warrants, permission, Approval, License etc.
 After the proceeding, the applications Nodal agency shall prepare a Register and end of the
Working day, Register shall do inspect.
 Nodal Agency has also the responsibility to communicate between Empowered Authority
and Investors
 Common Application Form: Combine Application form is Integration of all the forms, which
are, requiring starting the procedure For Starting a Business. It provides simplification in
starting a Business and takes required Licenses, Non objection certificate, Approvals an
Consent from different Department or Boards within a period prescribed by Government of
Uttarakhand.

Common Application Form (CAF) provides “In principle Approval” - common

information such as applicant’s name, project details, address etc. and common
documents are required to be provided only once

Common Application Form (CAF) “In Principle Approval” Investors have to fill the all
data & upload all the documents for taking Approval for the Establishment of Business &
for operations of a Business

 Self certification :
Every Entrepreneur shall duly self-attest the certification. Documents by Notary and every
department shall accept the Application with self attested documents for further procedure.
Procedure for filling Disposal of Application:
Desired Entrepreneur shall fill the Combine Application Form (CAF) prescribed by Uttarakhand
Government. Entrepreneur shall submit self-attest documents along with fees and Evidences
electronically or physically.

 Fees :Small: Rs. 1000, Medium: Rs. 5000 and Large: Rs. 10000
 According to Reservation act SC/ST/Women/Physically disabled to 50% discount existed in
fixed Rates of Fees.
 If competent Authority finds a improper filling of CAF then Nodal Agency shall help to fill the
form to Investor or Entrepreneur.
 Power, Procedure, jurisdiction and constitution of Nodal Agency and State
Empowered/district Empowered Committee : For facilitation Nodal agency shall show the
checklist of Approval, NOC, Warrant, consent etc into Single Window clearance system.
 After Acknowledgments Nodal agency shall do entries into Register.

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 Competent Authority shall provide comments sought by the Nodal Agency within a period if
they could not they has no authority to interfere NOC or Licenses.
 If competent Authority thinks it is necessary to ask for any additional information from the
applicant within a period as prescribed.
 The applicant directs shall furnish the additional information sought to the competent
Authority within a period.

 The Status report of the Applications for clearances shall be plashed before the State
empowered committee, as the case may be.
 To reviewing the licenses, approval State/District empowered committee a meeting shall
organize in every last Friday of month.
 Deemed Approval : In the case in which Application fulfils all prescribed eligibility and term,
the concerned Departments or Authorities have delayed issuing approval/ clearances in that
case such clearances shall be deemed to have been issued.
 Time limits for processing of Application: Time limits for processing the Application in
departments and authority have prescribed a time limit under Uttarakhand law, policy or
orders for time being in Force.
 Obligations of concerned Authority: The competent authority has to forward Application to
Nodal Agency within a period and shall provide comments sought by the Nodal agency
within a period prescribed by Uttarakhand Law. If delayed in disposing of application for
clearances then should take action against it within 15 days.
 Penalty: If competent Authority finds failure in certification and then State empowered
committee shall claim for fine of Rs. 5000 in first time and then second time Rs.10000.I have
studied Single windows of some other states and do a benchmarking of those to improve
Single Window Clearance System.

There is enormous number of services, That Investor have to take or take approval from Stake
holder Department for Standing the Business or Establishment or Operating the Business.
There are 215 Services on boarded in Single Window Clearance System with 19 Stake holder
Departments

Sr. No. Department Name

1 Department Of Labour
2 Department of Revenue
3 Directorate of Horticulture and Food Processing
4 Directorate of Industries
5 Electrical Inspectorate
6 FCS - Legal Metrology Department
7 HD - Haridwar Roorkee Development Authority
8 HD - Mussorie Dehradun Development Authority
9 Information and Public Relation Department
10 Public Work Department
11 State Industrial Development Authority
12 State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd.

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 13 Tourism Department
14 Urban Development Directorate
15 Uttarakhand Environment Protection and Pollution Control Board
16 Uttarakhand Fire and Emergency Services
17 Uttarakhand Forest Department
18 Uttarakhand Jal sansthan
19 Uttarakhand Power corporation Ltd.

The all Services have their own Timelines, Validity, SOPs their Category (Pre- Establishment,
Pre- Operation, Post- Operation) , the important Checklists (for Scrutiny) etc. There are Some
SOPs were uploaded in Single Window Clearance Systems.

For Investment in Uttarakhand or any State MSME Policies are playing very crucial role for the
State, MSMEs not only play crucial role in providing large employment opportunities at
comparatively lower capital cost than large industries but also help in industrialization of rural &
backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of
national income and wealth. MSMEs are complementary to large industries as ancillary units
and this sector contributes enormously to the socio-economic development of the country.

MSME accounts for more than 45% of total manufacturing output of the country, contributes
around 9% to GDP and accounts for more than 40% of total exports of the country. 
There are total around more than 40 million such enterprises in India (which is 2nd largest after
China) it employs over 11 Crore people in India. 

Benchmarking of Single Window Clearance System

There is the benchmarking of Single Window Clearance System of several states in parameters
like Availability of Mobile App, Live Chat, Land Bank, Separate Feedback, and Ease of Doing
Business Information

Mobile Land Separate EoDB

Parameters Live Chat
App Bank Feedback/Grievance Information

Uttarakhand
SWCS No Yes Yes Yes No
Gujarat IFP No Yes No Yes No
Madhya
Pradesh No Yes No Yes No
Telangana No No No Yes No
Tamilnadu No No No No No
Andhra Pradesh No No No Yes Yes
Rajasthan Yes Yes No Yes No

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 Maharashtra No Yes No Yes Yes
Uttar Pradesh Yes No No Yes Yes
Jharkhand No Yes No Yes Yes

Some more parameters like description Investors life cycle, Start Up, Raw Material Allocation,
Link with BIS (Bureau of Indian Standard), Videos and number of Services in Single Window
Clearance System of Uttarakhand.

According to these parameters Uttarakhand Single Window Clearance System should make
Mobile Application for Investors which will make them easy to use.

Raw
Investor Link with No. of
Parameters Start-Up Material Videos
life cycle BIS Portal Services
Allocation
Uttarakhand
SWCS Yes Yes No No No 215
Gujarat IFP No No No Yes Yes 61
Madhya
Pradesh Yes No No No No 28
Telangana No No Yes No No 107
Tamilnadu No No No No No 38
Andhra
Pradesh No No Yes No No 25
Rajasthan Yes No No No No 98
Maharashtr
a No No No No No 26
Uttar
Pradesh No Yes No No No 23
Jharkhand No No No No No 216

Investors will get notification on their smart phones. Uttarakhand Single Window Clearance
System should get Raw Material Allocation which is taken by Telangana and Andhra Pradesh.
Telangana and Andhra Pradesh both is the topper in Ease of Doing Business (2019) which is
published by DPIIT. Raw Material Allocation will facilitate investors to get Raw Materials & It will
make good connections Investors and raw material suppliers.

Uttarakhand Single Window Clearance System can provide Videos. Which will describe how to
Performance of States
fill the 120
Common Application form, How to register into Single Window Clearance System etc.
98.42 98.33 97.96 97.31 94.21
100 92.87 92.71 90.68
Uttarakhand
80 has
70.12 some good practices
71.14 in Ease of Doing Business like Single Window
62
Clearance
60 System e.g.42.45 Land Bank and Maximum Number 47.37of Services
49.43 which
44.58
indicates State is
doing very
40 well than other States. The State jumped from the rank of 23 to rank 112018 withranking
gain of
13.36
80.85%. 20 2015 ranking
0
h a t h d h ra u
es an ra es an es ht ad
d g uja d h d s N
ra la
n G Pr
a ak Pr
a
ar
a il
30| 4 5 ra P Te a t t ar r ah am
hy U ta T
dh Ut M
An ad
M
 Micro, Small and Medium Enterprises
The Enterprises engaged in the manufacture or production of goods pertaining to any industry
specified in the first schedule to the industries (Development and regulation) Act, 1951) or
employing plant and machinery in the process of value addition to the final product having a
distinct name or character or use. The Manufacturing Enterprises are defined in terms of
investment in Plant & Machinery.

Micro, Small Medium Enterprises development Act was established to provide for facilitating the
promotion and development and enhancing the competitiveness of Micro, Small and Medium
enterprises.

Manufacturing Enterprises
Sr.
Investment in Plan & Machineries (INR) Category
No.
1 Not Exceeding 25 Lakh Micro
2 More than 25 Lakh but less than 5 crore Small
3 More than 5 crore but less than 10 Crore Medium
     
Service Enterprises
Sr.
Investment in Equipments (INR) Category
No.
1 Not Exceeding 10 Lakh Micro
2 More than 10 Lakh but 2 crore Small
3 More than 2 crore but less than 5 crore Medium

The Act aims to provide for the establishment of a National, small and Medium Enterprises
Board and making recommendations on the policies.

31| 4 5
If a micro or small Enterprises files a memorandum with District Industries Centre (DIC) on its
area then it gives benefits e.g.

 Financial Availability from Banks

 Stamp Duty benefits
 Concession in Electricity Bills
 Reservation Policies for Women, Schedule Caste, Schedule Tribes, PwD peoples
 Reimbursements of ISO and other quality Inspections Process
 Industrial Land Availability, Cluster development
 Fiscal Incentives & Concession
 Optimum use of Technology and relevant Resources ( IITs, IIMs, Technical Universities).

Uttarakhand MSME Policy

Government of Uttarakhand has launched the “MSME Policy, 2015” for promotion Investments
in the Micro, Small and Medium Enterprises.
It also aims to take optimum use of recourses for the people who want to be self employed and
generating more employment opportunities especially in Hill regions and Promoting Self
Employment. It also aims for development of cluster, Industrial Land for MSMEs
This policy provides Packages and Incentives to start a new business and streamlines a pre-
established businesses and fund flow from Banks, Financial Institutions. Fiscal Incentives and
other benefits of this policy shall be available for that businesses which are eligible for MSME
criteria and only for 10 years means till 2025 and the policy shall remain till 31st march 2020.

Categor
Included Regions
y
A  Whole Districts of Pithoragarh, Uttarkashi, Chamoli, Champawat, Rudraprayag
and Bagheshwar
 District of Almora.
 All hilly development blocks of Districts Pauri garhwal, Tehri Garhwal. (Excluding
B regions under category B+)
 All hilly development blocks of Districts Nainital and Dehradun. (Excluding
regions under category B+)
 Kotdwar, Sigaddi and adjoining plain regions of Dugadda development block of
Pauri Garhwal.
 Dhalwal, Muni Ki Reti, Tapovan and adjoining plain regions of Fakot
B+
development block of District Tehri Garhwal.
 Kotabagh development block of District Dehradun.
Plain regions of Kalsi development block of District Dehradun.
 Regions located above 650 mtrs from sea level Raipur, Sahaspur, Vikasnagar
and Doiwala development blocks of Districts Dehradun
C
 Ramnagar and Haldwani development blocks of District Nainital

 Whole Districts of Haridwar and Udham Singh Nagar

D  Remaining area of Districts Dehradun and Dehradun and Nainital( which are not
included in Category 'B' , 'B+' and 'C')

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 Uttarakhand MSME Policy aims for Infrastructural support e.g. Establishment of Land Bank,
Infrastructural development fund for MSMEs, Special In Special Industrial Estate for
MSMEs, Establishment of New Industrial Estates, establishment of Multi – Storied Estates,
Up gradation of Existing Industrial Estates, Establishment of Vendor and Ancillary Parks and
Intervention under cluster development Schemes
 Institutional Support, Simplification and Enactment e.g. Single Window facilitation act,
entrepreneurship and Skill development cell, Vendor/ Ancillary and Cluster Development
Cell.

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 Fiscal Incentives
Special
Mandi
Capital Interest VAT and SGST Stamp State Internet Usage
Category Electricity Bills Charg
Subsidy Subsidy Reimbursement Duty Transport Reimbursement
es
subsidy
Abov
e
Up to 100 100
        KVA KVA      
A
100% for
7% of
40% (Max 40 10% (Max 100% for first 5 yrs first 5 yrs &
100% 60% Annual 50% 100%
lakh) 8 lakh) and 90% thereafter 75%
Turnover
thereafter
5% of
35% (Max 35 8% (Max 6
B 100% Annual 50% 100%
lakh) lakh)
Turnover
100% for first 5 yrs 100% for first 5 yrs
5% of
and 75% thereafter & 60% thereafter
35% (Max 35 8% (Max 6 Annual
B+ 100% 50% -
lakh) lakh) Turnover or
Max 5 lakh
30% (Max 30 6% ( Max
C 0 100% - - 0 50% -
lakh) 4 lakh)
15% (Max 15
D 0 0 50% - - 0 50% -
lakh)

Promotion of self employment, States government will introduce CM’s self employment scheme on the pattern of erstwhile Prime
Minister Rojgar Yojana Micro Enterprises will be picked smaller loans up to Rs. 5 lakh for manufacturing & 3 lakh for service sectors
respectively with margin money of 15% to 25% and 25% to 35% in rural area.

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 Benchmarking of MSME Policies
Incentive Andhra Madhya
# Maharashtra Telangana Gujarat Karnataka Uttar Pradesh Tamil Nadu
categories Pradesh Pradesh

100% 100% 100% 100% 75% - 100% 50%-100% 50%

reimbursemen reimbursement reimbursement reimbursement 100% exemption (depending on Exemption
Stamp t (dependin the district)
1 Duty g on the
(In A & B
Exemption areas - offered Zone)

only to IT & BT
parks)

IPS will be MSEs- 100%; 5 MSEs- 100%; 5 Percentage of Not Reimbursemen No clarity or
Investmen calculated at years from the years from the Net VAT applicable t of net amount notification post
t the rate of date of date of reimbursement deposited in GST regime
promotion 60% to 100% commencement commencement * State’s account
subsidy/ of Net Stat of commercial of commercial visa-a-vis
VAT/CST / goods and production production share of the
GST Service Tax state under
for the first Up to GST
sale within 25%
2 Taluka 1 90% Micro: 100%
Maharashtra dependin
  State* (7 to 10 Medium - 75%; Medium - 75%; Taluka 2 80% g on Zone Small: 90%
years as per 7 years from 7 years from
eligibility) Medium: 60%
the date of the date of
commencement commencement
  of commercial of commercial Taluka 3 70%
production production

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 Incentive Andhra Madhya
# Maharashtra Telangana Gujarat Karnataka Uttar Pradesh Tamil Nadu
categories Pradesh Pradesh

Power For new units    

@Re.
tariff (other than @Re. 1/unit;
1/unit;
subsidy area A)

@ Re 1/- or @ For 5 years For 5 years

Re 0.5/- for 3 from the date from the date
years from of of
date of commencemen commencemen
commercial t of commercial t of commercial
production production production
100%
(Depending on 100 %
    exemptio To all new Electricity Tax
Taluka/ area) exemption
n ( For 33 industrial units Exemption
100 % for a
Electricity eligible new KV - 5 set up in the varies with
exemption for period of state (including investment
duty MSMEs in C, years;
a period of 5 7 years,
132 KV - units producing made in fixed
4 exemption D & D+ areas - years Zone 1 (6
7 years; electricity from assets for 2
exemption years -
from electricity 220 KV - captive power years to 5
Zone 2) plants for self- years
duty during 10 years)
use)
eligibility
period    

36| 4 5
37| 4 5
 START- UP

Startup means an entity, incorporated or registered in India not prior to five years, with annual
turnover not exceeding INR 25 crore in any preceding financial year, working towards
innovation, development, deployment or commercialization of new products, processes or
services driven by technology or intellectual property and not formed by splitting up, or
reconstruction, of a business already in existence.
Startup shall be eligible for tax benefits only after it has obtained certification from the Inter-
Ministerial Board, setup for such purpose.

1. A new product or Service or Process

2. Significantly Improved Existing Products or Service or Process

Entity:
Private Limited Company (Under The Companies Act, 2013) or a Registered Partnership Firm
(under The Indian Partnership Act, 1932) or Limited Liability Partnership ( under The Limited
Liability Partnership Act, 2008)

Inter ministerial Board:

An Inter-Ministerial Board setup by DIPP to validate the innovative nature of the business for
granting tax related benefits Approval from the Inter-Ministerial Board shall not in any manner,
limit or absolve the entity from any liability incurred in case of any misrepresentation/ fraud
arising from submission of such application and/ or supporting such application.

Life Cycle of Start UP:

There are the Startup lifecycle provided by the DIPP along with the key requirements at each
stage.

Stage 01: Idea formulation, Idea Validation, Prototype, Minimum viable Product
Stage 02: Early Revenue, Self Funding, Fund from Friends & Family, Angel Investments
Stage 03: Early Transaction, loyal customer base, Series A, B round of Venture Capital (VC)
funding
Stage 04: Repeatable user acquisition Process, New growth Channels, Series C, D, E rounds of
Venture Capital funding, Exit, IPO, M&A( Merger & Acquisition)

Idea stage:
The entrepreneur discovers a problem or identifies an opportunity that has a business potential.
Mentorship support for entrepreneur is critical at this stage to ensure the business related
activities are defined well and subsequent business plan is generated. At this stage, there is not
much requirement of funding and typically, founders tend to self-finance.

Pre-seed or validation stage:

Entrepreneur builds a probable solution in the form of “a proof of concept” or “prototype” with
relevant assumptions. These assumptions are validating with initial small sample of target
audience for the product or service related feedback and response. The funding requirements
are generally met by self-financing (boot strapping), raising money from investors or
Government grants for research or prototype development. Access to incubator and mentors at
this stage helps in identifying and approaching early customers, building minimum viable
product and identifying product-market fit.

38| 4 5
 Seed or Early traction stage:
Based on the feedback from early customers and mentors’ insights, demand for product or
service is identified. The customer retention rate confirms the early traction of the company and
its product. Startup acquires more customers by actively seeking funds from crowd funding
agencies, angel investors or networks, incubators and seed grants from Government. The
financing support at this stage supports the Startup in escaping the “valley of death” for a period
spanning from when a Startup firm receives an initial capital contribution to when it begins
generating revenues.

Growth or scaling stage:

In this stage, most of the processes define and the business is firmly established. Entrepreneurs
build a repeatable user or customer acquisition process, identifies channels of market growth
and look for opportunities to expand the business to different geographies or markets. The
expansion is backed by scale up funding support from institutional investors such as Venture
Capitalists (VCs) and acceleration programs. .

Maturity or Exit, IPO, M&A stage:

Many investors, promoters and founders look at opportunity to exit and realize profits either
through partial or full sale of the business entity. The next set of investors may be identified as
another entity in the same space looking to acquire the business and gain market share, or in
some cases, Startup may issue a public offer or entirely sell the business. Bank funds, private
equity funds and IPO investors play a major role in financing such large deals for Startups.

Incubators:
An Organization designed to accelerate the growth & success of entrepreneurial companies
through an array of business support resources and services that could include physical space,
capital, coaching, common services & networking connections. Incubators are also important
partners in the overall Startup ecosystem, which supports and accelerates successful
development of businesses.

Government policy & regulatory framework:

Central and State governments are doing exercises actively in Startup ecosystem development.
The key objectives of the Government are as follows:
 Entrepreneurial activity to accelerate job creation
 Create enabling environment by reducing regulatory burden and introducing new policies
 Build capacity through infrastructure creation and training
 Provide funding support and fiscal incentives
 Facilitate all members of the Startup ecosystem to collaborate and connect

Infrastructure support and Incubators:

Incubators are important partners in the overall Startup ecosystem, which supports and
accelerates successful development of businesses. It provides array of business services,
technology and infrastructure support including office space, mentoring and funding (equity or
debt) through grants or investor networking opportunities.
 As per the data from DIPP, in 2018 India has about 270 incubators and accelerators
managed by academic institutes, corporate, and Government. Central and State
Governments support majority of these incubators through capital and operational grants
under several schemes.

39| 4 5
 As per a study by National Association of Software and Services Companies (NASSCOM) in
2017, 40% of all incubators and accelerators are concentrated in Bangalore, Mumbai and
Delhi-NCR.

 In the past 3-5 years, many large multinationals have set up incubator and accelerator
programs. Corporate are seeking the latest in innovation and offering technical expertise to
take Startup solutions to the next level.

 Large corporate have collaborated with Government and academia at T-Hub, Hyderabad.
International and Indian Corporate also run their dedicated incubator and accelerator
programs in India.

Funding and Finance:

Investors play a pivotal role in bridging the funding needs of a Startup. They nurture, invest and
mentor Startups to make measurable returns and typically remain invested with a Startup for
minimum 3-4 years. Depending on the stage of a Startup, the investor types are:

 Angel Investor: An angel investor is a person with high net worth individual who provides
initial capital to the Startup at its infancy stage.

 Early stage investor: Institutional investors come in at early growth stage of a Startup when
the product is ready and it has been validated. This money is used to fuel business

Uttarakhand Start Up

Uttarakhand has performed commendably well in the State Startup ranking exercise 2018. The
State launched its Startup policy in 2018 to accelerate the development of Startup ecosystem.
These efforts have recognized by State and State of Uttarakhand has being acknowledged as
an ‘Emerging State’ by Department of Industrial Promotion in the State Startup Rankings 2018.

 Government of Uttarakhand launched its Startup policy in February 2018.

 The vision of the policy to foster an ecosystem for nurturing the spirit of Entrepreneurship in
Uttarakhand, thereby positioning the state as the most Startup friendly state in India.
 Nodal department for Startup is Department of Industries, Government of Uttarakhand and
Nodal officer for Start Up in Directorate of Industries.
 Government of Uttarakhand has appointed a Startup Cell to ensure monitoring,
documentation and implementation of Startup initiatives. Apart from the Startup cell, a
Startup council and Startup task force has been constituted. 4 members have 2 been
appointed to manage the cell for supporting the development of Startup ecosystem in State.
The team composition is as follows:

1. Director, Department of MSME

2. Deputy Director, Department of MSME
3. Two Start Up Consultant

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 Benchmarking of Start Ups

Benchmarking of Start Ups

Land
Monthly Marketing Patent cost Allotment/Lease Stamp Duty
Parameters Mentoring
Allowance Assistance Reimbursement Rental Reimbursement
Reimbursement
50%
Andhra reimbursement Max 80% Rebate of
       
Pradesh 100% Land cost.
reimbursement
Premier Institutions&
Up to Rs. Facilities of
Gujarat       Universities will
10.00 lakh Institutions
Mentor
Himachal 50% less for cat. B 3% Stamp Duty
       
Pradesh &C Reimbursement.  
Premier Institutions&
Universities will
2 lakh-Domestic 100% Stamp Duty
Madhya up to 50% Max Up to Rs. 10 25% less for 3 Mentor
5 lakh- in IT Park &
Pradesh 5 lakh Lakh (25%) years Reimbursement of
international Industrial Area
Max.2 lakh for 3
Years
100% (max. 2
30% per
Lakh) - Domestic 25% less for 3 100% Stamp duty
Telangana   cost (Max 5 3 Shift Operations
(Max.10 lakh) - years Reimbursement
Lakh)
International
Premier Institutions&
Uttar 5 Lakh per year Up to Rs.
      Universities will
Pradesh for 5 years 10.00 lakh
Mentor
Up to 100% (1
Up to Rs. Incubators will give
Lakh) - Domestic
10,000/- per Max Rs 7.5 Max.2 Lakh
Uttarakhand    
month for 1 lakh.  till 3 Years for
(Max. 5 Lakh)-
year monthly operations
International

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 In ‘Incubation Support’, ‘Seed Funding Support’, ‘Angel and Venture Funding’,
‘Easing Public Procurement’ and ‘Awareness and Outreach’ pillars, State performance
is below par when compared to its peers. State performance has not been up to the national
average. The State may prioritize initiatives or policies in providing support in
abovementioned pillars. Some of the good practices may be refer to improve overall
performance in the next round of ranking. Above performance has contributed to the State’s
positioning as an ‘Emerging State’ in the ranking exercise. Detailed analysis of the State
performance in each pillar has been provided in following chapter of this report.

Each of the 7 pillars of ranking framework for individual axes and the overall performance of the
State in each pillar has been indicated on respective axes.

 State Government notified Uttarakhand Startup Policy 2018 on 22 February 2018. The State
has laid following objectives as part of the policy:

 Facilitate and nurture the growth of at least 500 new Startups in Uttarakhand Facilitate
access to investment for aspiring and existing entrepreneurs

 Create a spirit of entrepreneurship by changing the present trend of job seeking to job
creating

 The State defines ‘Startup’, which is in line with the definition prescribed by Department of
Industrial Policy and Promotion (DIPP), Government of India.

Dedicated Start Up Portal:

The State has developed a Startup portal for State based Startups. The Startups can get
information through the startup portal. The portal is accessible www.startuputtarkhand .com

42| 4 5
The portal provides important information or updates of the activities planned in
Uttarakhand Startup ecosystem. Secondly, it also brings together the entire Startup
community on a single platform by creating a mentor network, listing investors, Startup
outreach events, etc.

CHAPTER 06 :Value Chain Analysis of Automobile Sector

Value Chain Analysis is process where a entity identifies its primary and support activities that
add value to its final products and then analyze these activities to reduce costs or increase
differentiation.

Value Chain represents the internal activities a entity engages in when transforming inputs into
outputs

Value Chain is used only for entity’s Competitive Advantage for Investment Promotion

Uttarakhand has a good number of automobile and auto-component manufacturers in the state.
Pantnagar and Haridwar have evolved as important auto hubs in the Northern India

 Most of the Auto component units are contract manufacturers and are spread across the
state with majority of them located in the Integrated Industrial areas of Pantnagar and
Haridwar

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 Automobile Sector Value Chain

Tw o Four Commercial Vehicles Three

Wheelers Wheelers Wheelers

Motor Cycle Utility Vehicle Commercial

Light, Medium & Heavy
Cars
Scooters Multipurpose Vehicle Earth Movers
Passenger

Operations Logistics sales Regulatory Authorities Maintenance

• Regional transport office • Authorised Workshops

• Road Connectivity •Distributors
•Electrical Vehicles •ICE
• Local Workshops / Mechanics
• Rail •Retailers
OEMs Connectivity
• Spare Parts & Accessories
Outlets
Ancillary Units

Assembly

Accessories & Others

Connectivity Land & Infrastructure Electricity Water Govt. Policy and Incentives Man Pow er

•Influencers & Enhancer

Government Government
Promotional Activities Social Environment Petroleum
Policies Incentives

•Others

Wastage
Water Supply Electricity Utilities Communications
Management

44| 4 5
There a few private industrial estates, which provide 24*7 electricity, Effluent treatment plants,
waste management facility, etc. These Industrial Estates are very well connected to major cities
and hubs through roads and railways

 To facilitate availability of skilled and trained manpower for the sector, the state is pushing
the implementation of National Skill Development Mission throughout the state
 The state has a good presence of commercial banks and financial institutions to provide
financial assistance to these industries for managing their working capital requirements,
daily operation maintenance costs, etc.

The Industrial electricity tariff in Uttarakhand is one of the lowest across the States in
India with ample availability of land, providing enabling environment for doing business
in the State.
The State of Uttarakhand having a history of industrial harmony, with one of the lowest
person-days lost due to industrial strife in India.
 Uttarakhand offers locational advantage with close proximity to the National Capital
region including advanced as well as emerging markets.
 Uttarakhand has large no. of ancillary units in the districts of Udham Singh Nagar,
Haridwar etc.
 Abundant skilled labor is available in the State. The Uttarakhand Skill Development
Mission provides specific courses on the Automobile Sector.
 Uttarakhand has a well-established Industrial base of long-standing and reputed
business houses like Mahindra & Mahindra Ltd, Hero MotoCorp Ltd, Bajaj Motors
Ltd, TATA Motors Ltd., Ashok Leyland Ltd. etc. These players have introduced
state-of-the-art operating practices which have been fed into the local production
environment
There are some Key players in Uttarakhand e.g.
1. Mahindra & Mahindra Ltd. ( 3 wheelers & 4 Wheelers ) Location : Haridwar
2. Bajaj Auto Ltd. (2 Wheelers ) Location : Pantnagar, Haridwar
3. Tata Motors Location : Pantnagar
4. Ashok Leyland (Commercial Vehicle ) Location : Pantnagar
5. Hero MotoCorp (2 Wheeler) Location : Haridwar
6. Rock man Industries ( Automotive Components) Location : Haridwar

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 References

Ease of Doing Business

 https://www.worldbank.org/content/dam/doingBusiness/media/Annual-
Reports/English/DB2019-report_web-version.pdf
Department for promotion of Industries & Internal trade
 https://dipp.gov.in
Business Reforms Action Plan
 https://dipp.gov.in/sites/default/files/Implementation_Guide_2019_dated_04022019.pdf
 https://eodb.dipp.gov.in/
Single window Clearance System, Uttarakhand
 https://investuttarakhand.com/
 https://investuttarakhand.com/themes/backend/acts/act_hindi1560329515.pdf
 https://investuttarakhand.com/themes/backend/acts/act_hindi1546583850.pdf
 https://investuttarakhand.com/themes/backend/acts/act_hindi1541416693.pdf
Start Up Policies
 https://www.startupindia.gov.in/
 https://www.startupindia.gov.in/content/sih/en/startup-scheme/state-startup-policies.html
 https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/States
%27%20Startup%20Ranking%20Framework%202019_Final.pdf
 http://www.startuputtarakhand.com

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