A New Dawn for Tamil Nadu’s Industrial Sector / Local ward member, chairman etc will have no part in approving pre-establishment and expansion projects in factories.
Beacon HR & IR Consultants who were dealing with pre-establishment approvals and expansion of factories told that – In a significant development for Tamil Nadu’s business community, the state government has implemented a groundbreaking initiative that promises to streamline industrial approvals and eliminate longstanding challenges faced by investors and industry leaders.
Historically, factory owners and business executives have grappled with numerous obstacles when seeking necessary approvals, often facing unwarranted demands from local authorities. Reports indicate that panchayat members, ward representatives, and panchayat chairpersons frequently exercised undue influence over the approval process, resulting in substantial unofficial payments.
However, the Tamil Nadu government has taken decisive action through the implementation of the “TAMIL NADU BUSINESS FACILITATION RULES, 2017.” Under these new regulations, the District Industries Centre (DIC), operating as a District-level Nodal Agency under the direct supervision of District Collectors, will now oversee the approval process.
Extract of the rules:
(1) Pre-establishment clearances which are required prior to establishment of an enterprise as given in Annexure2.1.
(2) Pre-operation clearances which are required prior to, or on commencement of, operation of an enterprise as given in Annexure 2.2.
(3) Renewal of clearances provided at either pre-establishment or pre-operation stage, which are required for continuing operations of an enterprise as given in Annexure 2.3.
(4) Incentives for eligible enterprises which shall be offered as given in Annexure 2.4.
(5) Other clearances covered under this Ordinance, as well as their renewal, which are currently not provided through the single window portal but shall be provided through the single window portal in a phased manner as given in Annexure 2.5.
In a recent announcement, the Collector of Kancheepuram district has confirmed that these approvals will now be processed directly through the DIC in the Collector’s office, effectively bypassing local panchayat officials. This centralisation of authority represents a significant step toward transparency and efficiency in the industrial approval process. This will be effective by mid-January 2025.
This reform marks the end of an era characterised by local interference and unauthorized demands, ushering in a new period of streamlined, legitimate business operations. The move is expected to boost investor confidence and accelerate industrial development across Tamil Nadu.
For industry stakeholders, this development represents a welcome shift toward a more transparent, efficient, and professional business environment. The single-window system, under the oversight of district collectors, promises to significantly reduce bureaucratic hurdles and create a more conducive atmosphere for industrial growth.
Beacon HR & IR Consultants appreciated the announcement of the collector of Kanchipuram. Beacon also congratulates the honourable Chief Minister of Tamil Nadu and the Deputy Chief Minister of Tamil Nadu for this daring move.