Reform would simplify procedures and make state’s investment environment more predictable
Keralam Chief Minister V.D. Satheesan has announced ‘SARAL Keralam – Simplified and Accelerated Regulatory Approvals and Licensing’, a major reform to simplify and accelerate statutory approvals for investment projects in his state.
Approved by the Cabinet, SARAL Keralam is based on the principle of ‘One State, One Approval, One Document’ and will establish a single statutory mechanism for final approval of eligible investment projects.
The Chief Minister said on 18 Sept that the reform would simplify procedures, reduce delays and make state’s investment environment more predictable.
The mechanism will cover investments above Rs.25 crore. Projects above Rs.25 crore and up to Rs.50 crore will be considered at the District level, while projects above Rs.50 crore will come under the State-level mechanism. The State-level Approval Committee will be chaired by the Chief Secretary and the District-level Committee by the District Collector.
A maximum processing period of 75 days will be prescribed from submission of a complete application to final approval. This includes 10 days for preliminary scrutiny, 30 days for technical scrutiny, 15 days for appraisal and consolidation, and 20 days for the final decision. An Integrated Enterprise Clearance Certificate will be issued immediately after approval, he said.
SARAL Keralam will be a one-stop mechanism for statutory approvals, rather than merely recommendations. Necessary amendments to the relevant Acts and Rules will transfer final approval authority to the State- and District-level Committees and simplify technical procedures.
A key feature is clear responsibility and accountability for departmental officers involved in appraisal and approval. Amendments to the Kerala State Service Rules are proposed to enable disciplinary action for delays, inaction, failure to act or a negative attitude in the discharge of duties.
At the same time, Departments will retain their technical scrutiny and inspection responsibilities. The framework will not dilute safeguards relating to safety, environmental protection, employee welfare or public health. There will be no deemed approval, and existing departmental mechanisms will continue for investments outside the specified categories.
The framework will also provide an appeal mechanism against rejection decisions and is intended to significantly reduce the regulatory burden associated with investment approvals.
The reform seeks to address prolonged delays in investment approvals. KSIDC is monitoring 73 major investment projects, of which 47 remain stalled due to delays in statutory approvals and clearances. These projects represent investments of more than Rs.25,700 crore and have the potential to generate approximately 88,000 employment opportunities.
The Chief Minister noted that some investment proposals have remained pending for five to seven years, and said SARAL Keralam is a major step towards bringing investments to Keralam by making approval procedures faster and simpler.
The Cabinet has approved the necessary statutory framework, including amendments to 19 existing laws, following detailed consultations with the concerned Departments and agencies, said the Government of Keralam. Fiinews.com
