Chennai:
Tamil Nadu must improve the quality of regulatory
environment to realise the growth trajectory envisioned by Vision 2023,
according to a study conducted by Madras Chamber of Commerce and Industry.
The study ‘Manufacturing in Tamil Nadu: A Regulatory
Roadmap’ released by Arun Maira, member of the planning commission and received
by T T Srinivasaraghavan, managing director of Sundaram Finance stated that
flexibility in hiring labour for temporary work, challenges associated with
complying with numerous provisions of Factories Act, delays in obtaining
construction permits and time taken to start a business and irritants faced im
payment of taxes seem to be the major hurdles.
The study said some of these irritants contributed in the
downgrading of the state to second rank in 2011.
Presenting the key findings of the study, which was done
by Athena Infonomics on behalf of MCCI, Deepak Karthikeyan, the Director of Athena
Infonomics said the state must invest in creating a conducive ‘investment
climate’ for business to achieve the targets set out in state’s vision.
Stating that industries expend a considerable amount of
time to comply with various inspections and approvals under different laws, she
said a single business act would go hand-in-hand with the concept of
self-certification, where a pool of private agencies with experts in relevant
fields will be accredited to inspect particular units and issue necessary
certificates as required by law.
The study also stressed the need to revisit and simplify
Tamil Nadu Factories Rules 1950 so that only core provisions central to the
health and the safety of labourers are enforced by the state.
The report also stressed the need for hiring people
through fixed term contracts. It also called for the need to reduce human
interface at checkposts.
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