Why in news
- Tamil Nadu introduced an amendment bill imposing a strict 21-day time limit for industrial clearances and business approvals under single-window mechanisms.
What is the Parent Act?
- The Tamil Nadu Business Facilitation Act, 2018 established a single-window portal and designated authorities to expedite clearances for industrial enterprises.
- It covers pre-establishment, construction, and pre-operation approvals across state departments.
Key Changes Introduced
- Imposes a statutory 21-day ceiling on state departments to process, grant, or reject business license applications.
- Before: Approvals lacked a uniform statutory time cap across multi-departmental clearances.
- After: Departments failing to act within 21 days trigger deemed approval clauses or automatic escalation to supervisory committees.
Why it Matters
- Strengthens state-level Ease of Doing Business rankings and reduces regulatory friction for manufacturing investments.
- Establishes legal accountability on state administrative departments for time-bound clearance processing.
Key terms
Deemed Approval
A statutory provision wherein an application is automatically considered granted if the regulatory authority fails to issue a decision within the prescribed timeframe.
Prelims facts
- Single-window clearance frameworks use deemed approval mechanisms to ensure statutory time compliance.
Mains discussion
- Impact of statutory time bounds on state investment climate and administrative governance.
Source: The Hindu BusinessLine
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2017 · Q83 · General Studies · 2 marks
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