Punjab approved List of NOCs for MSMEs to boost ease of business

By Sanjay Maurya

News Highlights

• The Cabinet approved a list of NOCs needed to set up enterprises in the state to make it easier for MSMEs to do business.
• Punjab is the first state in the country to make systematic proactive initiatives to improve ease of doing business in matters of NOCs.
• The absence of a clear protocol for obtaining NOCs is causing serious issues for entrepreneurs.

Punjab approved List of NOCs for MSMEs to boost ease of business

The Cabinet approved a list of no-objection certificates (NOCs) needed to set up enterprises in the state to make it easier for Micro, Small and Medium Enterprises (MSMEs) to do business. The list is based on suggestions from the Global Alliance for Mass Entrepreneurship (GAME), a state organization concerned with converting the state into a progressive industrial centre.

The state government’s decision to support the MSME company in the state was stated by the Chief Minister in his Independence Day speech, and the list approved is in line with that.

In November 2020, the state Department of Industries and Commerce and GAME signed a two-year agreement of understanding to begin new changes, according to a spokeswoman.

Punjab is the first state in the country to make systematic proactive initiatives to improve ease of doing business in matters of NOCs, allowing MSMEs to flourish and prosper.

The approved full list of NOCs would be a definitive source for entrepreneurs to obtain all NOC-related information for establishing and operationalizing business, according to a spokeswoman for the Chief Minister’s Office. Any changes to the authorized list of NOCs in the future will be made by the concerned Administrative Department with agreement from the Council of Ministers.

The absence of information and a clear protocol for obtaining NOCs are causing serious issues for entrepreneurs looking to start a factory in Punjab, according to the cabinet. The Punjab Right to Business Act of 2020 and the Punjab Anti-Red Tape Act of 2021 required the development of a detailed list of NOCs to reduce the compliance burden on businesses and to satisfy the mandates of the Punjab Right to Business Act of 2020 and the Punjab Anti-Red Tape Act of 2021.

The Cabinet authorized amendments to the Industrial and Business Development Policy-2017 to allow standalone units manufacturing alcoholic products to encourage the use of available agricultural waste for biofuels manufacturing in the state.