Achievements of Rajasthan in Compliance Reduction and Deregulation under Ease of Doing Business
Under the visionary leadership of the Hon’ble Prime Minister, the Cabinet Secretariat, Government of India, initiated the Compliance Burden Reduction and Deregulation exercise for all states. As part of this national reform agenda, the Hon’ble Chief Minister of Rajasthan provided active leadership for the state’s participation and ensured effective and timely implementation through multiple meetings chaired by the Chief Secretary of Rajasthan.
As a result, Rajasthan emerged among the leading states that achieved full compliance in all 23 priority areas identified by the Government of India. These reforms were systematically implemented, thereby creating a strong and efficient ecosystem that reinforced Ease of Doing Business. The regulatory framework was simplified and modernised, laying a robust foundation for the grounding and effective implementation of the Memoranda of Understanding signed during the Rising Rajasthan Investment Global Summit.
Rajasthan demonstrated its commitment to strengthening the Ease of Doing Business ecosystem by implementing several transformative reforms. To promote the MSME sector, the state amended Rule 90 to simplify the land conversion process in urban areas, reducing the timeline from 60 to 30 working days, after which automatic approval is granted. This has reduced project delays and accelerated the establishment of new enterprises.
In the field of pollution control, Rajasthan has made remarkable progress. For MSMEs, the timeline for Consent to Establish (CTE) and Consent to Operate (CTO) was reduced from 120 days to 21 days, and for red/large category enterprises to 60 days. Additionally, the Pollution Control Board introduced system-generated auto-renewal of CTOs for units complying with environmental laws based on self-certification. Moreover, amendments to Water and Air Pollution Rules expanded the list of non-polluting White Category industries from 104 sectors to 877 sectors, exempting more non-polluting industries from regulatory requirements. This has accelerated project approvals and promoted industrial growth.
To reduce regulatory burden on micro-enterprises, the Rajasthan Shops and Commercial Establishments Act, 1958, was amended to increase the employee limit from 0 to 10. Furthermore, to strengthen Ease of Doing Business and make establishments more convenient, the state issued an ordinance increasing permissible working hours under the Act. According to the ordinance, daily working hours were raised from 9 to 10, with a minimum 30-minute break after 6 hours of work, and the quarterly overtime limit was increased to 144 hours.
