Chhattisgarh Assembly Passes Landmark Ease of Doing Business Act; Becomes India’s First State with Risk-Based Business Regulation
Chhattisgarh Assembly Passes Landmark Ease of Doing Business Act; First State with Risk-Based Business Regulation
Historic legislation promises faster approvals, self-certification, fewer inspections, and a simplified regulatory framework for businesses across the state.
Raipur | July 16: In a landmark move aimed at transforming the state’s investment climate, the Chhattisgarh Legislative Assembly has passed the Chhattisgarh Ease of Doing Business Act, 2026, making Chhattisgarh the first state in India to adopt a comprehensive Risk-Based Business Regulation framework.
The new legislation seeks to simplify government procedures, reduce compliance burdens, and create a transparent, efficient, and investor-friendly ecosystem. The reform is expected to provide significant relief to Micro, Small and Medium Enterprises (MSMEs), enabling entrepreneurs to establish and operate businesses with fewer regulatory hurdles.
Businesses to Be Classified by Risk Level
Under the Act, industries and businesses will be categorized according to their operational risk. Low-risk enterprises will benefit from simplified compliance procedures, faster approvals, and reduced inspections, while high-risk sectors will continue to remain under stricter regulatory oversight.
Self-Certification to Replace Routine Inspections
One of the key reforms introduced under the legislation is the adoption of a trust-based compliance model. Eligible businesses will be allowed to submit self-certification instead of undergoing routine government inspections. Entrepreneurs may also obtain certification from licensed engineers, architects, or other authorised professionals wherever required.
Annual Licence Renewals to Be Eliminated
The Act removes the requirement for annual renewal of licences and permits in several cases, reducing compliance costs and allowing businesses to focus more on growth and expansion rather than administrative formalities.
43 Government Services to Come Under New Framework
In the first phase, 43 public services across eight government departments will be brought under the new system. These include water connections, industrial registrations, building plan approvals, and other key services. The legislation also provides for deemed approvals where departments fail to process applications within the prescribed timelines.
Three-Tier Monitoring Mechanism
The Act establishes a three-tier governance structure to ensure effective implementation. An Executive Council chaired by the Chief Minister will provide policy direction, while a State-Level Committee headed by the Chief Secretary and District-Level Committees led by Collectors will monitor implementation across the state.
Major Boost for MSMEs and Investment
The state government estimates that nearly 1.5 million MSME entrepreneurs will directly benefit from the reforms. By replacing an inspection-driven system with one based on trust, self-certification, risk assessment, and time-bound approvals, the legislation is expected to improve investor confidence and accelerate industrial growth.
Key Highlights
✔ India’s first Risk-Based Business Regulation framework
✔ Faster approvals for low-risk businesses
✔ Self-certification instead of routine inspections
✔ Deemed approval for delayed applications
✔ No annual licence renewal in many cases
✔ 43 services across eight departments covered in Phase-I
