Chhattisgarh govt rolls out new law: Risk-based Ease of Doing Business Act 2026
Raipur, July 16
In a major boost to industry and entrepreneurship, the Chhattisgarh Legislative Assembly has passed the Chhattisgarh Ease of Doing Business Act, 2026. It is a comprehensive risk-based business approval system. After a debate and an amendment replacing "coordinator" with "Secretary", the Bill was passed by voice vote.
The new law aims to dramatically reduce bureaucratic hurdles for businesses by categorising them according to risk profiles based on size, investment, and the nature of activities. Low-risk businesses, particularly MSMEs and startups, will enjoy simplified procedures, self-certification, deemed approvals, and minimal government intervention.
Under the Act, low-risk enterprises will face significantly relaxed regulations and documentation requirements, while high-risk and large industries will continue to be subject to necessary oversight. Frequent government inspections will be replaced by self-certification or certification by licensed professionals such as engineers and architects for many low-risk businesses. If a government department fails to decide on an application within the prescribed timeframe, the approval will be deemed granted automatically, ending long delays in file clearances.
Several permits will no longer require yearly renewals, replacing the old system with a risk-based compliance framework. Approvals for water connections, firm and society registrations, and building plan sanctions will also be fast-tracked.
The government expects the Act to benefit more than 15 lakh MSMEs operating in the state. By cutting red tape, reducing compliance costs, and increasing transparency, the law is projected to attract fresh investments and generate greater employment opportunities.
The reforms will allow entrepreneurs to focus on business growth rather than navigating administrative mazes.
Industry stakeholders have welcomed the move, calling it a progressive step that positions Chhattisgarh as a forward-looking investment destination.
To ensure effective implementation, the Act establishes a three-tier monitoring system: a state-level committee chaired by the Chief Secretary; district-level monitoring led by the District Collector; and an apex council headed by the Chief Minister to oversee both levels. This structured oversight is expected to keep departments accountable and ensure the timely execution of the reforms.
— IANS
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