Bihar sets 30-day timeline for investment approvals; delays to trigger 'deemed clearance'

The Bihar government on Tuesday announced its decision to make it mandatory for all investment proposals to be given approval within 30 days and introduce a “deemed approval” provision if authorities fail to take a decision within the stipulated period.

The decision was taken at a cabinet meeting chaired by Bihar Chief Minister Samrat Choudhary as part of efforts to accelerate industrial development, generate employment and boost the state's economic self-reliance, according to an official statement.

“The government has prioritised a simple, transparent, and time-bound approval system. The objective is to simplify all procedures related to setting up industries and completely eliminate unnecessary delays and administrative complications for investors", it said.

Under the new framework, the State Investment Promotion Board (SIPB) Secretariat will function as a fully empowered single nodal agency for industrial investments and will be vested with extensive administrative and legal powers.

According to the new arrangement, once the SIPB Secretariat completes technical scrutiny and recommendations on an application, the competent authority concerned will be required to grant approval within 30 days or within the prescribed timeline.

The provision will have legal backing and will not merely be an administrative directive.

If a department or competent authority fails to take a decision within the stipulated period, the SIPB Secretariat will issue a "deemed clearance" to safeguard investors' interests, the statement said.

Such approvals will be binding on the concerned department and will not be subject to reconsideration, it added.

To further streamline the process, competent officers from various technical and regulatory departments will be deputed directly to the SIPB Secretariat. They will function under the administrative control and supervision of the Industrial Development Commissioner.

This, the government said, will enable faster decision-making through a single platform.

The state government will also introduce transparent and uniform Standard Operating Procedures (SOPs) for all approvals and licences related to industrial establishment, operations and expansion, the statement said.

Choudhary said industrial development was the strongest foundation for Bihar's economic prosperity, job creation and overall growth, adding that the government was committed to making the state a preferred investment destination for investors from across India and abroad.