Chhattisgarh Assembly Approves Landmark Ease of Doing Business Bill

The Chhattisgarh Assembly on Thursday approved the Chhattisgarh Ease of Doing Business Bill, 2026, marking a significant step towards streamlining business operations in the State. With this move, Chhattisgarh becomes the first state in India to adopt a risk- and trust-based business permission system.

Simplifying Business Processes for MSMEs

The legislation is designed to reduce procedural hurdles, simplify compliance requirements, and foster a transparent, investor-friendly environment, particularly for micro, small, and medium enterprises (MSMEs). Businesses will now be classified based on their size and risk profile, enabling low-risk enterprises to secure faster approvals while maintaining stringent scrutiny for high-risk projects. This classification aims to balance ease of operations with necessary oversight.

Overhaul of Approval Mechanisms

The Bill incorporates 43 services from eight State departments into a risk-based approval framework, with provisions to expand the list upon approval by the Executive Council. To ensure effective implementation, a three-tier monitoring system has been established. This structure includes committees led by the Chief Secretary at the state level and Collectors at the district level, all operating under the guidance of a council chaired by Chief Minister Bhupesh Baghel.

Expected Benefits for Over 15 Lakh MSMEs

The government estimates that the reform will directly benefit over 15 lakh MSMEs by reducing the time and cost associated with starting and running businesses. While the framework prioritizes efficiency, it also seeks to maintain oversight for high-risk sectors, bolstering Chhattisgarh’s reputation as a predictable and investment-friendly destination.

Mixed Reactions in the Assembly

Commerce and Industry Minister Lakhan Lal Dewangan introduced the Bill, which was passed with a partial amendment following a discussion. While BJP leaders, including former minister Ajay Chandrakar, hailed the legislation as a landmark reform, Congress MLA Daleshwar Sahu raised concerns about the lack of thorough deliberation and consultation before its introduction.

This legislative initiative underscores Chhattisgarh’s commitment to fostering a robust business ecosystem, particularly for MSMEs, while maintaining regulatory oversight for high-risk industries.

Source: The Hindu