Questions/Answers

This initiative is focused on digital transformation of G2B services through implementation of a Single Window System. Starting a business was a long procedure owing to manual application processes in the departments and the need for an investor to physically visit each of the departments. Hence, the single window system was implemented to make the process efficient, transparent and system driven, and thereby improve investors' experience in the state . The objectives of the initiative are 1. Ensured thirty six permits/ licenses required by an investor during various stages of the business life-cycle viz. pre-establishment, pre-operation, and post-operation, through single window system along with monitoring mechanisms at state level, with the following features: a. Online application submission and fee payment for processing of regulatory clearances, b. Obtain digitally signed certificates which are downloadable and verifiable, c. Track and monitor applications through SMS and email alerts, d. Register grievance in case of delays or non-provision of approvals and clearances, e. Access to allocation, scheduling and inspection findings by competent authorities, f. MIS for state-level single window committee to monitor delays. 2. Increased investor facilitation by advising on a. Clearances and approvals required at start-up or recurring stage through online wizard, b. Access to application forms to be filled in, supporting documents, and fees to be paid for approvals or clearances or renewals, and c. Access to inspection checklists to prevent undue inspection 3. Improved and seamless business interactions with shorter and well defined timelines for issue of permits/ licenses to start and do business in the state. 4. Improved existing governance mechanisms for ensuring greater transparency for the investors along with accountability among Government officials for timely delivery of Government of Business services across departments. 5. Improved ease of doing business and investment climate in the State of Tamil Nadu

The initiative undertaken comes under category, “Promoting digital transformation in the public sector” as it aims at improving the Government to Business service delivery through an end-to-end IT-enabled system, supported by suitable legislation and institutional mechanism. The online single window system implemented in Tamil Nadu is legally supported by the Tamil Nadu Business Facilitation Act and Rules, 2018. The objective is to ensure time-bound processing and disposal of applications by various government departments and minimize physical interface with officials. The legislation also specifies an institutional mechanism at State and District level to monitor disposal of applications within specified timelines.

The initiative undertaken by the State of Tamil Nadu supports the Goal 8: Decent Work and Economic Growth and Goal 9: Industry, Innovation and Infrastructure. The targets 8.2, 8.3, 9.2 and 9.3 within the respective goals were relevant to the initiative. The implementation of the single window portal in the State of Tamil Nadu improved the ease of doing business environment and reduced the time between applying for clearances and starting the commercial production which in turn increased the domestic and foreign investments in the State of Tamil Nadu. Furthermore, increase in the investments led to spurring of economic productivity and growth, increase in job opportunities and development of industrial infrastructure.

Initiative undertaken by the State of Tamil Nadu ensures that there is continuous flow of investments in the State which in turn will provide job opportunities to the unemployed people including the vulnerable group or groups including women, older people, and people with disabilities, improve per-capita income and thereby improve the economic standards of the people of Tamil Nadu

Before the implementation of this digital initiative, an investor had to submit manual applications, supporting documents to more than twelve departments for obtaining permits/ licenses to start and do business in the state. Timelines were not defined for raising queries by the departments on the application, and hence multiple queries were asked from the investors leading to significant delay to start construction and commercial production. The timelines for issuing approval was also on a higher side. In order to improve the overall experience of the investors including increased transparency, seamless business interactions and timely query management, disposal of applications, Single Window System was implemented supported by an institutional mechanism that is governed by the Tamil Nadu Business Facilitation Legislation. This legislation also has provision for financial penalty on government department officers who do not dispose the application within the timelines defined in the legislation. The above measures have ensured improved governance and accountability of government departments that are responsible for issuing regulatory clearances to start and do business.

Several industries across various sectors had used the new single window system in the last two years, thereby creating job opportunities for all people including women. For instance, in the footwear sector, Cheyyar SEZ Developers Private Limited who is the contract manufacturer for Nike shoes, established two plants at Cheyyar (Growth Link Overseas Pvt. Ltd.) and Bargur (Lotus Footwear Enterprises Ltd.) industrial areas which employed over 30,000 people of which 70% (21,000) are women.

The target groups of the initiative undertaken by the State of Tamil Nadu include the investors looking for establishing an interprise, investor already in Tamil Nadu, and unemployed people including women, older people and people with disabilities. The target groups have benefitted by the implementation of the initiative as detailed below. 1. New Investors– the initiative eased the process of application for setting up industries through a one stop shop portal where investors can apply and obtain thirty six permits/ licenses across the business life-cycle from twelve government departments. 2. Existing Companies– the initiative eased the process of applying for services that are required during normal course of businesses including renewals. Grievance redressal mechanism have also been developed to support/help the companies. 3. Unemployed people– the initiative resulted in improved investment which in turn increased the job opportunities for all people including women.

Step 1: Planning The development of the Single Window Portal (SWP) involved extensive planning which included the following key activities: •Identification of Services: This was done through consultation with the industries, literature review of the best practices in other countries like Singapore, Thailand etc. and desk review of the existing policies / regulations in Tamil Nadu. This helped in arriving at a draft list of services to be provided through SWP. •Finalisation of Services to be offered through Single Window Portal: The draft list of services and the timeline for providing them through SWP was discussed and agreed with each of the concerned departments to arrive at a final list of services. Step 2: Implementation Regulatory Reforms - Based on the list finalised, discussions were held with the concerned departments to define the checklist of documents for each permit/ license, and map the procedure for processing them through SWP. As a result of this, the Tamil Nadu Business Facilitation Act and Rules was drafted to provide a legislative backing to the Single Window Portal. The regulation was drafted with the support of regulatory experts. Single Window Portal- The Single Window system was developed to offer thirty six services. This involved integration of services for departments which had online system and development of online system for departments which had manual processes for certain services. Step 3: Monitoring and Evaluation Monthly review meetings were undertaken by the senior leadership in the government with all the government departments and the IT vendors to monitor the progress of the project and address roadblocks. This ensured the timely implementation of the project within the planned timeframe of six months.

•Consensus Building: Since the Single Window System pertains to multiple departments, building consensus was the greatest challenge faced. Multiple workshops and meetings enabled to overcome this. •Operational Challenges: There were technical issues in the system integration. This was overcome through involvement of IT experts. •Resistance to Change: Due to the threat to the existing practices, many departments were resistant to be included in the SW system. However, the leadership drive from the senior leadership in government helped in overcoming this.

The innovative features of the initiative are as follows: 1. State and district nodal agencies are empowered by Tamil Nadu Business Facilitation Act to issue deemed approval if applications are not processed within the prescribed time limit by the concerned department. 2. Parallel Processing of Clearances by competent authorities so that the various approvals required are processed efficiently. 3. To ensure that queries are not raised by the competent authority in multiple rounds, timelines are defined in legislation for seeking all clarifications in a single instance through single window portal. 4. Delegation of Inspection by government departments to Private Technical Experts

The State of Tamil Nadu was one of the pioneer States in India that introduced single window mechanism for setting up industries in the State on 02 November 2017. Several countries across the world such as Thailand, Japan, Singapore, New Zealand, and many others have adopted the concept of single window system. To make the clearance/approval application process transparent and system driven, Government of Tamil Nadu has drawn inspiration from the best practices of the above mentioned countries to implement an online Single window system to improve the ease of doing business environment.

The initiative has been adapted across all the cities, districts and regions of Tamil Nadu. The online Single Window System implemented by Government of Tamil Nadu can be used by an investor who wishes to start or expand business in any location within Tamil Nadu.

Not applicable

The team for implementing this initiative comprised of regulatory experts, functional consultants, and IT System Integrator. The regulatory experts were involved in drafting of the legislation for the Single Window System. The functional consultants helped in defining the functional specifications, and IT System Integrator was responsible for developing single window system. Five functional consultants and twenty five software developers were involved in the development process, and the total effort was about 180 person months. The cost of development of the Online Single Window Portal was about USD 60,000.

A fee is levied from the investors for availing the Single Window services. The fee varies from 4000 USD to 21000 USD depending upon the total investment amount planned by the enterprise. The cost of development has already been recovered using the fee collected. Further investments are being made to improve the user experience and provide additional services through single window system. The Single Window system is monitored by a three-tier institutional structure at the State level comprising of senior government officials from concerned departments along with industry experts.

Yes

The initiative is evaluated by an internal team of experts in Guidance Bureau. Key Performance Indicators such as time taken to obtain a permit/ license prior to single window system and post implementation of it were studied and analysed. Feedback from investors in the state were taken to understand the impact and areas of improvement.

Key indicators evaluated are given below: 1.Time taken approvals: Overall time taken for business related approvals/ clearances from different government departments 2.Investment Inflow: Investments made by the single window users for establishing their enterprise in the state 3.Deemed approvals issued leveraging the provisions and timelines specified in the Business Facilitation legislation 4.No. of users registered: User registered for Single Window services. 5.Jobs created: Employment created along with better doing business scenario Basic accounting and data analytics tools were used for evaluation of the indicators.

The key findings from the evaluation of initiative and their impact are given below: 1. Simplification of the forms thereby reducing the time for application 2. Transparency in terms of documents and procedures for approvals reduced the queries and improved trust from investors 3. Clarity regarding the fee paid by the investor was provided through unit rates and automatic fee calculation modules 4.Time-bound online query system: Ensured queries are resolved in timely manner at one go and not raised multiple times 5. Approval/Rejection of Application within Prescribed Timelines: Assurance for investors on decision for application within the time limit prescribed in the Tamil Nadu Business Facilitation Rules 2017. 6.Reduced timelines: Implementation of the system has helped in reducing timelines for approvals / permits. For example, time taken for factory plan approval and factory licensing has been reduced from 30 days to 14 days post implementation of the system. 7.Final Approval Certificate through Online Single Window System: Investor could take a print of the approval / clearance issued by the Competent Authority with a unique identification number from the portal that will serve as the registration / license. 8.Application Tracking: Investors were able to track the status of the application through the online single window system.

A three-tier institutional structure is devised at State level, to ensure coordination among the respective Government departments / agencies and monitor the functioning of Single Window System. Details are discussed below: I. State Single Window Committee The State Single Window Committee has the Managing Director and CEO, Guidance Bureau as the Chairperson; Company Secretary, Guidance Bureau as the Member Convener; the Head of Department from Competent Authorities concerned; and not more than two persons from Trade Associations, Chambers of Commerce and Technical Experts This the first level committee that discusses the issues in applications received through SWP. II. State Single Window Monitoring Committee The State Single Window Monitoring Committee has the Chief Secretary to Government as the Chairperson; Secretary, Industries Department as the Member Convener and Secretaries of concerned departments as members This is the second level committee that reviews the applications and resolves issues forwarded by the State Single Window Committee III. Investment Promotion and Monitoring Board The Investment Promotion and Monitoring Board has the Chief Minister of Tamil Nadu as the Chairperson; Secretary, Industries Department as the Member Convener and other such members This is the third level committee that provides strategic directions to the other committees and take key policy decisions

The Single Window Portal was developed through a collaborative exercise wherein both internal and external stakeholders were consulted. The portal was developed through consultation with external stakeholders that includes Industry Bodies such as Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce & Industry (FICCI); industries; industry experts; start-ups; and other stakeholders. This helped in identifying and prioritizing the services that are to be offered through the Single Window Portal. Apart from the industry associations, internal stakeholders i.e. twelve departments that offer various services were consulted to simplify and automate the existing processes and systems. These departments played a crucial role through their support and cooperation in implementation of the new system. This ensured that the system is smoothly implemented. Post-implementation, in addition to the evaluation conducted by the internal experts, the feedback of the industries was also taken for future initiatives.

Leadership: The implementation of SWP involved collaboration with multiple Government departments and stakeholders. Guidance Bureau was entrusted with the task of implementing the SWP. The leadership team played a crucial role in ensuring the smooth execution of these tasks through effective planning, decision making and execution. Quick decision making, management, and effective collaboration with departments helped in successful implementation of SWP. Change Management: Since implementation involved transformation of the existing systems, processes and regulations, it had resistance from many Government Departments. Efforts were made by Guidance Bureau through one on one meetings with department heads to ensure that all the related departments’ were on board. The proposed changes were finalised in consultation with the related departments. Training: To ensure that the officials dealing with approvals of various permits and licences are acquainted with the new system, need oriented training programs were organised for various officials. These trainings were aimed to enable the officials to use the systems smoothly. From the lessons learnt from the first phase of implementation, we plan to provide fifty additional services for investors through SWP, by identifying other government departments that issue permits/ licenses. This will further enhance investors' experience in the state.