In a major move to boost ease of doing business, the Delhi government has cut the approval timeline for over 65 green category industries from 120 days to just 20 days. According to Industries Minister Manjinder Singh Sirsa, the applications will now be automatically approved if no decision is taken within this new deadline.
The move eliminates the need for mandatory clearance from the Delhi Pollution Control Committee (DPCC) for non-polluting, low-risk sectors. These include small and medium-sized industries such as:
A big step to end ‘Licence Raj’
Calling the reform a "historic reset", Sirsa said: “This was a long-pending demand from the business community. The double-engine government has delivered what could not be done in 50 years.” He added that this change would end the outdated system of excessive licences and approvals that previously slowed down industrial growth.
Trust-based governance for MSMEs
The Delhi government hopes this shift to trust-based and time-bound clearance will help MSMEs (Micro, Small and Medium Enterprises) grow faster. Most of the industries in the green category fall under MSMEs and were previously burdened with long approval delays.
“This is not just a reform. It’s a clear message: Delhi is open for responsible business,” Sirsa said. “We are breaking free from regulatory gridlocks and empowering honest entrepreneurs.”
When will the new rule begin?
The new rule will come into effect from August, and is expected to make Delhi more business-friendly and reduce red tape. Government officials also confirmed that the earlier system was a major cause of delays, especially for small units that couldn’t afford long waiting periods.
This reform aligns with India’s broader push to improve its ease of doing business ranking and promote job creation through industrial growth. By cutting red tape and relying on trust-based systems, the Delhi government aims to turn the capital into a hub for clean, efficient and scalable businesses.
Inputs from TOI
The move eliminates the need for mandatory clearance from the Delhi Pollution Control Committee (DPCC) for non-polluting, low-risk sectors. These include small and medium-sized industries such as:
- Apparel manufacturing (without dyeing or bleaching)
- Aluminium and PVC product units
- Ayurvedic medicine making (without boilers)
- Cold storage facilities
- Wooden and steel furniture units
- Electric oven-based confectionery
- Optical goods and toy assembly
- Soap, detergent, cardboard and battery container units
A big step to end ‘Licence Raj’
Calling the reform a "historic reset", Sirsa said: “This was a long-pending demand from the business community. The double-engine government has delivered what could not be done in 50 years.” He added that this change would end the outdated system of excessive licences and approvals that previously slowed down industrial growth.
Trust-based governance for MSMEs
The Delhi government hopes this shift to trust-based and time-bound clearance will help MSMEs (Micro, Small and Medium Enterprises) grow faster. Most of the industries in the green category fall under MSMEs and were previously burdened with long approval delays.
“This is not just a reform. It’s a clear message: Delhi is open for responsible business,” Sirsa said. “We are breaking free from regulatory gridlocks and empowering honest entrepreneurs.”
When will the new rule begin?
The new rule will come into effect from August, and is expected to make Delhi more business-friendly and reduce red tape. Government officials also confirmed that the earlier system was a major cause of delays, especially for small units that couldn’t afford long waiting periods.
This reform aligns with India’s broader push to improve its ease of doing business ranking and promote job creation through industrial growth. By cutting red tape and relying on trust-based systems, the Delhi government aims to turn the capital into a hub for clean, efficient and scalable businesses.
Inputs from TOI
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