Karnataka CM Introduces Affidavit-based Approval System for Businesses

The latest business news in Karnataka is the launch of ABAS, an affidavit-based approval system that will be of great assistance to entrepreneurs and investors as it will promote ease of doing business in the state. The Chief Minister, B. S. Yediyurappa has stated this facility is part of the amended Industrial (Facilitation) Act 2002. 

As part of the amended Industrial (Facilitation) Act, an affidavit-based approval system or ABAS has been initiated by Chief Minister B. S. Yediyurappa in the state of Karnataka. Earlier this year, the State Cabinet had decided to bring about certain changes in the Industrial (Facilitation) Act 2002 to allow entrepreneurs to set up industries on identified lands in all districts without asking for clearances or approvals from different departments/agencies. This would also exempt them from taking the permission of the Revenue Department for land conversion. The main purpose of this amendment was to bring ease of doing business in the state. 

According to the Large and Medium Scale Industries Minister Jagadish Shettar, the amendment was to be enforced through an Ordinance. It would not only benefit the business owners to kick start production but also encourage investors involved in the project. Moreover, installation of machinery, production line-up, and other logistical issues would be resolved without any hassles. Be it small, medium or large, all types of private industries would be able to enjoy the perks. States like Rajasthan and Gujarat have utilised this facility for small industries in the private sector. 

Affidavit-based Approval System, also known as ABAS plays a key role in bringing about ease of doing business with the help of this amendment. The Karnataka Chief Minister is confident that the state is a forerunner when it comes to providing an investor-friendly ecosystem for the business community and stakeholders involved. Announcing the launch of ABAS on his official Twitter handle, he tweeted “Launched affidavit based approval system, a historic reform that will enable investors to establish a business without multiple clearances for the first 3 years and provides an investor-friendly ecosystem. This reform will enhance the ease of doing business in Karnataka”. 

During the event, he stated “The amendment in the Karnataka Industrial (Facilitation) Act is a milestone which would enable investors to establish their business without any clearances or approvals from various departments for the first three years. We are committed to the development of a state-of-the-art business ecosystem in the state, and we have been taking several measures to ensure that the state's commitment to providing ease in doing business in the state of Karnataka”. He is confident that the reforms in the land, labour, auto-renewal of licences, and several other clearances would bring about sustainable and inclusive growth in the state of Karnataka. The support of the investors and representative of the industry would be appreciated in this regard. Furthermore, the chief minister believes that the state has taken several historic steps to improve the business climate.