Chhattisgarh to Become First State with Dedicated Ease of Doing Business Law

Chhattisgarh Cabinet Clears Landmark Ease of Doing Business Bill; State Aims to Set New Benchmark in Investment Reforms

In a major policy decision aimed at transforming the investment landscape, the Chhattisgarh Cabinet, chaired by Chief Minister Vishnu Deo Sai, has approved the draft of the Chhattisgarh Ease of Doing Business (Exemption and Facilitation) Bill, 2026. The proposed legislation is designed to simplify regulatory procedures, reduce compliance burden and create a transparent, technology-driven ecosystem for businesses.
The State Government said the proposed law reflects its commitment to improving governance, encouraging entrepreneurship and positioning Chhattisgarh as one of India’s most investment-friendly destinations. Once enacted, Chhattisgarh is expected to become the first state in the country to introduce a dedicated law of this nature.
The Bill introduces a comprehensive framework to make the establishment and operation of industries more efficient by reducing procedural delays and eliminating unnecessary regulatory hurdles. It seeks to ensure that businesses receive government services in a time-bound, transparent and predictable manner.
One of the key provisions of the proposed legislation is Deemed Permission, under which applications pending beyond the prescribed timeline will automatically be treated as approved, ensuring that investment proposals are not delayed due to administrative bottlenecks.
Another significant reform is the introduction of Self-Certification, allowing eligible businesses to certify compliance with specified regulations instead of undergoing repeated inspections. This will reduce paperwork, improve operational efficiency and encourage voluntary compliance.
The Bill also provides for Third-Party Verification, enabling accredited independent agencies to verify compliance wherever required. This mechanism is expected to strengthen transparency while reducing direct procedural intervention by government departments.
To improve regulatory efficiency, the proposed legislation introduces Risk-Based Inspection, under which inspections will be conducted only on the basis of risk assessment instead of routine visits. The objective is to focus regulatory attention on high-risk cases while allowing compliant businesses to operate without unnecessary interruptions.
Another important feature of the Bill is the removal of duplicate licensing requirements. Businesses will no longer be required to obtain multiple approvals for the same activity from different departments, significantly reducing compliance costs and improving the ease of establishing enterprises.
According to the government, the proposed legislation has been prepared after studying best practices adopted by several leading industrial states. The reforms are expected to enhance investor confidence, improve the business climate and make Chhattisgarh a preferred destination for manufacturing, services and emerging industries.
Officials believe the new legal framework will accelerate industrial development, attract fresh domestic and private investments, facilitate MSME growth and generate large-scale employment opportunities across urban and rural areas of the state.
The government has also emphasized that the Bill aligns with its broader vision of Minimum Government, Maximum Governance, where technology, transparency and accountability become the foundation of public service delivery.
With the Cabinet’s approval, the draft Bill will now be placed before the State Legislature for further consideration. Once passed, it is expected to usher in a new era of regulatory reforms, providing industries with faster approvals, simplified compliance and a more predictable policy environment.
Government officials expressed confidence that the proposed legislation will strengthen Chhattisgarh’s competitiveness, improve the state’s investment rankings and contribute significantly to long-term economic growth, industrial expansion and employment generation.