Jammu And Kashmir Legislative Assembly (Img: Dynamite News)
Jammu: The Jammu and Kashmir government’s ambitious plan to simplify business regulations and attract more investment has been temporarily delayed after the Cabinet deferred the proposed Ease of Doing Business Ordinance. The decision was taken after some ministers sought a detailed presentation on the provisions, legal framework and implementation mechanism of the proposed reforms.
The draft ordinance was prepared by the Law, Justice and Parliamentary Affairs Department under Chief Minister Omar Abdullah and was placed before the Cabinet during its recent meeting. However, the proposal could not receive final approval as ministers requested further clarification on several aspects related to administrative procedures and regulatory changes.
Government sources indicated that if the departmental presentation is completed soon, the Cabinet may approve the ordinance through circulation. After Cabinet clearance, the proposal would be forwarded to Lieutenant Governor Manoj Sinha for his assent. However, if the approval process takes more time, the government is expected to introduce the reforms as a Bill during the upcoming Jammu and Kashmir Assembly session likely to be held in September.
The proposed Ease of Doing Business Ordinance is aimed at reducing regulatory hurdles for entrepreneurs, investors and commercial establishments by simplifying approval procedures and cutting down unnecessary compliance requirements. The reforms are designed to make Jammu and Kashmir a more business-friendly destination by reducing paperwork, improving transparency and accelerating government approvals.
Under the proposed framework, businesses will get greater freedom through self-certification mechanisms, reduced dependence on multiple departmental clearances and restrictions on repeated inspections by different government agencies. The proposal also includes a system under which inspection reports will have to be submitted within a fixed timeline, improving accountability among regulatory departments.
One of the key provisions of the proposed ordinance is a three-year compliance relaxation period for certain procedural requirements. Under this system, entrepreneurs would be allowed to establish and operate their businesses while completing some non-essential formalities within the stipulated period. The move is intended to reduce delays in starting commercial activities and encourage new investments.
The government has proposed major simplification measures for sectors such as hotels, homestays, healthcare facilities, educational institutions and other commercial ventures. Officials believe that reducing approval delays in these sectors will provide a major boost to tourism, services and private sector development in Jammu and Kashmir.
A major focus of the ordinance is reducing the number of No Objection Certificates (NOCs) required from different departments. Officials said that in some cases businesses were required to obtain dozens of approvals before beginning operations. The proposed reforms seek to retain only essential clearances while removing outdated and unnecessary permissions.
The draft legislation also includes provisions for digitisation of government services, elimination of obsolete regulations, simplification of compliance procedures and decriminalisation of minor regulatory violations. These measures are aligned with the Centre’s broader Reduction of Compliance Burden (RCB) initiative, which focuses on reducing excessive paperwork, improving ease of access to government services and lowering operational costs for businesses.
Officials said the reforms were prepared after consultations with various departments of the Jammu and Kashmir administration and were aligned with the national Ease of Doing Business framework monitored by the Union Cabinet Secretariat. The Centre has been encouraging states and Union Territories to adopt measures based on four key principles — simplification, digitisation, elimination of unnecessary rules and decriminalisation of minor offences.
The proposed ordinance is expected to provide relief to startups, small businesses and entrepreneurs by reducing administrative delays and improving the investment ecosystem. The government believes that easier business regulations will encourage private investment, generate employment opportunities and strengthen economic activity across Jammu and Kashmir.
However, the ordinance will come into effect only after completing the required constitutional and legislative procedures. Since ordinances are issued when the legislature is not in session, they must later be replaced by a law passed by the Assembly within the prescribed period.
The latest development comes as the Jammu and Kashmir administration continues to streamline governance procedures after the region’s transition from a state to a Union Territory following the Jammu and Kashmir Reorganisation Act, 2019. The government has also been working on updating administrative rules, including the Business Rules defining the roles and powers of the Chief Minister, Cabinet, ministers and administrative secretaries.
The final approval of the Ease of Doing Business reforms is now dependent on the detailed departmental presentation and subsequent decision by the Cabinet. If cleared, the initiative could mark a significant shift in Jammu and Kashmir’s business policy by creating a simpler, faster and more investor-friendly regulatory environment.
