The Chhattisgarh Assembly on Thursday passed the Chhattisgarh Ease of Doing Business Bill, 2026, a move the state government said will simplify regulatory processes and create a more business-friendly environment for industries and enterprises.
According to the government, Chhattisgarh is set to become the first state in the country to implement a risk-based and trust-based business permission system. The new framework is aimed at reducing procedural hurdles, improving transparency and speeding up approvals, particularly for micro, small and medium enterprises (MSMEs).
Low-risk businesses to get faster approvals
Under the legislation, industries and commercial establishments will be categorised based on the nature of their activities and risk profile. Low-risk businesses will receive simplified and faster approvals, while high-risk projects will continue to undergo technical scrutiny and physical inspections.
The new system provides for self-certification or certification by licensed engineers, architects and authorised professionals in place of repeated departmental inspections for low-risk enterprises. The government said this is expected to make compliance processes quicker and more efficient.
The Bill also removes the requirement for annual renewal of licences and permissions, replacing it with a risk-based approval mechanism. MSMEs will be able to obtain certain permissions, including water supply approvals, through self-declaration. Registrations of firms and societies will be processed through time-bound procedures, while building permissions can be granted through self-certification or certification by authorised experts.
In cases where departments fail to decide on eligible applications within the prescribed timeline, approvals will be deemed granted through an auto-approval mechanism. However, technical evaluations and inspections will remain mandatory for high-risk projects.
The legislation covers 43 services offered by eight state government departments under the new approval framework, with provisions to include additional services in the future.
To oversee implementation, the government has established a three-tier monitoring mechanism comprising a state-level committee chaired by the Chief Secretary and district-level committees headed by Collectors, functioning under the guidance of a council chaired by the Chief Minister.
The state government said the reform is expected to directly benefit more than 15 lakh MSMEs by reducing the time and cost associated with starting and operating businesses while maintaining oversight in higher-risk sectors.
The state government also informed that the legislation is part of a broader effort to improve the ease of doing business and attract greater private investment across sectors. By reducing compliance burdens for low-risk enterprises while retaining safeguards for high-risk projects, the new framework aims to support entrepreneurship, encourage formalisation of businesses and strengthen Chhattisgarh's position as an emerging investment destination.
