State Set to Become India’s First With Trust-Based Business Permission Framework
RAIPUR, Chhattisgarh (India CSR): The Chhattisgarh Legislative Assembly on Thursday passed the Chhattisgarh Ease of Doing Business Bill, 2026, marking a major policy reform aimed at simplifying business approvals, reducing regulatory delays and strengthening the state’s investment ecosystem.
Landmark Policy Reform
Introduced under the leadership of Chief Minister Vishnu Deo Sai, the legislation is expected to position Chhattisgarh as the first state in India to establish a comprehensive risk-based and trust-based business permission system. The framework seeks to replace uniform regulatory requirements with approval processes proportionate to the size, nature and risk profile of individual enterprises.
Risk-Based Business Approvals
Under the proposed system, industries and commercial establishments will be classified into different categories according to their operational scale and potential risk. Low-risk businesses will receive simplified and faster approvals, while high-risk industrial projects will continue to undergo detailed technical evaluation and physical inspections.
Smaller Enterprises Prioritised
The reform is particularly significant for micro, small and medium enterprises, which often face disproportionate compliance costs, repeated inspections and procedural delays. By introducing differentiated approval requirements, the government intends to ensure that small businesses are not subjected to the same complex processes applicable to large or high-risk industries.
Self-Certification Framework Introduced
Low-risk enterprises will be permitted to obtain certain approvals through self-certification or certification by licensed engineers, architects and other authorised professionals. This mechanism will replace frequent departmental inspections in eligible cases while placing responsibility on businesses and certified experts to comply with prescribed safety and regulatory standards.
Annual Renewals Abolished
The Bill also provides for the removal of mandatory annual renewal requirements for specified licences and permissions. These will be replaced by risk-based approval and monitoring systems, reducing repetitive paperwork and enabling entrepreneurs to focus more effectively on business operations, expansion and employment generation.
Automatic Approval Mechanism
One of the most important provisions is the introduction of deemed approval. Eligible applications that remain pending beyond the prescribed timeline will automatically be treated as approved. The mechanism is intended to improve administrative accountability and prevent investments from being delayed because of departmental inaction.
MSME Services Simplified
MSMEs will be able to secure water-supply permissions through self-declaration, while the registration of societies and firms will be completed through time-bound processes. Eligible building permissions may also be issued on the basis of self-certification or certification by authorised professionals.
Safeguards Remain Intact
The trust-based framework will not eliminate regulatory oversight in sectors involving higher environmental, structural, industrial or public-safety risks. Such projects will continue to require technical scrutiny, statutory clearances and physical inspections to ensure that business facilitation does not compromise safety or environmental safeguards.
Departments Brought Together
The legislation initially brings 43 services offered by eight state government departments within the risk-based approval framework. Additional services may be included subsequently with the approval of the Executive Council, allowing the system to expand progressively across government departments.
Three-Tier Monitoring Structure
A three-tier institutional monitoring mechanism will oversee implementation. State-level committees headed by the Chief Secretary and district-level committees chaired by Collectors will function under the guidance of a council headed by the Chief Minister.
Digital Ecosystem Strengthened
The reform complements Chhattisgarh’s OneClick single-window platform, which provides businesses with integrated access to registrations, licences, clearances, approvals and other investor services. The state government describes the digital platform as part of its broader effort to deliver speed, simplicity and transparency to entrepreneurs.
MSMEs Gain Relief
The state government expects more than 15 lakh MSMEs to benefit from the new framework. Reduced documentation, fewer inspections, time-bound decisions and automatic approvals are expected to lower the cost and time involved in establishing and operating businesses.
Investment Climate Strengthened
The legislation represents a shift from an inspection-oriented regulatory model to one based on trust, accountability and risk assessment. Its success, however, will depend on clear rules, reliable digital infrastructure, transparent risk classification and effective grievance-redressal systems.
Policy Implementation Crucial
Once operationalised, the law could improve regulatory predictability and make Chhattisgarh more competitive in attracting manufacturing, services and MSME investments. It may also serve as a policy model for other states seeking to balance business facilitation with regulatory oversight.
