Now, upcoming industries need not provide bank guarantee

State govt has eased norms by making selfcertification mandatory for all industries, except industries based on risk profiling.

VK JANJUA, principal secretary, labour

PATIALA : The state government has eased norms for setting up new industries by making selfcertification mandatory for all industries, except industries based on risk profiling, as per a notification issued by the labour department.

Upcoming industries will no longer have to provide a bank guarantee. Principal secretary, labour, VK Janjua, said, “Earlier, the applicant had to give a bank guarantee along with a self- certificate. Later, if any violation was found in his establishment, the bank guarantee could be seized. If the applicant wanted to re-opt for the scheme, he had to give double the bank guarantee.”

“This was a long pending demand of industrialists and we have made some changes in the self-certification scheme. Now, they don’t have to give bank guarantee and they will receive all approvals within 15 days.”

He added, “Now, entrepreneurs do not have to visit government offices repeatedly. Officers’ visit to units will also be limited.”

Earlier, it took around 30 days to get clearance under the scheme. As per the labour department, the self-certification scheme was started in Punjab in 2013. Earlier, the scheme was only applicable to micro, small and medium enterprises (MSMES). Now the scheme will also be compulsory for startups, IT/ITES, life sciences and biotechnology industries.

Patiala Industry Association general secretary HPS Lamba said, “The state government is only facilitating new industrialist. Things have not changed for the old ones. Recession has hit industries in the state and we are going through a tough time. ”

“Though the state government has claimed that the self certification scheme was started in 2013, but the scheme was not implemented,” he added.