Niti Aayog, the Indian government's policy think tank, has proposed a significant shift in the regulatory landscape by recommending perpetual validity for licenses, permits, and No Objection Certificates (NOCs). This move aims to foster a trust-based regulatory framework, reducing the burden of compliance for businesses and individuals alike.
The recommendation, spearheaded by a panel headed by Niti Aayog member Rajiv Gauba, suggests that licenses, permits, and NOCs should remain valid indefinitely, except in specific cases where renewal is necessary. These exceptions would primarily be based on concerns related to national security, potential harm to public safety, human health, environmental protection, or overriding public interest. The proposal has been sent to various ministries and departments for consideration.
Even in situations where renewal is deemed essential, the panel has advocated for extended validity periods, suggesting terms of five or ten years. This approach aims to strike a balance between regulatory oversight and minimizing bureaucratic hurdles.
Furthermore, Niti Aayog has emphasized the importance of proportionate and risk-based licensing and compliance requirements. The think tank suggests that licensing and compliance requirements must be proportionate and graded by risk and that prior approvals for licenses, permits, and NOCs should not be required in ordinary cases. According to the proposal, any activity not explicitly prohibited by law should be exempt from prior permission.
In addition to perpetual validity, the panel has proposed that inspections be conducted by accredited third parties selected through computer-assisted, randomized processes based on risk assessment. This measure seeks to ensure impartiality and efficiency in regulatory oversight.
If implemented, these recommendations could significantly transform the Indian regulatory environment. By reducing the frequency of renewals and streamlining inspection processes, businesses could save time and resources, fostering a more conducive environment for investment and growth. The shift towards a trust-based framework could also promote greater transparency and accountability in governance. However, it is crucial to ensure that adequate safeguards are in place to address potential risks to national security, public safety, health, and the environment. The government's response to these recommendations will be pivotal in shaping the future of regulation in India.
