India Regulatory Brief: India Ease of Doing Business Rankings, States Seek Mining Ordinance Concessions

Posted by Reading Time: 4 minutes

Regulatory brief logo

Government to Rank States on Ease of Doing Business

The Indian government is set to begin ranking states on the ease of doing business. The initiative will encourage state relaxation of dated legislation and establish a means for the federal government to identify poor performers.

The states will be ranked on the basis of: setting up and exiting business, registration of property, labor compliance, infrastructure availability, finance and tax issues and inspection reforms.

The move is in line with the Modi government’s competitive federalism’ agenda and will facilitative favorable reform for foreign investors.

India’s Mineral-rich States Seek Mining Ordinance Concessions

Mineral-rich states have sought to relax new guidelines from the Mines and Minerals Development and Regulation Amendment Ordinance. Though the Ordinance was designed to address emergent problems in India’s mining industry, states have faced difficulties implementing its provisions.

Goa and Karnataka are amongst the states urging improved state discretion and have accused central government of encroaching on state powers. Goa has called for a ten year extension to the lease period which is currently set at 50 years, while Karnataka’s Mines Minister, T.B. Jayachandra, is pressing to remove the 30 million tonnes annual production cap which was set by the Supreme Court.

Related Link Icon-IBRELATED: India’s Export Duties to Come Under Increased Scrutiny 

Jayachandra also suggested there would be difficulties granting mineral concessions through auction for resources that are on private and ‘patta’ land. He proposed that interim measures be taken to ease the process for granting these concessions, warning that existing demand and mineral reserves could encourage illegal mining.

Odisha is demanding that suggestions are taken from individual states before the MMDR’s implementation guidelines are decided, as well as petitioning the allocation of minerals in Odisha to Posco, a Korean owned steel plant. Meanwhile, Andhra Pradesh wants to remove limestone from notified minerals and amend Mineral Concession Rule, and Madhya Pradesh is requesting the transfer of mining leases for captive use on acquisition of the primary industry.

Bankruptcy Panel Report Seeks Changes in Companies Act

Last week, a government panel suggested changes in laws for developing an effective corporate insolvency regime to improve India’s ease of doing business rank.

The T K Viswanathan committee, constituted by the finance ministry, released a report suggesting changes in various pieces of legislation to ensure early detection and resolution of financial stress in companies and protect stakeholder interests. The report is the first step in the Center reform of the bankruptcy law.

However, the panel noted that developing an insolvency code would require more time due to the multiplicity of laws and adjudicatory forums governing insolvency matters in India. Nevertheless, sources in the finance ministry did not rule out tabling a code in the coming Budget session of Parliament.


About Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email or visit

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.


Related Reading-IB

IB Nov issue smallEstablishing Your Sourcing Platform in India
In this issue of India Briefing, we highlight the advantages India possesses as a sourcing option and explore the choices available to foreign companies seeking to create a sourcing presence here. In addition, we examine the relevant procurement, procedural and tax duty concerns involved in sourcing from India, and conclude by investigating the importance of supplier due diligence – a process that, if not conducted correctly, can often prove the undoing of a sourcing venture.

Taking Advantage of India’s FDI Reforms
In this edition of India Briefing Magazine, we explore important amendments to India’s foreign investment policy and outline various options for business establishment, including the creation of wholly owned subsidiaries in sectors that permit 100 percent foreign direct investment. We additionally explore several taxes that apply to wholly owned subsidiary companies, and provide an outlook for what investors can expect to see in India this year.

Passage to India: Selling to India’s Consumer Market
In this issue of India Briefing Magazine, we outline the fundamentals of India’s import policies and procedures, as well as provide an introduction to the essentials of engaging in direct and indirect export, acquiring an Indian company, selling to the government and establishing a local presence in the form of a liaison office, branch office, or wholly owned subsidiary. We conclude by taking a closer look at the strategic potential of joint ventures.