Single Investment Clearance Window (as announced in Union Budget 2020)
Single Investment Clearance Window – As announced by the Finance Minister, Government has taken a view to enhancing the support to startups by providing easy and quick clearance mechanisms for investments. It is proposed to set up a new single-window investment clearance cell, which will cater to the financial needs of the startups in terms of all clearances and approvals related to funding/ financing.
The Investment Clearance Cell will be the authorized authority with respect to checking and granting funding to the startup for the achievement of objectives and growth. This initiative will motivate the entrepreneurs to set up businesses in India. The Government has invested a large amount of sum already in startup-related schemes and other initiatives as the future of India’s economy is seen improved when new ideas will be nourished in the form of startups. Moreover, it helps to improve India’s Ease of Doing Business (“EODB”) Rankings.
Usually, to avail of the benefits or grants under startup initiatives, applications have to be made to different departments which is a time-consuming process and also, every time the status of applicability needs to be checked individually for the particular scheme or license. Now as laid in the budget, an application under different departments has been consolidated to one application for grants/ licenses and documents to the investment clearance cell and details of the process that needs to be followed in each case shall also be in a simplified format made available to the businesses.
The proposal is to have a single contact point for investors in order to promote investment. It will be different from the existing state and ministry level ‘single window’ cells, which may have reduced the requirement for physical interactions, but have not eliminated the existence of multiple touchpoints.
Also, it also has been announced in the budget to set up the 5 new smart cities with the intent to promote more startups. Such cities shall be created under the PPP model. The Public-Private Partnership (PPP) is one of the best-suited means to invite players into the infrastructure sector. The PPP mode allows the government to work in partnership with private players with the intent to improve the efficiency, proper maintenance and better utilization of resources.
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Also Read: Budget 2020 : Vivad se Vishwas Scheme