Assembly passes landmark legislation to simplify business approvals, reduce compliance burden, and boost investment; nearly 1.5 million MSMEs expected to benefit.
Raipur | July 16, 2026: In a landmark reform aimed at transforming the state’s business ecosystem, the Chhattisgarh Legislative Assembly has passed the Chhattisgarh Ease of Doing Business Act, 2026, making Chhattisgarh the first state in India to adopt a comprehensive risk-based regulatory framework for industries and businesses.
The legislation is designed to replace traditional compliance mechanisms with a modern, technology-driven system that classifies businesses according to their operational risk. The move is expected to simplify regulatory procedures, improve transparency, reduce compliance costs, and encourage fresh investments across the state.
Risk-Based Regulatory Framework Introduced
Under the new Act, businesses will be categorized based on their level of operational risk. Low-risk enterprises will enjoy simplified compliance procedures and faster approvals, while larger industrial units will continue to undergo stricter scrutiny. In specified cases, applications not processed within the prescribed timeline will automatically receive deemed approval, ensuring time-bound delivery of government services.
Self-Certification to Replace Routine Inspections
One of the most significant reforms introduced under the Act is the adoption of a trust-based compliance system. Instead of frequent inspections, eligible businesses will be allowed to submit self-certification confirming compliance with applicable regulations. Entrepreneurs may also obtain certification from licensed engineers, architects, or other authorised professionals wherever required, reducing procedural delays without compromising accountability.
No Annual Licence Renewal for Many Businesses
The legislation also eliminates the requirement for annual renewal of licences and permits in several cases. This reform is expected to substantially reduce paperwork, save time, and enable entrepreneurs to focus more on business expansion and job creation rather than repetitive regulatory formalities.
43 Government Services to Come Under New System
In the first phase, the Act will cover 43 public services across eight government departments. Entrepreneurs will be able to obtain water connections through self-declaration, secure building plan approvals through self-certification or authorised professionals, and receive industrial society registrations within fixed timelines. The government has also kept provisions open to notify additional services under the framework in future.
Three-Tier Monitoring Mechanism
To ensure effective implementation, the government has created a three-tier institutional structure. An Executive Council chaired by the Chief Minister will provide overall policy direction, while a State-Level Committee headed by the Chief Secretary and District-Level Committees led by District Collectors will supervise implementation across the state.
Major Boost for MSMEs and Investors
The state government estimates that nearly 1.5 million Micro, Small and Medium Enterprises (MSMEs) will directly benefit from the new legislation. By shifting from an inspection-based system to one built on trust, transparency, self-certification, and risk-based regulation, the Act is expected to significantly reduce the time and cost of establishing and operating businesses while strengthening investor confidence.
A Landmark Reform for Chhattisgarh
With the passage of the Chhattisgarh Ease of Doing Business Act, 2026, the state has positioned itself as a pioneer in regulatory reforms. The legislation is expected to accelerate industrial growth, attract domestic and global investments, improve governance, and create a more competitive business environment while maintaining effective oversight over high-risk sectors.
