NEW DELHI: The government wants to rid the country of the 'inspector raj' in the next edition of reforms that states must undertake to help improve their ease of doing business rankings. States have been asked to completely overhaul their inspection regimes, including creation of a central inspection agency for all departments such as environment, labour and income tax.
The industry department has drawn up a detailed plan, taking cues from countries such as Armenia, Dominica, Mexico, Moldova, Liberia, Kyrgyzstan and the Netherlands, which have similar systems in place.
"If we can do away with unnecessary inspections it will be a game-changer for the industry. It is the biggest grouse of businesses," a senior government official said.
The central agency will conduct a risk assessment for each company to decide if an inspection is required or self certification would suffice. It will be required to inform in advance of the inspection and submit a report within 24 hours to the competent authority.