- Chhattisgarh Assembly passed bill for easier business operations.
- New law implements risk-based, trust-based approval framework.
- Low-risk businesses receive faster approvals via self-certification.
- Forty-three services included; pending applications get auto-approval.
The Chhattisgarh Assembly on Thursday passed the Chhattisgarh Ease of Doing Business Bill, 2026, marking a major step towards simplifying business regulations and promoting investment in the state.
Introduced under the leadership of Chief Minister Vishnu Deo Sai, the legislation is set to make Chhattisgarh the first state in the country to implement a risk-based and trust-based business approval system.
The Bill seeks to streamline the process of establishing and operating businesses by reducing unnecessary compliance requirements and creating a faster, more transparent and investor-friendly regulatory framework, with a particular focus on supporting micro, small and medium enterprises (MSMEs).
Low-Risk Businesses to Benefit From Faster Approvals
Under the new framework, industries and commercial establishments will be categorised according to their size and risk profile. Low-risk businesses will receive faster approvals, while high-risk projects will continue to undergo technical scrutiny and physical inspections.
The legislation introduces self-certification and certification by licensed engineers, architects and other authorised professionals for low-risk enterprises, reducing the need for frequent departmental inspections.
The Bill also eliminates mandatory annual licence renewals and provides for risk-based approvals, easing compliance requirements and allowing businesses to focus more on their operations.
Self-Declaration, Auto-Approval to Simplify Compliance
The new law enables MSMEs to obtain water supply permissions through self-declaration and facilitates time-bound registration of societies and firms.
Building approvals for eligible businesses can also be secured through self-certification or certification by authorised professionals, further reducing procedural delays.
Applications that remain pending beyond the prescribed timeline will qualify for deemed approval through an auto-approval mechanism. However, projects classified as high-risk will continue to be subject to technical evaluation and inspections before receiving clearance.
43 Government Services Brought Under New Framework
The Bill brings 43 services offered by eight state departments under the risk-based approval system. It also includes provisions to add more services in the future with the approval of the Executive Council.
To oversee implementation, the government has established a three-tier monitoring mechanism. The structure includes committees headed by the Chief Secretary at the state level and District Collectors at the district level, functioning under the guidance of a council chaired by the Chief Minister.
The Chhattisgarh government expects the reform to benefit more than 15 lakh MSMEs by reducing the time and cost involved in setting up and operating businesses while maintaining oversight of high-risk sectors. The initiative is aimed at strengthening the state’s transparent, predictable and investment-friendly business environment.
