Thiruvananthapuram: The state govt is considering amending service rules to enable disciplinary action against officials for delays or failure to act on investment proposals, as part of an overhaul of the present single-window clearance system. The govt assesses that the system failed to effectively exercise its statutory powers.SARAL Keralam (Simplified and Accelerated Regulatory Approvals and Licensing), the framework for which the govt has accorded in-principle approval, sets a maximum processing time of 75 days for eligible investment proposals. It will also introduce a new structure for technical scrutiny, appraisal and final statutory approval.According to an industries department order issued on Friday, the existing Kerala State Single Window Clearance Board and District Single Window Clearance Boards already had statutory powers to issue licences, permits, clearances and NOCs, but they have not been “effectively exercised.”Former chief secretary V Venu said the proposed statutory backing could give the single-window mechanism the authority it had lacked. “If we can give more teeth to the mechanism through statutory backing, it would be of great advantage to the state,” he said.However, officials will not have to clear proposals merely to meet the deadline, as the framework separates technical scrutiny from final statutory approval. The departments and agencies concerned will continue to examine proposals based on their statutory and technical expertise. The order also states that there will be no deemed approvals.The 75-day timeline begins with submission of a complete application through the online portal or physical mode. Preliminary scrutiny and registration will take up to 10 days, technical scrutiny by departments in 30 days, consolidation by the appraisal body in 15 days and the final decision by the clearance authority in 20 days. The integrated enterprise clearance certificate will be issued on the day of the final decision.The order cites the consequences of prolonged delays in statutory approvals for introducing the time-bound mechanism. Such delays can lead to cost overruns, weaken projects’ competitive position through delayed market entry and result in projects moving to destinations with more efficient regulatory frameworks.SARAL Keralam will apply to projects involving capital investment of more than Rs 25 crore. Those involving investment up to Rs 50 crore will be handled by a district-level mechanism, with the district collector heading the final approval committee. Projects above Rs 50 crore will come under a state-level mechanism chaired by the chief secretary. Investments up to Rs 25 crore will continue under the existing mechanism.
