Assam Assembly passes slew of laws to facilitate investment

The Bill, which was passed with a voice vote, seeks to provide exemption from certain approvals and inspections for the establishment and operation of MSMEs in the state and to provide relief to the entrepreneurs from the ‘clumsy process of procuring license and approvals’ for their projects.

In the ‘Statement of Objects and Reasons’, the government has mentioned that the Bill is in line with the slew of measures taken by it during the past few years to promote investment and make Assam investor friendly.

“It is further considered necessary to have a law which shall provide for the exemption from certain approvals and inspections initially for 3 years in respect of Pollution Certificate, Factory License, Labour License, Urban Development Department clearance and other statutory authorities for establishment and operations of the MSMEs in the state of Assam except NOC for Fire safety and Electrification,” it stated.

The new provision is also expected to help generate employment, promote entrepreneurship and accelerate economic growth.

The Factories (Assam Amendment) Bill, 2020, was also passed in the Assembly today which allows to raise the threshold limit of number of workers in a factory from 10 to 20 (with aid of power) and 20 to 40 (without aid of power).

This is to facilitate ‘ease of doing business’ which will encourage setting up of more industries in the state and also boost organized labour employment in the state.

‘The Contract Labour (Regulation and Abolition) (Assam Amendment) Bill, 2020’ was also passed in the House to increase the threshold of number of workers in certain Sections under the principal Act.

Further, through ‘The Factories (Assam Second Amendment) Bill, 2020’, a new Section was inserted which gives power to the state government to exempt certain provisions of the Factories Act, 1948, for a period of 1,000 days from the date on which such commercial production starts.

A similar amendment to the Industrial Disputes Act, 1947, was also made through ‘The Industrial Disputes (Assam Amendment) Bill, 2020’ with the insertion of a new Section which will give power to the state government to exempt certain provisions of the Act for a period of 1,000 days from the date of establishment of new industrial establishment or new undertaking or class of new establishments or new undertakings.