By Prime Minister Narendra
Copyright thehindu
Contending that the new legislations passed in the Puducherry Assembly on Thursday (September 18, 2025) align with the reforms proposed by Prime Minister Narendra Modi to make the country self-reliant, the AINRC-led government stated that the introduction of the Puducherry Ease of Doing Business (Service Delivery) Bill, along with amendments to the Puducherry Town and Country Planning Act and the Puducherry Municipalities and Commune Panchayat Acts, marked the beginning of “a package of landmark reforms.”
An official communication issued by the Information Department said that the Prime Minister, during his Independence Day address, spoke about his government’s decision to abolish over 40,000 “unnecessary compliances” and to repeal more than 1,500 outdated laws. Mr. Modi, in his address, had expressed a firm commitment to creating “a modern, efficient and citizen-friendly ecosystem, where laws, regulations and processing are simplified, entrepreneurship is encouraged to make every Indian contribute toward a Viksit Bharat.”
In bringing out the new legislations in the Assembly, the government has identified 23 priority areas, which directly impact business approvals, and adopted measures to reduce the compliance procedures. Topping the list of legislations was the Puducherry Ease of Doing Business Bill, which provided timelines for every stage of approval, provisions for deemed approval, and penalty for delay(s). The provisions will facilitate timely approvals and clearances for industries, businesses and commercial establishments, the communication said.
Amendments to Municipalities and Commune Panchayats Acts would ensure that there was no need for physical inspection, and licences issued by local bodies were valid for a full five years. With the amendment made to the Town and Country Planning Act, cumbersome and time-consuming procedures related to change in land-use pattern were removed.
MSMEs in residential areas
Besides providing provisions for premium Floor Area Ratio (FLR), Transferable Development Rights, and land pooling for urban spatial planning, the building bylaws have been amended to give entrepreneurs “instant and user-friendly access” to permitted land-use categories and other details.
The legislation allows the establishment of MSMEs in residential, commercial, and agricultural zones without requiring a Change of Land Use (CLU) certification. Residential buildings for industrial workers are permitted within industrial estates and industrial zones without CLU approval. The minimum road width requirement for setting up industries has been eased from 5 metres to 4.5 metres, making it simpler to establish new units.
The government has revised coverage, FLR, and height limits to permit an increase in permissible built-up area, supporting more flexible and efficient use of Industrial land. The validity of No Objection Certificate (NOC) has been increased from one year to three years. The fire NOC will be automatically issued based on third-party inspection and self-certification.
The government also notified Puducherry MSME (Exemption) Act, 2024, simplifying business commencement process for micro, small, and medium enterprises by granting a three-year exemption from certain approvals and inspections with entrepreneurs only needing to submit a declaration of intent to receive an Acknowledgement Certificate equivalent to deemed approval.
