Raipur: Under the leadership of Chief Minister Shri Vishnu Deo Sai, Chhattisgarh has taken a landmark step towards promoting industry, investment and business in the state. The Chhattisgarh Legislative Assembly today passed the ‘Chhattisgarh Ease of Doing Business Bill, 2026’. With this, Chhattisgarh is set to become the first state in the country to introduce a risk-based and trust-based business permission system for industries and commercial establishments.
The Bill aims to simplify procedures related to the establishment and operation of industries and businesses, reduce unnecessary regulatory compliances, and create a more transparent, faster and entrepreneur-friendly business environment, particularly for Micro, Small and Medium Enterprises (MSMEs).
Under the proposed framework, industries and commercial establishments will be classified into different risk categories based on their size and the nature of their activities. Small businesses and enterprises falling under the low-risk category will be eligible for simplified and faster approvals. For projects involving higher risks, the existing system of necessary technical scrutiny and time-bound approvals will continue. This differentiated approach will ensure that small businesses are not subjected to complex procedures designed for large and high-risk industrial projects.
Under the new system, frequent departmental inspections for low-risk enterprises will be replaced, wherever applicable, by self-certification or certification by licensed engineers, architects and other authorised professionals. This will make the approval process faster, simpler and more accountable while placing greater emphasis on compliance through trust and professional certification.
The Bill also proposes to eliminate the mandatory requirement of annual renewal of licences and permissions and introduce a risk-based permission system. This will provide entrepreneurs relief from repetitive and unnecessary formalities, allowing them to focus more effectively on the expansion, management and day-to-day operations of their businesses.
For MSME units, permission related to water supply may be granted on the basis of self-declaration. Registration of societies or firms will be undertaken through a time-bound process, while building permissions may be granted on the basis of self-certification or certificates issued by authorised experts.
In eligible cases, if the concerned department fails to take a decision within the prescribed time limit, the permission will be deemed to have been automatically approved (auto-approval). However, for projects falling under higher-risk categories, the existing provisions for technical scrutiny and physical inspection will continue to remain applicable. This ensures that simplification of procedures does not come at the cost of safety, regulatory oversight or public interest.
The Bill brings 43 services provided by eight departments of the state government under the risk-based permission framework. Additional services may also be brought within its ambit in the future, subject to approval by the Executive Council, as required.
To ensure effective implementation and continuous monitoring of the reforms, the Bill provides for a three-tier monitoring mechanism. At the state level, a committee headed by the Chief Secretary will oversee implementation and monitoring. At the district level, a committee headed by the Collector will be responsible for monitoring implementation and ensuring effective delivery of the reforms. Both committees will function under the guidance of the Council chaired by the Chief Minister.
The reform is expected to directly benefit more than 1.5 million Micro, Small and Medium Enterprises (MSMEs) across Chhattisgarh. According to the state government, a system based on trust, self-declaration and time-bound service delivery will help reduce the time and cost involved in starting and operating a business.
At the same time, the framework maintains a clear distinction between low-risk and high-risk activities. While low-risk businesses will benefit from simplified procedures and reduced regulatory burden, projects involving higher risks will continue to be subject to appropriate technical scrutiny, physical inspections and regulatory safeguards.
The Chhattisgarh Ease of Doing Business Bill, 2026 is expected to emerge as a significant milestone in creating a business environment in the state that is transparent, simple, predictable and investment-friendly.
By moving from a predominantly compliance-heavy approach towards a risk-based, trust-based and outcome-oriented regulatory framework, the state government seeks to make it easier for entrepreneurs to start, operate and expand businesses while ensuring that necessary safeguards remain firmly in place.
The reform is particularly significant for MSMEs, which form a major part of the state’s entrepreneurial ecosystem. By reducing repetitive permissions, inspections and renewals wherever the level of risk permits, the new framework seeks to improve ease of compliance, reduce administrative delays and create greater certainty for businesses and investors.
Overall, the Bill represents a major policy initiative aimed at balancing ease of doing business with effective regulation—making government processes faster and more predictable for entrepreneurs while retaining stronger scrutiny for activities where the level of risk demands it.
