Haryana Govt Passes Right to Business Bill With 15-Day In-Principle Approval for New MSME Manufacturing Units

Chandigarh, Sep 5 (KNN) Haryana government has passed the Haryana Right to Business Bill, 2026, providing for in-principle approval within 15 working days for eligible micro, small and medium enterprises (MSMEs) seeking to set up new manufacturing units or expand existing facilities.

The legislation also provides for deemed approval if no decision is taken within the stipulated period, aiming to reduce procedural delays and improve the ease of doing business in the state.

CIPA Valid for 36 Months

Under the Bill, eligible new manufacturing MSMEs and existing manufacturing MSMEs undertaking expansion can obtain a Certificate of In-Principle Approval (CIPA) while completing the process of securing regular statutory approvals.

The District Nodal Agency, headed by the concerned Deputy Commissioner, will issue the CIPA within 15 working days. If no decision is taken within this period, the application will be deemed approved.

The CIPA will remain valid for 36 months. However, it does not exempt enterprises from obtaining mandatory regular approvals. Instead, it provides them a 36-month window to secure the requisite clearances while proceeding with the establishment or expansion of their units.

Restrictions on Inspections

During the CIPA's validity, routine inspections and coercive measures will remain restricted. The legislation currently provides protection from inspections by six departments, with the state government considering expanding the coverage to additional departments.

The 36-month CIPA period will also serve as a moratorium period, subject to safeguards. Inspections may still be carried out based on complaints or in cases involving land-use violations, unauthorised construction, public safety, structural integrity or fire-safety concerns, subject to a recommendation from the head of the concerned department.

The Bill also provides a time-bound grievance redressal mechanism for eligible enterprises aggrieved by coercive action during the moratorium period.

The state government said the legislation seeks to promote trust-based governance in line with its 'Minimum Government, Maximum Governance' approach and facilitate faster establishment and expansion of manufacturing MSMEs.

(KNN Bureau)