‘More efforts needed for investment’

Reviewing the progress made towards facilitating ease of doing business in the country, Prime Minister Narendra Modi said during the meeting with secretaries of all Union ministries as well as chief secretaries of states said that though some positive developments have been made by some states towards enhancing investment, greater efforts are required to maintain the tempo and create a positive perception of the country among overseas investors.

The strict directive given by Mr Modi comes in the wake of the fact that the government has not been able to get the bankruptcy bill passed in Parliament. If passed, the proposed legislation will be a major step towards ensuring ease of doing business in India.

The Insolvency and Bankruptcy Code 2015, which will to replace the existing bankruptcy laws, aims to enact a comprehensive law to deal with insolvency of corporates and simplify investors’ exit.

The proposed law will cover individuals, companies, limited liability partnerships, partnership firms and proposes a time-bound framework of 180 days, extendable by another 90 days. Currently, it takes, on average, more than four years to resolve insolvency in India.

Last month, Union finance minister Arun Jaitley had expressed hope that the bankruptcy legislation would be passed in the second part of the Budget Session when it begins again on April 25.

The government is keen to get it passed along with the Goods and Services Tax bill, as this would give a push to the reforms process, sources said.