An Excemplary Online Single Window Clearance System – Paramount to Ease of Starting Business

Abstract

Infrastructure is one of the basic requirement to do business and as it is the basic requirement it is considered as one of the eight parameters on which Ease of Doing Business in States is measured. The parameter is termed as ‘obtaining infrastructure related utilities’ and measures how easy it is to obtain infrastructure related utilities like electricity or water connections and clearances. Any investor who seeks to invest and initiate in any form of business has to obtain a minimum infrastructure without which business cannot be initiated. To start a business in Kerala, an investor based on the nature, type and other features of the business has to get clearances from 15 government departments and is not a simple process. Approaching each department and undergoing procedures to get the particular clearance is tedious, time consuming and costly process. This curbs ease of starting business in Kerala. From reviewing available literature regarding this aspect, a theoretical model was developed, which States that the availability of an ideal online single window clearance system can create Ease of Starting Business. The present study aims to analyse the effectiveness of an ideal online single window clearance system in creating easiness to obtain infrastructure related utilities. The study finds that there is a partial availability of features of an ideal online single window clearance system and concludes that the online system is not effective in creating easiness in obtaining infrastructure related utility clearances and hence there is no ease of starting business.