Raipur – The Chhattisgarh Legislative Assembly today passed the Chhattisgarh Ease of Doing Business Act, 2026, making Chhattisgarh the first state in the country to introduce a risk-based regulatory framework that classifies industries and businesses according to their level of risk and determines approvals and compliance requirements accordingly.
The new legislation marks a significant step towards simplifying government procedures, reducing regulatory burden, and creating a transparent and business-friendly ecosystem. The reforms are expected to benefit Micro, Small and Medium Enterprises (MSMEs) the most by making it easier to establish and operate businesses in the state.
Under the Act, industries and businesses will be categorized into different risk levels based on the nature and scale of their operations. Low-risk enterprises will receive faster approvals and simplified compliance, while larger industries will be granted deemed approvals if applications are not processed within the prescribed timelines. The framework ensures that smaller businesses are not subjected to the same regulatory requirements as large industrial establishments.
To reduce compliance costs and improve efficiency, low-risk businesses will be allowed to submit self-certifications in place of routine government inspections. Entrepreneurs may either self-declare compliance with applicable regulations or obtain certification from licensed engineers, architects, or other authorized professionals. This approach is expected to expedite approvals while maintaining transparency and accountability.
The Act also introduces a simplified, risk-based compliance regime by eliminating the need for annual renewal of licences and permits in many cases, allowing entrepreneurs to focus more on business growth and operations.
Several public services will be streamlined under the new framework. Entrepreneurs will be able to obtain water connections through self-declaration, industrial society registrations will be completed within prescribed timelines, and building plan approvals may be secured through self-certification or certification by authorized experts. In specified cases, applications that are not processed within the stipulated timeframe will receive deemed approval.
In the first phase, 43 services across eight departments will be brought under the provisions of the Act. Additional services may be notified and included in the framework with the approval of the Executive Council.
To ensure effective implementation, the Act provides for a three-tier institutional mechanism. A State-Level Committee chaired by the Chief Secretary and District-Level Committees chaired by the respective District Collectors will monitor implementation under the overall guidance of an Executive Council chaired by the Hon’ble Chief Minister.
Nearly 1.5 million MSME entrepreneurs across Chhattisgarh are expected to benefit from these reforms. By replacing a system characterized by frequent inspections with one based on trust, self-certification, risk-based regulation, and time-bound service delivery, the Act is expected to reduce the time and cost of doing business while ensuring effective oversight of higher-risk sectors.
The Chhattisgarh Ease of Doing Business Act, 2026 represents a landmark reform in the state’s governance framework and reinforces the Government of Chhattisgarh’s commitment to promoting investment, entrepreneurship, and sustainable economic growth through a modern, efficient, and citizen-centric regulatory environment.