Delhi LG reviews deregulation drive, sets June 30 deadline for pending reforms

Delhi's LG reviewed the city's deregulation efforts to enhance business and living conditions, directing reforms to be completed by June 30, 2026.

Lieutenant governor Taranjit Singh Sandhu on Friday reviewed the progress of Delhi’s deregulation exercise aimed at improving ease of doing business and ease of living in the capital, and directed departments to complete pending reform measures by June 30, 2026.

Officials said the reforms are focused on land use, construction approvals, utilities and labour regulations, among other sectors. (RAJ K RAJ /HT PHOTO)

Officials informed the LG that the deregulation exercise is being carried out in two phases in line with the Centre’s broader push to reduce the compliance burden and simplify governance procedures. The cabinet secretariat launched Phase 1 of the exercise in January 2025, followed by Phase 2 in January 2026.

In a post on social media platform X after chairing a meeting of senior officials, Sandhu said, “Chaired a meeting of senior officials of Delhi to review the progress of the Deregulation Exercise being undertaken to strengthen Ease of Doing Business and consequential Ease of Living in Delhi…”

The LG said Delhi had improved its standing in the logistics ease across different states (LEADS) rankings. “Happy to note that Delhi has progressed from ‘Achievers’ status to ‘Exemplar’ status in the 2025 LEADS rankings among UTs,” he said.

Officials said the reforms are focused on land use, construction approvals, utilities and labour regulations, among other sectors.

A presentation reviewed during the meeting showed that Phase 1 included digitisation of land-use and change-of-land-use applications, simplification of building plan approvals, liberalisation of trade licences and integration of Delhi’s single-window clearance system with the National Single Window System.

It was also discussed that several measures remain under implementation at various stages. These include introducing a flexible zoning framework for mixed-use development, reducing land loss in industrial plots due to building regulations, rationalising minimum road-width norms for rural industrial areas and increasing the role of empanelled third parties in building approvals and joint inspections.

The LG also directed officials to complete the remaining reforms within the timeline fixed by the Centre. “Advised officers to ensure implementation of all remaining priority areas identified by the Government of India for ease of doing business reforms by June 30, 2026, without fail,” he said.

The Delhi Fire Services has also proposed enabling inspections through accredited third parties and extending the validity of fire no-objection certificates. The presentation to the LG stated that the proposal for amendments to the Delhi Fire Safety Rules, 2010, had received approval from the high-level governance mechanism.

The LG, in his post, said the administration was working towards a “permitted until prohibited” ecosystem by removing long-standing regulatory hurdles and simplifying governance frameworks.

He added, “While we are fast-tracking the Omnibus Ease of Doing Business Bill, 2026, to streamline approvals and simplify compliance, it is equally important to ensure that quality of service and safety standards are upheld across all sectors.”

Officials said the proposed Ease of Doing Business Bill, 2026, envisages a multi-tier structure involving an Ease of Doing Business Council chaired by the chief minister, an executive committee headed by the chief secretary and district-level executive committees for approvals related to MSMEs.