Delhi sets up 12-member panel to set Capital on road to economic recovery

New Delhi: The Delhi government has formed a 12-member expert committee to explore economic reform measures to help businesses in the city recover from the impact

New Delhi: The Delhi government has formed a 12-member expert committee to explore economic reform measures to help businesses in the city recover from the impact of Covid-19, the government said in a statement on Thursday.

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In an interview with HT earlier this week, deputy chief minister Manish Sisodia said the state government’s GST and VAT collections in the first quarter of the year dropped to one-third of what it was in the same period last year, falling from ₹7,275 crore to ₹2,500 crore.

As per an order, signed by Ravi Dhawan, special CEO of the Delhi Disaster Management Authority (DDMA), the committee will analyse the measures to be taken by various agencies, departments and businesses, and explore moves that improve the ease of doing business and shorten the process of economic recovery from the impact of the pandemic.

The committee will be headed by Jasmine Shah, vice-chairperson of the Dialogue and Development Commission (DDC), an advisory body to the Delhi government.

The committee will also be comprised of commissioners of the labour department and industries department, South Delhi Municipal Corporation, special secretary of the environment department, and representatives of various industries including trade, manufacturing, automobile, finance and hospitality among others, said the statement.

Shah said, “The Covid-19 pandemic has caused a devastating economic impact — nationally and in Delhi… Through this committee, we look forward to collaborating with key industry representatives and identifying specific additional measures that government agencies can take to shorten the process of economic recovery.”

According to the DDMA’s order, “The committee shall explore reform measures that improve ease of doing business in Delhi and shorten the process of economic recovery from the impact of Covid-19.”

The order further said, “The committee shall explore the possibility of renewal or automatic extension of existing licenses issued by various department and local bodies… without penalty or interest. The exception will be in categories such as excise, pollution control, or fire, where safety or revenue-related issues are involved.”

“The committee shall explore the requirement or necessity of new licenses or NOCs [no-objection certificates] issued by the various departments to identify licenses that can be abolished or replaced with only prior intimation,” the order read.

This committee will also explore provisions of online license issuing systems or doorstep delivery of licensing systems. The key focus of the committee will be exploring economic reform measures that have the potential for revenue mobilisation for the Delhi government.

“The committee should explore international best practices that mega-cities and countries around the world are taking to enable economic recovery from Covid-19. The committee shall also examine and suggest penalties or fines or interest imposed on public or business due to the pandemic, which can be waived off to remove undue financial hardship,” the order read.

Jayati Ghosh, professor of economics at Jawaharlal Nehru University, said, “At this juncture, an expert committee to explore economic reforms can play an important role. It is high time for Delhi to have an urban employment guarantee scheme. The committee can play important role in such policy drafting. The committee can also formulate more labour-intensive activities in the days to come.”