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Now, WB angst over UP law & order

THE WORLD Bank is concerned about UP?s law and order situation and growing red tapism that has made a mockery of the much-touted single window system in the State. The WB feels a bad perception about law and order was having an adverse impact on investment in Uttar Pradesh. Besides, the WB feels there is a need to bring improvement on the power generation front, development of infrastructure facilities, better road connectivity and amendment in labour laws.

india Updated: May 25, 2006 01:36 IST

THE WORLD Bank is concerned about UP’s law and order situation and growing red tapism that has made a mockery of the much-touted single window system in the State.

The WB feels a bad perception about law and order was having an adverse impact on investment in Uttar Pradesh.

Besides, the WB feels there is a need to bring improvement on the power generation front, development of infrastructure facilities, better road connectivity and amendment in labour laws. The WB has submitted an action plan to the State Government to expedite pace of industrialisation in the State.

According to sources, the WB conveyed its observations along with the action plan to senior officials of State Government when the WB country director Michael Carter had a meeting with them on Tuesday. Senior officers of State Government, however, asserted that the WB expressed satisfaction over improvement in the situation on the financial front.

Officials also countered the WB observations on the law and order situation.

Quoting statistics, officials asserted that there had been a significant improvement on this front. The WB, however, said it had based observations on the feedback from industry representatives and media reports.

Lashing out at the rampant red tapism, the WB felt that the single window system had been virtually made redundant in view of growing number of clearances needed to set up any industry.

As per the WB, at least 13 approvals were needed to set up a new industrial unit.

In addition to this 10 approvals were needed to start the industrial unit.

Similarly, an industrialist needed to spend a long time waiting to close down an industrial unit.

According to WB, the average period needed to close an industry in UP was 15 years against 8 years in Karnataka and 10 years in Rajasthan. This is much higher if compared to averages in other parts of the world.

The WB also felt that the time needed to execute any contract was nearly 3 years in UP against 1.6 years in Maharashtra.

First Published: May 25, 2006 01:36 IST