Puducherry Assembly passes four reform bills aimed at boosting ease of doing business

Puducherry — September 18, 2025 The Puducherry Union Territory administration today cleared four key reform bills in the Legislative Assembly aimed at simplifying regulatory processes, reducing red-tape, and improving investment climate. These legislative changes are being seen as part of a broader push to strengthen urban governance and make Pondicherry an attractive destination for businesses. Chief among the new laws is the Puducherry Ease of Doing Business Bill, 2025. It establishes strict timelines for all approval stages required for industries, commercial establishments and other business operations. The bill introduces the concept of “deemed approvals” where, if a government office does not act within prescribed time-limits, the permission is automatically considered granted. Penalties for delays by authorities have also been prescribed. Complementing this, amendments have been made to the Town and Country Planning Act to expedite land use permissions and reduce bureaucratic delays. Under the revised Planning Act, approval processes that earlier involved several rounds of inspections will see streamlined procedures. In many cases, requirements for physical inspection will be minimized if certain pre-conditions are met. The Municipalities Act and Commune Panchayat Act have also been amended as part of the reform bundle. One notable change is that trade licenses issued by local bodies will now have a validity of five years, up from shorter periods previously common. Additionally, several licensing requirements tied to frequent renewals and inspections have been simplified or abolished in non-high-risk cases. Government officials argued that these steps are vital to promoting investment, business confidence, and job creation in the UT. They expect that faster approvals, clearer regulatory timelines, and reduced bureaucratic friction will attract both local entrepreneurs and external investors. Urban governance too is expected to benefit: less paperwork, more accountability, and greater predictability in licensing and permitting. Opposition parties, however, raised questions about oversight and safeguards. Some legislators asked how risk assessment would be handled in the absence of frequent inspections, whether local infrastructure can keep up with increased commercial activity, and whether small businesses and informal vendors might be disadvantaged by the reforms. During the assembly session, DMK, Congress, and independent MLAs pushed for an extension of the sitting to discuss pressing issues such as drinking water shortage, delayed projects, and welfare scheme implementation. Their request was rejected, and several members were evicted for protesting in the well of the House. The Speaker defended the urgency of passing the reform bills, saying that the government cannot delay legislative action any further and that these measures are necessary for Puducherry’s long-term growth and competitiveness. Citizens and business associations have generally welcomed the reforms, though many expressed hope that implementation will be immediate, transparent, and supported by capacity building in local government departments. In summary, today’s legislative changes mark a significant shift in Puducherry’s approach to governance—prioritizing speed, predictability, and ease of doing business. Whether the reforms translate into real growth will depend largely on how the laws are enforced and how effectively they bridge regulatory gaps without compromising public accountability.