The Planning Commission will release a report in 3-4 weeks rating various States on the ease of doing business, said Arun Maira, Member, Planning Commission.

There are six or seven major issues that affect the business climate. The ratings based on the feedback from stakeholders will help States correct some of the issues, including regulatory issues, affecting the business climate, he said.

With issues relating to regulation being considered a major hindrance it was decided to have a common framework and identify six or seven contentious areas and address them.

There will be a process to assess a statute in each State and the experience of small and big industries in dealing with those statutes, Maira said, while releasing a report on Manufacturing in Tamil Nadu — A Regulatory Road Map by the Madras Chamber of Commerce and Industry.

The Commission will not rank the States but rate them in a ‘spider chart,’ which is a graphical method of displaying multivariate data. “Each State has its own problem and there is no uniform solution. But it would be possible to adopt some of the good practices followed by others,” he said.

TT Srinivasaraghavan, Managing Director, Sundaram Finance, said while everybody is talking about the ‘Gujarat model’, there is also a reason to have a Tamil Nadu model when it comes to manufacturing.

The State has a vibrant education system, infrastructure and skill to support the manufacturing sector.

“There is no reason why Tamil Nadu cannot be commanding heights of manufacturing excellence,” he said.

The report said labour regulation followed by pollution-related laws are perceived by firms to have the highest negative impact on their business. Secondly, archaic provisions in the Factories Act and lack of flexibility in hiring contract labourers are critical issues, said Deepa Karthykeyan, Director, Athena Infonomics, a research firm, which did the study for the chamber.

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