NOC from Gram Panchayat necessary for new industries
| Date :06-Nov-2020 |
Staff Reporter :
Rural Development Department of State Government has superseded previous circulars and has issued a fresh circular virtually reverting to the previous system under which it is mandatory for industries setting up new projects or expanding existing one or construction activities, to obtain ‘No Objection Certificate’ (NOC) from Gram Panchayats concerned. Various departments of the Government ask the applicants to obtain NOC from Gram Panchayat concerned before starting any industry or taking up construction activities. In areas included in Panchayat Extension of Scheduled Areas (PESA) Act, there is provision for obtaining NOC of Gram Panchayat concerned before starting industry.
NOC from Gram Panchayat concerned is sought in case of non-agricultural permission and construction, permission for excavation of minor minerals, starting industry and obtaining necessary permissions relating to pollution, laying of pipelines for water supply, laying of gas pipeline network, creating network of power transmission lines, reservation of water from reservoir, construction of industrial infrastructure. Rural Development Department had issued circulars regarding the NOC issued by Gram Panchayat.
These circulars were issued on December 11, 2015; October 12, 2017; and September 14, 2020. Previously, Government had noted with concern the inordinate delays on part of Gram Panchayat in issuance of NOC. At some places, it had come to light that Gram Panchayats had cancelled NOC after issuing it. Hence, a provision was made that once a Gram Panchayat had issued NOC it could not cancel it. Further, as per the circular issued on October 12, 2017, if a Gram Panchayat failed to issue NOC within 30 days or time stipulated under relevant laws, the NOC would be ‘deemed to be issued’.
If an applicant sought such ‘deemed NOC’, the Block Development Officer (BDO) of Panchayat Samiti concerned was asked to issue the same after due scrutiny. This was done to accelerate the process for setting up industry, expansion of existing industry, or such projects. Now, Rural Development Department has decided to supersede all the previous circulars. It has issued a fresh circular on October 19, 2020. As per this new circular, Gram Panchayat concerned is expected to issue NOC to any industry or expansion project or activities mentioned above in area under its jurisdiction.
The Gram Panchayat should issue NOC within 30 days since receiving the application in this regard. If it refuses to issue NOC to a project, Gram Panchayat has to record in writing the reasons for refusal. If Gram Panchayat concerned fails to issue NOC within stipulated period of 30 days, or refuses to issue NOC, the applicant may file an appeal with the BDO of respective Panchayat Samiti in 60 working days. The BDO concerned has to decide such an appeal after due scrutiny within 30 days of receiving the appeal. In case BDO also refuses NOC, the officer has to record the ‘justifiable reasons’ in writing. However, the changes have not gone down well with industries and investors willing to start activities in rural areas. According to them, more time will be consumed before obtaining NOC.
