Chandigarh, September 1 – Taking forward its efforts to simplify business processes and create a more enabling environment for entrepreneurs, the Haryana Government has taken another significant reform-oriented step with the Haryana Vidhan Sabha today passing the Haryana Right to Business Bill, 2026. The legislation provides for the grant of a Certificate of In-Principle Approval (CIPA) to eligible new and expanding manufacturing Micro, Small and Medium Enterprises (MSMEs) within 15 working days, with a provision for deemed approval where no decision is taken within the stipulated period.
In line with the State Government’s broader vision of ‘Minimum Government, Maximum Governance’, the legislation seeks to reduce procedural delays and make it easier and faster for entrepreneurs to establish new manufacturing units and expand existing ones without having to wait for regular approvals at the initial stage.
As per the provisions of the legislation, new manufacturing MSMEs as well as existing manufacturing MSMEs undergoing expansion will be eligible to apply for and obtain a CIPA, facilitating the setting up or expansion of their enterprises while the process for obtaining regular approvals is completed.
The District Nodal Agency, under the chairmanship of the concerned Deputy Commissioner, will provide the CIPA within 15 working days. In cases where no decision is taken within the stipulated period, the legislation provides for deemed approval, thereby ensuring a time-bound mechanism for eligible enterprises.
The CIPA will remain valid for 36 months. During this period, eligible enterprises will be required to obtain all requisite regular approvals. The legislation does not dispense with the requirement of obtaining regular approvals; rather, it provides eligible enterprises a 36-month window to obtain all such approvals while facilitating the setting up of their enterprises.
During the validity of the CIPA, routine inspections and coercive measures will remain restricted. At present, the legislation provides protection from inspections by six departments during this period. The State Government may consider bringing more departments within its ambit in the near future.
The 36-month validity of the CIPA will also serve as a moratorium period. However, necessary safeguards have been incorporated into the legislation. Inspections may be undertaken on the basis of a complaint. Inspections may also be conducted in cases involving land-use violations, unauthorised construction, public safety, structural integrity or fire-safety concerns, subject to a recommendation by the Head of the concerned Department.
The legislation further provides for a time-bound grievance redressal mechanism for all eligible enterprises aggrieved by any coercive action initiated during the moratorium period.
The Haryana Right to Business Bill, 2026, therefore, seeks to promote trust-based governance through a balanced and pragmatic legal framework aimed at facilitating the establishment and expansion of manufacturing MSMEs and further enhancing the Ease of Doing Business in the State.
One thing I have consciously preserved from your source: CIPA is a facilitation mechanism, not a waiver of regular approvals. Also retained are the six-department inspection protection, the possibility of adding more departments, all inspection exceptions, grievance redressal and the 36-month moratorium.
