Auto-Renewal of Certificate of Enlistment through Online System for all Urban Areas of the State – Department of MSME & Textiles, Government of West Bengal

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Case Study

Auto-Renewal of Trade License for enterprises set up in all Urban Areas in West Bengal. The application for auto renewal of the trade license in urban areas are now became online where enterprises can apply by depositing payment of fees online. The renewed Trade License can be downloaded by the enterprise from the portal. The implementation has enabled Auto-Renewal of Trade License in all Urban Areas without any physical touch point between the enterprise and Urban Local Body has helped the enterprises to continue to run their businesses uninterrupted. The online system has the features of online submission of application and online payment. The approval is fully automatic and non-discretionary. Payment of fees is required to be made online and the final certificate can be downloaded by the enterprise from the portal.  In this system there is no need for the applicant to visit Urban Local Body.

Problem

During this online system the training for the officials of the Urban Local Bodies across the State is done using the online system. The MSME enterprises in the urban areas of the state suffered as there was no system of auto-renewal of Trade Licenses. There was no system of raising alerts and the entire process was quite lengthy and cumbersome as each time for renewal a physical form alongwith a number of documents required to be submitted. Since physical verification was part of the process, it added to the discretionary powers of inspectors leading to malpractices. Since the system was working in favour of the concerned officials, there was resistance from them to switch over to the online system. Change management and conducting hands-on training of all the officials of the Urban Local Bodies across the state was the biggest challenge.

Solution

Once the process of hands-on training was complete, it had the complete buy-in from the officials in ULBs who were ready to adopt the new system. The solution was developed in-house. The enterprises set up in urban areas in West Bengal can now apply online for auto-renewal of Trade License. The application is received online in a non-discretionary mode and the enterprise can download the renewed certificate from the portal without the visit of office. Once the approval is done, the enterprise is notified by an SMS and registered e-Mail. The need for additional documents is done away with and no physical inspection is no longer done.

In order to facilitate uninterrupted business operations, an SMS alert is sent to the enterprise one month before the expiry of license. The enterprise is required to pay only the renewal fees online. Then the approved and renewed license, which is a non-discretionary, can be downloaded from the portal without visiting the office.

There is a time bound online issue of renewed trade license for enterprises set up in urban areas without any requirement of physical touch point between enterprise and the urban local bodies.

Outcomes

• The enterprises set up in urban areas in West Bengal can now apply online for auto-renewal of Trade License.
• The implementation has enabled Auto-Renewal of Trade License in all Urban Areas without any physical touch point between the enterprise and Urban Local Body and implemented across the state.
• Only payment of fees is required to be made online and the final certificate can be downloaded by the enterprise from the portal.
• The online system has the features of online submission of application and online payment. 
• The renewed Trade License can be downloaded by the enterprise from the portal.  
• Time-bound renewal with SLAs
• Increased periodicity – 5, 10, 15 years
• Ban printing of offline forms
• Cost rationalised by 25%

For more information, please contact:
Mr Swaroop Udayakumar, Joint Secretary at eodbteam.wb@gmail.com

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