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Tamil Nadu Bill Sets 21-Day Cap on Business Clearances

Tamil Nadu Bill Sets 21-Day Cap on Business Clearances
Tamil Nadu Bill proposes 21-day cap for business clearances · thehindubusinessline.com

Tamil Nadu has proposed a new Bill about how quickly businesses should receive government clearances.

It says many clearances should be processed within 21 days.

If a rule currently allows more than 21 days, the time could be treated as 21 days.

If a rule has no deadline, the 21-day limit would also apply.

Public and local holidays would not be counted in those 21 days.

Rules that already require 21 days or less would stay the same.

Longer deadlines required by a Central Act would continue to apply.

The Bill also proposes a commission led by the Chief Secretary to watch over very large and important investments.

Key facts

Bill
Tamil Nadu Business Facilitation (Amendment) Bill, 2026
Proposed clearance limit
21 days
Excluded days
Public and local holidays would not count toward the limit.
Central law exception
A longer timeline under a Central Act would prevail.
Commission chair
The Chief Secretary of Tamil Nadu
Investment threshold
Proposed capital investments of ₹200 crore or more
Employment threshold
Investments generating 5,000 or more jobs

Sources

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