TS-iPASS failed on single-point approval

​Hyderabad: The Comptroller and Auditor General of India (CAG) has found lacunae in the unique TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System) policy brought to attract huge investment in the Telangana state in December 2014.

The CAG audit report 2016-17 said that only 9 per cent entrepreneurs applied for all the approvals while 91 per cent applied only for selected approvals. The independent authority observed the objective of single- point approval was not achieved as the software allowed only selective approvals.

The objective of the new industrial policy was to provide single-point approval on behalf of all relevant departments for setting up industrial undertakings. The approval was to be on self-certification basis by the entrepreneur. 

As per Section 9 (1) of the Act, the entrepreneur was to submit the application to the Nodal Agency for clearance with the required fees. In response, TS-iPASS online portal interface indicated approvals required from various departments and the respective fees.

The CAG conducted an audit scrutiny (between March and June 2017)   of TS-iPASS which showed that the software application did not have controls to ensure that all the approvals were applied for. It also did not provide an option to “Apply Later”. As a result, the entrepreneurs did not apply for 68 per cent of the required number of approvals.

Audit further noted that the other essential approvals required before establishment of the units were ignored. For instance, many entrepreneurs did not apply for approvals from the Pollution Control Board, Fire department and no objection certificates from local bodies.  TS-iPASS was issuing approval certificate only for those approvals which were sought by the entrepreneurs. 

Approvals, which were required but not applied for were not insisted before issue of consolidated approval certificate, the CAG said and observed: “This has rendered the objective of single point TS-iPASS approval from all the Departments, unachieved.”  There was also no mechanism to ensure whether the units, which applied for partial approvals, had thereafter established units and commenced operations. There is a risk of such units starting operations even without all necessary approvals, the CAG pointed out.