Government of Telangana to carry out computerized Risk Assessment based Inspections to facilitate Ease of Doing Business.

The State Government of Telangana in its gazette notification dated 14th July 2020 has revised the comprehensive orders in the matter of Computerized Risk Assessment based Inspections with random allocation of Inspecting Officers to facilitate Ease of Doing Business in the State in accordance with Business Reforms Action Plan.

There shall be a single joint inspection, without any duplication, under all the Labour Laws and the units will be categorized as Low Risk / Medium Risk / High Risk depending upon the number of workers employed.

The frequency of inspections for Establishments under Low Risk is once in 5 years, for Establishments under Medium Risk is once in 3 years and for Establishments under High Risk is once in 2 years.

As a part of Ease of Doing Business and in compliance of the provisions of Business Reforms Action Plan, the government has exempted the following factories and establishments from physical inspections under all labor laws:

  • Establishments under Telangana Shops and Establishments Act, 1988 employing up to 20 employees;
  • Establishments under Motor Transport Workers Act, 1961 (Central Act 27 of 1961) employing up to 20 employees;
  • Establishments under Contract Labour (Regulation and Abolition) Act, 1970 (Central Act 37 of 1970) employing up to 20 employees
  • Star Hotels, Information Technology / Information Technology Enabled Services Units, Export Processing Zone Units, Export oriented Units, Bio-Tech Units, Tourism Promotion Units (irrespective of number of workers)
  • Those establishments which are Start-ups as defined by the Department for Promotion of Industries and Internal Trade(DPIIT), will be exempted from inspection for the first year of setting up upon submission of an online Self-declaration and if they continuously submit their Integrated Return/Returns specified under different Acts without fail they will be exempted from compliance inspections for a further period of four years from the second year onwards, unless any specific complaint is received against such establishment

The entire online system will function as part of the Centralized Inspection Agency encompassing Labour, Factories Boilers, and Telangana State Pollution Control Board Departments compliance inspection system. The Schedule of Inspections will be determined through an online inspection module. The establishments will be selected randomly as per the frequency of inspections indicated above. A computer-generated notice will be issued to the establishments so as to provide 15 days clear time before the inspection. The establishments will be able to view and download inspection reports of the past two years.

Click here to download the notification.

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