Bengaluru: The govt is set to overhaul its industrial approval system, proposing deemed clearances for applications that are not processed within a prescribed timeframe and introducing a risk-based inspection mechanism to reduce compliance burdens on investors.The cabinet Friday approved the Karnataka Industries (Facilitation) Amendment Bill, 2026, which is likely to be introduced in the ongoing monsoon session of the legislature.The proposed changes seek to create a unified digital approval system by reducing physical visits to govt offices, eliminating repetitive document submissions and improving coordination between departments.Under the once-only document submission system, KYC and other documents available with the govt can be accessed for subsequent processing instead of being sought repeatedly from investors. The move is aimed at strengthening inter-department clearances and reducing delays.The bill also proposes increasing affidavit-based clearances from 15 to 20 services. Their validity will be extended to three years for micro, small and medium enterprises and five years for large industries, or until commencement of commercial operations, whichever is earlier.To make approvals time bound, the govt plans to introduce turnaround time for various services, with inter department coordination to ensure applications are processed within the stipulated period. If an approval is not issued within the prescribed timeframe, it will be treated as a deemed approval.The proposed risk-based inspection system will categorise industries based on their level of risk, allowing regulators to focus inspections on areas requiring greater scrutiny while reducing unnecessary visits and compliance requirements for other businesses.In another decision, the cabinet approved Operation Shuddikarana of the home department, under which a state-of-the-art system will be procured at a cost of Rs 20 crore to strengthen security in state jails. The cabinet also approved amendments to the Karnataka Grama Swaraj and Panchayat Raj Act to bring unmapped sites in rural areas into the tax net by providing them B-khatas.
