Shop Licences To Building Permits: Delhi Lt Governor Sets Deadline To Ease Business Rules

Shop registrations that don't need repeated renewals, electricity connections without inspections, and fewer clearances for building permits: these are among the changes Delhi is pursuing to make running a business easier.

Lieutenant Governor Taranjit Singh Sandhu reviewed the deregulation drive on Thursday and set a November-end deadline for departments to complete the remaining work.

The fresh target comes after earlier deadlines of June 30 and August 31 were missed. Sandhu flagged repeated delays and asked officials to resolve bottlenecks during review meetings instead of allowing decisions to remain pending, according to officials present.

Of the 23 priority areas identified under Phase-I of the exercise, 22 have been completed, up from 17 at the previous review on August 21, officials said.

The only pending reform under this phase concerns rationalising the minimum road width required for industries in rural areas.

What's Changing For Delhi Businesses?

Under the second phase, officials reported progress on removing duplicate trade licences issued by the Municipal Corporation of Delhi (MCD), introducing perpetual registration for shops and commercial establishments, and allowing electricity connections of up to 200 kW without inspection.

The measures are aimed at reducing repeated applications and visits to government offices.

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Phase-II, launched in January 2026, covers 23 priority areas and five optional areas. Officials said that most have been completed, with others nearing implementation.

Building Permits: Fewer Clearances Planned

Building approvals are also under review.

The Delhi Development Authority (DDA) is working with the MCD on changes to the Unified Building Bye-Laws, 2016, that would separate four no-objection certificates involving water, factory, forest, and pollution authorities from the building-plan approval process.

The proposal is at an advanced stage but has not been finalised. It would change when the clearances are sought, rather than necessarily eliminate the underlying requirements.

The Delhi Ease of Doing Business Bill, 2026, meanwhile, has cleared the Cabinet and been forwarded to the Union Home Ministry.

The proposed legislation includes a single-window system for business approvals, provisions for faster clearances, and simplified procedures for low-risk activities.

What Else Is Changing?

The government has issued notifications revising legal metrology licensing and infrastructure requirements for private schools.

The Delhi Private University Bill, covering reforms in minimum land, endowment and infrastructure requirements, has also received Cabinet approval for placement before the Assembly.

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Officials said the notification declaring Delhi's remaining 48 rural villages urban had been issued.

The earlier notification covers the villages' entire revenue estates, bringing all 357 villages in Delhi under the urban category.

Another pending proposal seeks to shift land-use rules towards a system in which activities are permitted unless specifically prohibited. It is linked to the PM-UDAY scheme.

Sandhu asked departments, particularly Industries, to expedite the remaining reforms and complete the outstanding work by the end of November.