QUESTION

(a) the implementation status of the Centre for Processing Accelerated Corporate Exit(CPACE) in the country and its impact on the corporate landscape in the country, if so, the details
thereof, State-wise;

(b) the number of companies in the State of Haryana that availed benefit under this initiative;
and

(c) the proposed steps to increase the efficiency of the said initiative?

ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS (RAO INDERJIT SINGH)

(a) to (c). Centre for Processing Accelerated Corporate Exit (C-PACE) has been set up and operationalised w.e.f. 01.05.2023 to facilitate and expedite the applications filed for voluntary exit under the provisions of Section 248(2) of the Companies Act, 2013 (Act). The applications for voluntary closure under C-PACE are being processed in a centralised manner for a uniform and efficient outcome. Since the setting up of C-PACE, 10692 companies have been struck off under section 248(2) of the Act which includes 330 companies in the state of Haryana.

In order to ensure easy exit process for the companies and improve the ease of doing business, para 77 of the Budget Speech (2022-23) of Finance Minister had envisioned that through CPACE the time taken to process the application for closure of companies would be reduced from 2 years to less than 6 months. The time taken under C-PACE for voluntary exit has reduced to around 110 days during the current year.