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Labour Laws Central Ministry of Commerce and Industry Industries (Development and Regulation) Act, 1951

The Ministry of Commerce and Industry has issued a Press Note Streamlining the Procedure for Grant of Industrial Licenses

21-Jul-2023 | Press Note No.1 (2023 Series)

The Ministry of Commerce and Industry has issued procedure for grant of industrial licenses. By virtue of the Press Note the Procedure for Grant of Industrial Licenses has been categorised into, namely: 1.Increasing the initial validity period of Industrial License to be issued: the period of validity of Industrial License is being extended from three years to fifteen years for all kind of Licenses henceforth to be granted under IDR Act in line with the validity of Licenses being issued for Defence items as a measure for ease of doing business. 2.Extension In validity of new/existing Industrial Licenses: -These guidelines are applicable for extension of validity of Industrial license in cases where the existing license holder has not commenced production of the items within 15 years of issue of license, namely: i. The application for extension of license should be submitted to the concerned Administrative Ministry/Explosive Section (DPI IT), prior to the expiry of 15 years period or otherwise specified for commencement of commercial production whereas at the time of applying for grant of extension of validity of license the condition and status of the firm should be same as mentioned in the Industrial License issued to the firm. ii. Applicant's request should be forwarded to the concerned Central/State Government, as the case may be, and after obtaining comments of the Central/State Government, the case should be considered for extension of validity, whereas following conditions at the time of applying of extension/reconsideration should be followed by Applicant where land should have been acquired, either under ownership or on lease for minimum period of 30 years (as per registration/lease documents) and The construction on the project should have been completed (as per report of State Government). Please refer to the attached document for more details.

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