Government relaxes licensing rules for manufacturers

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Updated: September 13, 2019 1:02:27 AM

The DPIIT also clarified that no industrial/arms licence is required for the manufacturer of any parts or accessories in the defence sector, unless they are specifically listed for procuring licences.

licensing rules, manufacturers, industry ministry, Internal Trade, industrial entrepreneur memorandums , economy newsWith regard to new projects for manufacturing of items that are not covered by the compulsory licensing of their substantial expansion, the only requirement will be to file a memorandum.

As part of its effort to remove the licence raj and ensure ease of doing business, the commerce and industry ministry on Thursday said no compulsory licence would be required for manufacturers of goods, barring four segments of tobacco items, defence equipment, hazardous chemicals and industrial explosives. The DPIIT also clarified that no industrial/arms licence is required for the manufacturer of any parts or accessories in the defence sector, unless they are specifically listed for procuring licences.

“As the DPIIT (Department for Promotion of Industry and Internal Trade) is not issuing licence in any other case, Press Note 17 (1984 series) has become irrelevant. Accordingly, this Press Note is withdrawn,” the commerce and industry ministry said. Earlier this year, the ministry had proposed to simplify filing procedure for industrial entrepreneur memorandums (IEMs) and said the requirement of filing IEMs at two stages stood dispensed with for all the businesses that didn’t then require an industrial licence. The two stages of IEMs were intent and implementation.

Also, with regard to new projects for manufacturing of items that are not covered by the compulsory licensing of their substantial expansion, the only requirement will be to file a memorandum.

As per the DPIIT’s annual report, all units that are exempted from obtaining an industrial licence and those who invest more than Rs 10 crore in plant and machinery (Rs 5 crore for the services sector) are required to file an IEM with the government.

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