Industrial Licensing Policy
Following industries require compulsory industrial licence under the provisions of IDR Act, 1951.
Large Enterprises undertaking manufacture of items reserved for SSI units
The Government has reserved certain items for exclusive manufacture in the small scale sector. Non-small scale units can undertake the manufacture of items reserved for small scale sector, only after obtaining an industrial license. In such cases, the non-small scale unit is required to undertake an obligation to export 50% of the production of SSI reserved items.
Industrial undertakings are free to select the location of their projects. Industrial licence is however required if the proposed location is within 25 km of standard urban area limits of 23 cities having a population of one million as per 1991 Census.
The Locational restriction however does not apply:
The location of industrial units is subject to applicable local zoning and land use regulations and environmental regulations.
Procedure for obtaining Industrial License
Industrial license is granted by the Secretarial of Industrial Assistance (SIA) on the recommendation of the Licensing Committee. For this purpose, Online application in the prescribed form (Form FC-IL) (with Applicable fees) may be submitted to SIA at ebiz portal (www.ebiz.gov.in) specially developed by GOI and also available on www.dipp.gov.in.
Procedure for filing IEM
Upon commencement of commercial production, industrial undertakings need to file online information in Part-B of the IEM to SIA.
No fee is to be paid for filing Part-B.
Establishing an Industrial Project
Steps to be followed by an entrepreneur
Get a detailed project report prepared which interalia should include following components