Industrial Licensing

Industrial Licensing

In India, with the enactment of Industrial (Development and Regulation) Act, 1951 every new and existing industrial undertaking has been mandated to obtain a license from the Central Government. “Industrial undertakings,” here means an undertaking pertaining to a scheduled industry carried on in one or more factories by any person or authority.

Moreover, a registered or a licensed industrial undertaking is restricted from manufacturing a new article unless the license for new article has been obtained or prior license has been amended to include the article, as the case may be.

The industries requiring compulsory licensing are:

• • Distillation and brewing of alcoholic drinks
  • Cigars and cigarettes of tobacco and manufactured tobacco substitutes
  • Electronics
  • Aerospace and defense equipment
  • Industrial explosives -including detonating fuses, safety fuses, gun powder, nitrocellulose and matches
  • Hazardous chemicals – including items hazardous to human safety and health and thus fall for mandatory licensing

Now, the Industrial undertakings which are exempted from the requirements of Industrial Licensing and having an investment in plant and machinery of Rs 50 Crore and above; or turnover of Rs. 250 crore and above, including Existing Units, New undertaking (NU) and New Article (NA) are required to file information relating to setting up of industries in a form known as IEM (Industrial Entrepreneur Memorandum). This is an application for acknowledgement of industrial unit.

PKMCA helps you in providing all the required assistance for obtaining or updating the industrial license and IEM application (both Part A and Part B).