Industrial Licensing

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We offer highly efficient and transparent industrial licensing service. In order to fulfill all the required formalities for acquiring an industrial license, we competently assist our customers. We possess all the requisite contacts, tie-ups, and associations to make the procedure of license acquirement, smooth and easy.

The government has reserved certain items for exclusive manufacturing in the small-scale sector. Non-small-scale units can undertake the manufacturing of items reserved for the 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 percent of the production of small-scale industry (SSI) reserved items. This has been done to protect indigenous manufacturers from competitive exotic substitutes so as to ensure a level playing field for domestic manufacturers.

With regards to locational limitations, industrial undertakings are free to select the location of their projects. Industrial licenses, however, are required if the proposed location is within 25 kilometers of the standard urban area limits of 23 Indian cities having a population of at least 1 million. The locational restrictions, however, do not apply in the case of electronics, computer software and printing and any other industry which may be classified in the future as a “non-polluting industry.” The location of industrial units is subject to the applicable local zoning and land use regulations and environmental regulations so as to maintain ecological discipline.

The application for registration has to be made to the Secretary of Industrial Assistance, Central Government. After due consideration, the government then issues the Certificate of Registration. Similarly, an application (Form IL-FC) for obtaining a license by a new undertaking has to be made to the Central Government along with the fee, after which the Ministry issues a license. Industrial licenses are granted by the Secretarial of Industrial Assistance (SIA) on the recommendation of the Licensing Committee.

After a an industrial undertaking has obtained a license or permission as above, it becomes eligible to the allotment of controlled commodities and for the issuance of an import license for goods required for the construction and operation of the industrial undertaking.

List of industries with compulsory licensing

Comprehensive list for which industrial licensing is compulsory:

  1. Coal and lignite
  2. Petroleum (other than crude) and its distillation products.
  3. Distillation and brewing of alcoholic drinks
  4. Sugar
  5. Animal fats and oils, partly or wholly hydrogenated
  6. Cigars and cigarettes of tobacco and manufactured tobacco substitutes
  7. Asbestos and asbestos-based products
  8. Plywood, decorative veneers, and other wood-based products such as particle board, medium density fiber board, and black-board
  9. Raw hides and skins, leather chamois and patent leather
  10. Tanned or dressed furskins
  11. Motor cars
  12. Paper and Newsprint except bagasse-based units (i.e. except units based on minimum 75% pulp from agricultural residues, bagasse and other non conventional raw materials)
  13. Electronic aerospace and defence equipment: all types
  14. Explosives including detonating fuses, safety fuses, gunpowder, nitrocellulose and matches
  15. Hazardous chemicals
  16. Drugs and Pharmaceuticals (according to Drug Policy)
  17. Entertainment electronics (VCR’s, color TV’s, CD players, tape recorders)
  18. White goods (domestic refrigerators, domestic dishwashing machines, programmable domestic washing machines, microwave ovens, air conditioners)