GOVERNMENT DECIDES TO GRANT INDUSTRIAL
LICENCE DIRECTLY AGAINST APPLICATIONS
PRESS
NOTE
As the entrepreneurs
are aware, after consideration of an application for Industrial
Licence for setting up industrial undertaking or expansion of
the existing industrial undertaking or for the manufacture of
new article, a Letter of Intent (LOI) is issued in the first instance.
The conditions contained in the Letter of Intent are required
to be fulfilled within a period of 3 years or within extended
period of validity as may be specifically allowed by the Government.
These conditions usually relate to setting up of pollution control
equipment, site clearance from the State Government and certain
special conditions for specific sectors. On fulfillment of the
prescribed conditions, the holder of ‘Letter of Intent’ is required
to approach Secretariat for Industrial Assistance and the Administrative
Ministry concerned for getting the Letter of Intent converted
into Industrial Licence.
As a measure of further
simplification of procedures, the Government has decided that
Industrial Licence will now be granted directly against applications
to ensure speedy implementation of projects. This procedure will,
however, not apply to the applications relating to manufacture
of items reserved for exclusive production in the small sector.
Such applications will continue to be processed as per existing
procedure i.e. issue of LOI in the first instance and conversion
of LOI into Industrial Licence after execution of legal undertaking
(LUT) with DGFT for fulfillment of condition relating to export
obligation. It is, however, clarified that it will be the responsibility
of the entrepreneur to ensure that all requisite approvals/clearances
under other statutes/ regulations / notifications etc. issued
by the Central or the State Government (s) from time to time are
obtained for the manufacturing activity specified in the Industrial
Licence.
It is expected that
the above mentioned decision will facilitate the entrepreneurs
and ensure speedy implementation of projects in the licensed sector.
