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No licence would be required for manufacture of goods except for few items like tobacco, hazardous chemicals; move to benefit MSMEs

Updated: Sep 13, 2019 10:37:58am
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No licence would be required for manufacture of goods except for few items like tobacco, hazardous chemicals; move to benefit MSMEs

New Delhi, Sept 13 (KNN) Taking a step towards improving ease of doing business, the government relaxed license rules for some sections of manufacturing. The government has clarified that no licence would be required for the manufacture of goods except tobacco items, defence equipment, hazardous chemicals and industrial explosives.

The move is likely to help the micro, small and medium enterprises (MSMEs) in a big way by saving them from going through the process of obtaining licenses for manufacturing small items.

“As 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 Accordingly, this Press Note is withdrawn,” the commerce and industry ministry said.

The Press Note covered matters such as environmental clearance, conditions of letter of intent and industrial licence related to pre-1991, it said.

In another press note, it clarified that no industrial or arms licence was required for the manufacturer of any parts or accessories in defence sector, unless they were specifically listed for procuring licences. “These are clarificatory press notes which clearly define which all are defence products and which are not, and to which all sectors the DPIIT grants licences,” said an expert on licence issues.

Defence aircraft, warships, body armour and specialised equipment for military training are a few products for which the department is the licensing authority.

DPIIT had, in January, issued a notification, in consultation with the ministry of home Aaffairs and Department of Defence Production, clarifying that defence products requiring a compulsory licence under the Industries (Development & Regulation) Act, 1951 (IDRA), and Arms Act, 1959.

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