Validity period of industrial license increases to 3 yrs
Updated: Jul 02, 2014 04:44:05pm
New Delhi, Jul 2 (KNN) The period of validity of industrial license is being extended from two years to three years as a measure towards ease of doing business.
The government has come out with revised guidelines for the extension of validity of industrial license.
“The application for extension of license should be submitted to the concerned Administrative Ministry, 60 days prior to the expiry of the three years period or otherwise specified for commencement of commercial production,” said an official release.
In case the application is not received in time, justification for late application shall have to be submitted along with the application, it added.
At the time of applying for grant of extension of validity of license the condition and status of the firm should be same as mentioned in the industrial license issued to the firm.
Thus any amendment, like change in the name of the company, increases/changes in license capacity, alteration or change in the premises, part shifting etc should have been endorsed in the License, according to the new guideline.
Applicant’s request should be forwarded to Ministry of Home Affairs, in Defence and Explosive sector and concerned State Government and after seeking comments of these agencies, case should be considered for Extension of validity, according to the release.
MHA may be consulted only if there is change in Board of Directors/key personnel, it added.
The other conditions that the applicant should meet at the time of applying of extension are - land should have been acquired, either under ownership or on lease for minimum period of 30 years; the construction on the projects should have commenced (a certificate from appropriate local body like Municipal Corporation) may be provided in this regard; and orders for plant and machinery for the project should have been placed.
The new guideline further says that, “Cases involving transfer, suspension or cancellation of license in the intervening period shall not be considered for extension.”
Renewal of license would be allowed for a period of two years. Any Industrial License, wherein commercial production has not started within a period of five years of issue of license, will be treated as automatically lapsed.
The applicants fulfilling the above guidelines may be granted extension of industrial license with the approval of concerned Joint Secretary of the Administrative Ministry without referring the application to Licensing Committee. (KNN/SD)
The government has come out with revised guidelines for the extension of validity of industrial license.
“The application for extension of license should be submitted to the concerned Administrative Ministry, 60 days prior to the expiry of the three years period or otherwise specified for commencement of commercial production,” said an official release.
In case the application is not received in time, justification for late application shall have to be submitted along with the application, it added.
At the time of applying for grant of extension of validity of license the condition and status of the firm should be same as mentioned in the industrial license issued to the firm.
Thus any amendment, like change in the name of the company, increases/changes in license capacity, alteration or change in the premises, part shifting etc should have been endorsed in the License, according to the new guideline.
Applicant’s request should be forwarded to Ministry of Home Affairs, in Defence and Explosive sector and concerned State Government and after seeking comments of these agencies, case should be considered for Extension of validity, according to the release.
MHA may be consulted only if there is change in Board of Directors/key personnel, it added.
The other conditions that the applicant should meet at the time of applying of extension are - land should have been acquired, either under ownership or on lease for minimum period of 30 years; the construction on the projects should have commenced (a certificate from appropriate local body like Municipal Corporation) may be provided in this regard; and orders for plant and machinery for the project should have been placed.
The new guideline further says that, “Cases involving transfer, suspension or cancellation of license in the intervening period shall not be considered for extension.”
Renewal of license would be allowed for a period of two years. Any Industrial License, wherein commercial production has not started within a period of five years of issue of license, will be treated as automatically lapsed.
The applicants fulfilling the above guidelines may be granted extension of industrial license with the approval of concerned Joint Secretary of the Administrative Ministry without referring the application to Licensing Committee. (KNN/SD)
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