Registration of Large & Medium industries
The permissions / licenses to Large Scale Industries are granted under
the provisions of the Industral Development (Regulation) Act,1951 of
Govt. of India. For setting up an industrial undertaking for the
products, which are under licensing purview licenses, is required, for
the following purpose, from the Secretariat for Industrial Assistance,
Ministry of Industry and Commerce, Department of Industrial Policy &
Promotion, Govt. of India, New Delhi. The applicant has to submit
application in nine copies.
1. To set up new industrial undertaking.
2. To effect substantial expansion of the existing industrial
undertaking.
3. To manufacture a new article.
4. To Carry On Business of existing SSI unit after graduating
into Large Scale Industry.
5. To set up a Large Scale Industry for manufacturing item(s)
exclusively reserved for SSI sector (Annexure - III of the
notification).
6. To set up a Large Scale Industry within the periphery of 25
Km from Standard Urban Area limit of a city having
population more than one million as per 1991 census, in the
area outside the industrial area designated prior to 25 th July
1991, although the item is de-licensed.
7. To set up a SSI unit for the item/s listed in Schedule-I of the
IDR Act, 1951 where number of employees exceeds 49 with
the use of power (and 100 without power).
8. To set up an Industrial Undertaking for manufacture of
items listed in Schedule-II of the IDR Act, 1951
Govt. of India liberalized the Industrial Policy vide notification dated
25th July 1991. A large number of industries hitherto under the licensing
provision were de-licensed from time to time. According to the existing
policy, four industries are reserved for public sector undertakings as
listed in schedule-I and only six industries are reserved for private
sector for which Industrial License is compulsory. The industries
requiring Industrial License is given in Schedule-II. The list of items
reserved for SSI sector is given in Schedule-III
The promoters willing to set up a large scale industry, which is out side
the purview of the licensing provisions and for the item(s) not
exclusively reserved for manufacture by SSI sector, have to file an
application for Industrial Entrepreneur’s Memorandum (IEM) in the
Prescribed Form (in six copies) to the Secretariat for Industrial
Assistance (SIA), Ministry of Commerce and Industry, Department of
Industrial Policy & Promotion, Govt. of India, New Delhi for obtaining
the acknowledgement, which is deemed to be a permission / registration
for setting up the project.
However, the projects which are proposed to be located within 25 Km
from the periphery of the Standard Urban Area (SUA) limits of the
cities having population of more than one million according to 1991
Census but in the area(s) outside the industrial areas designated by the
concerned State government prior to 25th July, 1991, will have to obtain
industrial license even for de-licensed item. The unit has to file an IEM,
in case the proposed location of the unit is in the industrial area
designated prior to 25th July, 1991. In such cases, the SIA, Govt. of India
obtains recommendation of the concerned Directorate of Industries on
Locational Clearance under the Industrial Locational Policy of Govt. of
India (for large scale industries) for granting license or for accepting the
IEM filed by the unit. The units having obtained IEM are required to
notify their commencement of commercial production alongwith the
relevant details in the prescribed application Part - B.
The above procedure applies mutatis mutandis for obtaining a
permission for 100 % Export Oriented Unit (100% EOU). However,
there is a separate application form for seeking this clearance.
Procedure – Govt of India
The Directorate of Industries monitors the progress of implementation
of the projects filed for the State with a view to resolving the problems
/difficulties of the promoters in implementing their projects and to
obtain the relevant data for strategic planning of infrastructure inputs.
A mechanism consisting of fora viz. the State Level Udyog Mitra headed
by the Development Commissioner (Industries), the Task Force
Committee under the Chairmanship of the Secretary (Industries) and
the Strategic Management Group for monitoring major projects
particularly the Foreign Direct Investment Projects, is already in place
to resolve the problems / difficulties of promoters during
implementation and the post implementation problems as well.
Grant of licenses / Permissions and Recommendations to
Govt. of India for grant of LOIs / IEMs / EOU permission
Permission to Purchase Agricultural Land exceeding 10 Ha for
Bonafide Industrial Purpose.
Government of Maharashtra laid special emphasis on simplification of
rules and procedures in its New Industrial Policy 1993. The rules and
procedures for seeking permission for Non Agricultural use of land for
industrial purpose and for purchasing agricultural land exceeding 10
Ha for bonafied industrial purpose were greatly simplified with a view
to remove the first major bottleneck in speedier implementation of
industrial projects
Government of Maharashtra promulgated the ordinances in 1994 for
amending
a. Maharashtra Land Revenue Code, 1960 and
b. Bombay Tenancy and Agricultural Land Act, 1948.
Accordingly, an industrialist does not require permission of the District
Collector for purchasing land admeasuring less than 10 hectares for
bonafied industrial purpose. However, it is necessary to inform the
concerned Revenue Authorities within 30 days regarding
commencement of use of the land for industrial purpose and the
Collector levies appropriate N.A. assessment charges for the land for
the change in end use of the land.
The powers to grant permission for purchasing agricultural land,
exceeding 10 Ha for bonafied industrial purpose, are conferred to
Development Commissioner (Industries). The promoters of an
industrial undertaking have to apply for the permission in the
prescribed Application form alongwith the stipulated accompaniments.
‘Bonafide Industrial Use’ implies the activity of manufacture,
preservation or processing of goods, or any handicraft, industrial
business or enterprises carried on by any person, including construction
of industrial building used for the manufacturing process or purpose, or
power projects and ancillary industrial usage like research and
development. Godown canteen, office building of the industry
concerned, or providing housing accommodation to the workers of the
industry concern, or establishment of an industrial estate including Cooperative Industrial Estate or service industry, cottage industry,
gramodyog units or gramodyog vasahat.
It is necessary that the land should be in the industrial zone as per the
draft / final Regional Plan of the area and should not be under any
other reservation where no such Regional Plan or a Scheme exists. The
Committee under chairmanship of Development Commissioner
(Industries) scrutinizes the application for reasonableness requirement
of land considering the project parameters and accordingly
Development Commissioner (Industries) grants permission to purchase
the land subject to the following conditions:
1. The land to be purchased shall be put to industrial use within a
period of five years from the date of purchase failing which the
person from whom the land is purchased shall have right to
repurchase the land at the price for which it was originally sold.
2. Where the land being sold is owned by a person belonging to the
Scheduled Tribe, such sale of land shall be subject to the
provisions of section 36 and 36 A of Maharashtra Land Revenue
Code 1966 and of the Maharashtra Restoration of Lands to
Scheduled Tribe Act 1974.
3. If the land being purchased is held by occupant Class-II, the
purchaser shall pay to the Collector, an amount equal to two
percent of the purchase price within one month of the execution of
the sale deed irrespective of the tenure of such land. This payment
shall be in lieu of any nazarana or such other charges which may
otherwise be payable, by such occupant Class-II by or under the
provisions of the Maharashtra Land Revenue Code 1966. In
addition, the purchaser of such land shall pay the non agricultural
assessment as may be levied by the Collector under Section 67 and
115 of the Maharashtra Land Revenue Code 1966.
4. The person purchasing the land under Sub Section 63 (I) and for
conversion there of for bonafide industrial use shall give
intimation of the date on which the change of user of the land
commenced, within thirty days from such date to the Collector of
the District.
5. If the person fails to inform the Collector within the period
specified in Sub Section 63 I A III, he shall be liable to pay in
addition to the non agricultural assessment which may be leviable
by or under the provisions of the Maharashtra Land Revenue
Code1966. Such penalty not exceeding twenty times the amount of
non agricultural assessment as the Collector may fix subject to the
rules, if any made by the State Govt. in this behalf.
6. The applicant will have to comply with the provisions of all other
Acts/Rules/Notifications issued from time to time by State
Govt./Central Govt. in this behalf.
The permission is granted within one month from the date of receipt of
the application alongwith the required accompaniments, complete in all
respects.