Changes in industrial license rules, ease of doing business will now be recognized for this year

A major change has been made in the Industries Development and Regulation Act by the government. The government today announced that all industrial licenses issued under the IDR Act will now be valid for 15 years instead of three years. Provisions for licensing of industries have been made under the Industries Development and Regulation Act.

Increase validity of industrial licenses to increase ease of doing business

The Department for Promotion of Industry and Internal Trade said in a statement that the validity of industrial licenses is being extended from three years to 15 years, canceling all press notes issued earlier. The move is on the lines of licenses issued for the defense sector to increase ease of trade.

The Ministry announced the prescribed guidelines

Strengthening the process of issuing industrial licences, the department said, the concerned ministry can extend the duration of the license for three years as per the prescribed guidelines. This provision will be applicable only if the licensee has not started production within a period of 15 years.

Application must be made before the license expires

As per DPIIT guidelines, before the expiry of 15 years, an application has to be made to the administrative ministry of the concerned area for extension of license.

Some conditions must be met

However, some conditions must be followed while making this application. This includes conditions such as ownership or lease of the plot of land held by the applicant for at least 30 years, construction work of the project has been completed and installation of plant and machinery has been completed.