According to Press Release, the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman informed Rajya Sabha today (26-11-2014) that in order to streamline the procedures for the grant of industrial license, as a measure of ease of doing business, the initial validity period of industrial license has been revised from two years to three years, extendable up to seven years by allowing two extensions of two years each.  Earlier, initial validity of Industrial License was for a period of two years with a provision of granting two extensions of two years and one year respectively. The applicant may be granted extension of Industrial License by the concerned Administrative Ministry without referring the application to Licensing Committee.

The relevant Press Note of Department of Industrial Policy and Promotion is as under:

 

File No 9(8)/2014-IL(IP)
Government of India
Ministry of Commerce and Industry
Department of Industrial Policy and Promotion
Press Note No. 9(2014 Series)

STREAMLINING THE PROCEDURE FOR GRANT OF INDUSTRIAL LICENSES

 

1. Increasing the validity period of Industrial License

As a measure of ease of doing business, henceforth two extensions of two years each in the initial validity of three years of the Industrial License shall be allowed up to seven years. This is in supersession of Press Note No.5{2014 Series) dated 02.07.2014

2. Removal of stipulation of annual capacity in the Industrial License.

It has been decided to deregulate the annual capacity for defense items for Industrial License. However, the licensee shall submit half yearly production return to Department of Industrial Policy & Promotion and Department of Defence Production, Ministry of Defence in the prescribed format, to be notified separately.

3. Sale of Defence items to Government entities without approvaf of Ministry of Defence

The Licensee shall be allowed to sell Defence items to Government entities under the control of Ministry of Home Affairs (MHA), State Governments, Public Sector Undertakings (PSUs) and other valid Defence Licensed Companies without prior approval of the Department of Defence Production (DoDP). However, for sale of the items to any other entity, the Licensee shall take prior permission from the Department of Defence Production, Ministry of Defence.

 

(Shubhra Singh)

Joint Secretary to the Government of India

DIPP File No. 9(8)/2014-IL(IP) Dated 20th October,2014