Industrial licenses issued under IDR Act to be valid for 15 years

economictimes.indiatimes.com:

industrial licenses issued under the Industries (Development and Regulation) Act will now be valid for 15 years as against three years. In a press note, the department for promotion of industry and internal trade (DPIIT) said that the move is aimed to promote ease of doing business.

“In supersession of all earlier Press Notes, the period of validity of industrial license is being extended from three years to fifteen years for all kind of licenses henceforth to be granted under IDR Act in line with the validity of licenses being issued for defence items as a measure for ease of doing business,” the DPIIT said. The ministry concerned can grant extension of three years.

As per the guidelines, this is applicable for extension of validity of the license in cases where the existing license holder has not commenced production of the items within 15 years of issue of license. The applicants need to meet certain conditions at the time of applying for extension such as acquisition of land either under ownership or on lease for a minimum period of 30 years, construction on the project should have been completed, and plant and machinery for the project should have been installed/commissioned.

“Any industrial license, wherein commercial production has not started even within the extended period (15+3 i.e. a maximum period of 18 years from the date of issue of license), shall be treated as automatically lapsed,” the department said in the note.