EDP (Lecture 16)

                                   MARWARI COLLEGE,RANCHI                                                           (UNDER RANCHI UNIVERSITY RANCHI) 

NAME : RAJU MANJHI,PRAKASH KUMAR

SUB: EDP

SEM : IT /CA/BCM VI

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INDUSTRIAL LICENSING AND REGISTRATION

The industries developed and registered at 1951, provides a basic framework for directing the flow of investments into various industries for achieving the plant target. Industrial licensing is used as an effective instrument for this purpose. Various administrative bodies have been setup to consider request for the issue of industrial license, import of capital equipment, foreign collaboration etc. These bodies are expected to decide the request within the stipulated time limit. As a matter of general practice, a letter of intend is issued, stipulating condition to which license will be issued. The license is issued on furnishing evidence, that the prescribed condition have been fulfilled.

         Why Licensing ?

Industries requiring licensing a license from the govt. of India is necessary for the manufacturers of any article included in the schedule to the industrial development and registration act 1951. To mentioning, a few industries are- metallurgical industries, fuels, boilers and steam generating plants, electrical equipments, telecom, transportation, industrial machinery, fertilizers, chemicals etc.

A license is also necessary for taking up the manufacture of any new article in the existing undertaking substantial expanding the capacity, Business for which exemptions have been cancelled and changing the location of an existing industrial undertaking.

Changes with effect from July 1991

The process of liberalization got the announcement of the new industries policy in July 1991. The major provision relating to industrial licensing in the new policy is as follows

1.   Industrial licensing will be abolished for all projects except for a short list of 18 industries related to security and strategic concerns, social regions, hazardous chemicals and overriding environmental reasons and items of elicits consumption.

2.   In projects where imported capital goods are required automatic clearance will be given in case where foreign exchange availability is ensured through foreign equity.

REGISTRATION

Undertaking which are exempted from licensing and do not belong to small scale and auxiliary units are expected to register themselves with Directorate general of Technical development in the ministry of Industry. Small scale and auxiliary units are required to be registered with the directorate of industries in the state in which units are located.