As noted above, Industrial Policy since 1991 has been more for facilitating the industrial development rather than anchoring it through permits and controls. Industrial licensing has, therefore, been abolished for most of the industries and there are only 4 industries at present related to security, strategic and environmental concerns, where an industrial license is currently required:
- Electronic aerospace and defence equipment: all types.
- Industrial explosives including detonating fuses, safety fuses, gunpowder, nitrocellulose and matches.
- Specified Hazardous chemicals i.e. (i) Hydrocyanic acid and its derivatives; (ii) Phosgene and its derivatives and (iii) Isocyanates & Disocyanates of hydrocarbon, not elsewhere specified (example Methyl Isocyanate).
- Cigars and cigarettes of tobacco and manufactured tobacco substitutes.
A number of initiatives have been taken for Ease of doing business for Industrial Licensing, which include online application submission for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) on 24X7 basis at eBiz website, increasing initial validity period of Industrial License has been increased to three years from earlier two years with extension of validity upto seven years, simplification of application Forms for Industrial License & Industrial Entrepreneur Memorandum etc.
Policy for Micro, Small & Medium Enterprises Sector
Government has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 stepping up the investment limit in Plant & Machinery to Rs.5 crores for small enterprises and Rs.10 crores for medium enterprises, so as to reduce the regulatory interface with the majority of the industrial units. Over the period Government has pruned the list of items reserved for exclusive manufacture by MSE sector vide Notification No. 998(E) dated 10-04-2015, remaining 20 items which were earlier reserved for exclusive manufacture by MSE Sector has been de-reserved. Presently no item is reserved for exclusive manufacture by MSE Sector.
Sectors reserved for Public Sector
Consistent with the policy of liberalization of domestic industry, the numbers of industries reserved for public sector have also been reduced. During 2014, private investment in Rail Infrastructure has been permitted. Consequently, at present only two industrial sectors are reserved for public sector:
- Atomic Energy
- Railway Operations other than construction, operation and maintenance of the following:
- Suburban corridor projects through PPP,
- High speed train project,
- dedicated freight lines,
- Rolling stock including train sets, and locomotives/ coaches manufacturing and maintenance facilities
- Railway Electrification,
- signaling systems
- freight terminals,
- Passenger terminals,
- infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line and
- Mass Rapid Transport systems.
Accordingly, now private investment (domestic as well as foreign) in construction, operation and maintenance of above has been allowed.
- PRESS Note No. 10(2015) dated 22.09.2015 Streamlining the procedure for grant of Industrial Licenses
- PRESS Note No. 5(2015) dated 27.04.2015 Streamlining the procedure for grant of Industrial Licenses
- PRESS Note No. 1(2015) dated 05.01.2015 Mapping of the sector specific FDI Policy in Consolidated FDI Policy 2014
- PRESS Note No. 9(2014) dated 20.10.2014 Streamlining the procedure for grant of Industrial Licenses
- PRESS Note No. 6(2014) dated 08.07.2014 Security manual for Licensed Defence Industries
- PRESS Note No. 5(2014) dated 02.07.2014 Streamlining the procedure for grant of Industrial Licenses
- PRESS Note No. 4(2014) dated 27.06.2014 Switching over from NIC-2008
- PRESS Note No. 3(2014) dated 26.06.2014 List of Defence items requiring Industrial License
- Business Licence.
- PRESS Note No. 1 (2003 Series)dated 21st March, 2003 :Revision of Form for Carry-on-
- PRESS NOTE NO. 4 (2003 SERIES) Dated the 10th October, 2003: Government has decided that Industrial Licence will now be granted directly against applications to ensure speedy implementation of projects.
- PRESS NOTE NO. 1 (2001 SERIES)dated 2nd January 2001: Guidelines pertaining to approval of foreign/ technical collaborations under the automatic route with previous venture / tie-up in India
- PRESS NOTE NO. 3(2001 SERIES)dated 25.04.2001:- Deletion of the condition of "Export obligation".
- PRESS NOTE NO.1 (2000 SERIES) 14th January 2000: Export of Cotton Yarn by EOU/EPZ units for the year 2000.
WITHDRAWAL OF THE CONDITION REGARDING "DIVIDEND BALANCING"
DELETION OF ADDITIONAL CONDITIONS IMPOSED IN THE INDUSTRIAL APPROVALS
EXEMPTION FROM OBTAINING COB LICENCE FOR SSIs/ANCILLARY UNITS
ENFORCEMENT AGENCY FOR HAZARDOUS INDUSTRIES
GUIDELINES FOR INDUSTRIAL LICENCE APPLICATIONS INVOLVING LOCATIONAL ANGLE
REVISION OF THE PRESCRIBED FORMS FOR GRANT OF ILs & IEMs
IMPORT OF SECOND HAND CAPITAL GOODS
ABOLITION OF THE SPECIAL COMMITTEE OF SECRETARIES ON FERTILISER PROJECTS
SETTING UP OF INTER-MINISTERIAL STANDING COMMITTEE FOR EHTPs AND ESTPs
DERESERVATION OF CERTAIN MINERALS FROM ANNEX-I
FURTHER LIBERALISATION IN INDUSTRIAL LICENSING
CANCELLATION/DELETION OF IEMs
TECHNOLOGY UPGRADATION IN GARMENT SECTOR
SETTING UP OF INDUSTRIES IN BACKWARD STATES
- PRESS NOTE NO.1(1994 Series)the 28th April, 1994 ABOLOTION OF PHASED MANUFACTURING PROGRAMME FOR EXISTING UNITS
- PRESS NOTE NO.2 (1994 Series) 3rd June, 1994
REVISED GUIDELINES FOR DETERMINING ISSUE PRICE OF PREFERENTIAL SHARES
SUBMISSION OF MONTHLY PRODUCTION RETURNS
MODIFIED POLICY FOR DRUGS & PHARMACEUTICALS INDUSTRY
MANUFACTURE OF CAUSTIC AND CHLORINE
REVISED NORMS FOR AUTOMATIC APPROVAL OF
FOREIGN TECHNOLOGY AGREEMENTS IN THE HOTEL INDUSTRY
REVISED GUIDELINES ISSUED FOR DETERMINING ISSUE PRICE OF PREFERENTIAL SHARES
REVISED POLICY AND PROCEDURE GOVERNING APPROVAL UNDER THE SCHEME FOR 100% EOUS & EPZS
DELEGATION OF POWERS FOR 100% EOUS EPZ UNITS
MANUFACTURE OF ASBESTOS & ASBESTOS BASED PRODUCTS
MANUFACTURE OF CELLULOSE FIBRE CEMENT BASED ON ASBESTOS FREE AND NON-WOOD PULP MATERIAL
REMOVAL OF STIPULATION RELATING TO MINIMUM EQUITY STAKE OF
SIDC IN THE JOINT VENTURE AND ASSISTED UNITS 5th November, 1996.
FURTHER LIBERALISATION IN PARAMETERS FOR AUTOMATIC APPROVAL IN FOREIGN COLLABORATION
FURTHER LIBERALISATION IN INDUSTRIAL LICENSING\
GUIDELINES FOR INDUSTRIAL LICENCES FOR SUGAR FACTORIES
EXPANSION OF LIST OF INDUSTRIES FOR AUTOMATIC APPROVAL FOR FOREIGN EQUITY
GUIDELINES FOR CONSIDERATION OF FOREIGN DIRECT INVESTMENT PROPOSALS BY FOREIGN INVESTMENT PROMOTION BOARD
GUIDELINES FOR NON-BANKING FINANCIAL SERVICES
DELEGATION OF POWERS FOR AUTOMATIC & POST APPROVAL AMENDMENTS FOR EHTP & STP
LOI GRANTED FOR NEW UNITS OF SUGAR
REMOVAL OF STIPULATION RELATING TO MINIMUM EQUITY STAKE OF SIDC
POLICY & PROCEDURE GOVERNING APPROVAL UNDER SCHEMES FOR 100% EOUs & EPZ
DELEGATION OF POWERS FOR POST APPROVAL AMENDMENTS FOR EHTP & STP
LICENSING OF INDUSTRIAL EXPLOSIVES
DELETION OF CERTAIN INDUSTRIES FROM LIST OF INDUSTRIES UNDER COMPULSORY LICENSING
FILING OF INDUSTRIAL ENTREPRENEURS MEMORANDUMCENSING
PROCEDURE RELATING TO APPROVALS FOR 100% EOUs FOR PETROLEUM REFINERIES
PROCEDURE FOR "FOREX BROKING"
REVISED CONSOLIDATED LIST FOR AUTOMATIC APPROVAL FOR FOREIGN EQUITY UP TO 50%/51%/74%
DELEGATION OF POWERS FOR EOU & EPZ UNITS
SETTING UP OF 100% EOUs FOR ACQUCULTURE & FISH/PRAWN PROCESSING UNITS
FILING OF INDUSTRIAL ENTREPRENEURS MEMORANDUM
REVISION OF FORM FOR FOREIGN COLLABORATION AND INDUSTRIAL LICENCE-COMPOSITE FORM
EXPORT OF COTTON YARN BY EOUs/EPZ UNITS
REVIEW OF INDUSTRIES COVERED UNDER INDUSTRIAL LICENSING
LIST OF INDUSTRIES/ITEMS FOR AUTOMATIC APPROVAL FOR FOREIGN EQUITY UPTO 100%
GRANT OF EXTENSION IN VALIDITY PERIOD OF THE LOI GRANTED FOR SETTING UP OF NEW SUGAR UNITS
REVISION OF FORM FOR INDUSTRIAL ENTREPRENEURS MEMORANDUM
CHANGE OF JURISDICTION FOR THE EHTP/STP PROJECTS LOCATED IN THE STATE OF TAMIL NADU
REVISED PROCEDURES GOVERNING APPROVAL UNDER THE SCHEME FOR EOU & EPZ UNITS
- PRESS NOTE NO. 19(1998 SERIES) dated 15th December,1998: Policy and Procedure governing automatic approval under the scheme for 100% Export Oriented Units (EOUs) and Export Processing Zone (EPZ) units – Liberalization Regarding.
- PRESS NOTE NO. 18 (1998 SERIES) 14th December,1998: Guidelines pertaining to approval of foreign/technical collaborations under the automatic route with previous ventures/tie-up in India.
- PRESS NOTE NO. 17(1998 SERIES) 13th November 1998: Export of Cotton Yarn by EOU/EPZ Units.
- PRESS NOTE NO. 16 (1998 SERIES) 3rd November 1998: FDI in the Non-Banking Financial Companies (NBFCs)
- PRESS NOTE NO. 15 (1998 SERIES) 15th October, 1998: Foreign Direct Investment in license companies operating GMPCS services upto 49% .
- PRESS NOTE NO. 14 (1998 SERIES) 16th October 98: Delegation of Powers for the Export Oriented Units and EPZ Units.
- PRESS NOTE NO. 13 (1998 SERIES) 1st September, 1998: NRI are also allowed equity
- participation in private sector banks up to 40%, which would be inclusive of equity participation by other foreign investors
- PRESS NOTE NO. 12 (1998 SERIES)31st August, 1998: De-licensing of Sugar Industry
- PRESS NOTE NO. 11 (1998 SERIES) 27th August, 1998: Policy, manufacture of cigarettes
- PRESS NOTE NO. 10 (1998 SERIES)15th December,1998: Adoption of pollution control measures-manufacture of new products and by products recovered through application of pollution control processes.
- PRESS NOTE NO. 9 (1998 SERIES) 27th August 1998: Grant of Industrial Licences/Foreign Collaboration approvals/Project Import Certification etc. for wood based items- prior clearance from the Ministry of Environment & Forests.
- PRESS NOTE NO. 8 (1998 SERIES): Amendment to the Industrial Entrepreneurs Memorandum
- PRESS NOTE NO.7 (1998 Series)20th July, 1998 AMENDMENT TO THE INDUSTRIAL ENTREPRENEURS MEMORANDUM
- PRESS NOTE NO.15 (1999 SERIES) 24th December, 1999 :Investment limit for small
- scale/ancillary industrial undertakings.
- PRESS NOTE NO. 14 (1999 SERIES): FDI in NBFC sector
- PRESS NOTE No. 12 (1999 SERIES)dated 1st July 1999 guidelines for foreign equity
investment in Non Banking Financial Services sector
- PRESS NOTE No. 11 (1999 SERIES)dated 1st July 1999: Guidelines for foreign equity
- investment in Non-Banking Financial Companies (NBFC
- PRESS NOTE NO..10 (1999 series) dated 12th April 1999 Guidelines pertaining to approval of foreign /technical collaborations under the automatic route with previous ventures / tie-ups in India.
- PRESS NOTE NO. 9 (1999 SERIES) 12th April, 1999: Policy relating to the standard
conditions applicable to foreign owned Indian holding companies requiring prior and specific approval of FIPB/Government for downstream investment in Annexure III activities, which qualify for Automatic Approval.
- PRESS NOTE NO.8(1999 SERIES) 7th April, 1999: Scheme to avail of fiscal concession under Section 80 IA of the Income Tax Act, 1961 for setting up industrial model towns/industrial parks.
- PRESS NOTE NO.7(1999 series) 1st April, 1999 no need for obtaining prior approval of FIPB / Government for increase in the amount of foreign equity within the percentage of foreign equity already approved.
- PRESS NOTE NO. 6 (1999 series) dated1stApril,1999 applicability of dividend balancing
- PRESS NOTE NO.5 (1999 SERIES) 19th March,1999: Proposals should be considered by the Board keeping in view the time-frame of thirty (30)days for communicating Government decision.
- PRESS NOTE NO. 4 (1999 SERIES)5th March,1999: Delegation of powers to the Development Commissioners of Export Processing Zones for post approval amendments - consolidated instructions.
- PRESS NOTE NO.3 (1999 SERIES) 26th February,1999: De-licensing of five bulk drugs
- PRESS NOTE NO.2 (1999 SERIES)18th January,1999: Export of cotton yarn by EOU/EPZ units.
- PRESS NOTE NO.1 (1999 SERIES) 4th January,1999: Projects for "construction and maintenance of roads, highways, vehicular bridges, toll roads, vehicular tunnels, ports
- and harbours" will be permitted foreign equity participation upto 100% on the automatic
- approval route, provided the total foreign equity in any such project does not exceed Rs.1500 crore.
- PRESS NOTE NO. 10 (2000 SERIES)dated 19th October 2000: Review of existing sectoral policy and sectoral equity cap for Foreign Direct Investment (FDI) and investment by Non Resident Indians (NRI) / Overseas Corporate Bodies (OCB).
- PRESS Note No. 9 (2000 series)dated 8th September 2000: Review of existing sectoral policy and sectoral equity cap for Foreign Direct Investment (FDI) and investment by Non Resident Indians (NRI) / Overseas Corporate Bodies (OCB).
- PRESS Note No. 7 (2000 Series)dated 14th July 2000: Review of existing sectoral policy and sectoral equity cap for Foreign Direct Investment (FDI) / Non Resident Indian (NRI) Overseas Corporate Bodies (OCB) Investment.
- PRESS Note No. 6 (2000 series)Dated the 31.3.2000: FDI in the Non-Banking Financial Sector– relaxation of norms – reg.
- PRESS NOTE NO. 5 (2000 Series)Dated : 29th March 2000: Export Obligation for EOU/EPZ Units
- PRESS NOTE NO. 4 (2000 SERIES): Reduction in the investment limit on SSI/ancillary
- undertakings - clarification of - regarding.
- PRESS NOTE No.3(2000 SERIES) 14th March, 2000: Reduction in the investment limit on SSI/ancillary undertakings - clarification of - regarding.
- PRESS NOTE NO. 09 (1991 Series) 2nd August, 1991: CHANGES IN PROCEDURES FOR INDUSTRIAL LICENSING
- PRESS NOTE NO. 10 (1991 Series) 14th August, 1991: PROCEDURES IN RESPECT OF FOREIGN TECHNOLOGY AGREEMENTS
- PRESS NOTE NO. 11 (1991 Series) 31st August, 1991: CHANGES IN PROCEDURES FOR FOREIGN INVESTMENT APPROVALS
- PRESS NOTE NO. 12 (1991 Series) 31st August, 1991: PROCEDURES IN RESPECT OF FOREIGN TECHNOLOGY AGREEMENT
- PRESS NOTE NO. 15(1991 Series) 25th October, 1991: THE JURISDICTION OF THE DEVELOPMENT COMMISSIONER, MADRAS EXPORT PROCESSING ZONE
- PRESS NOTE NO.16 (1991 Series) 8th November 1991: GUIDELINES FOR LICENSING OF SUGAR FACTORIES
- PRESS NOTE NO.17 (1991 Series) 19th November, 1991: PROCEDURES FOR INCREASE IN FOREIGN EQUITY TO 51% IN EXISTING COMPANIES
- PRESS NOTE NO.18(1991 Series) 25th November,1991:CLARIFICATIONS REGARDING HOTEL AND TOURISM RELATED INDUSTRY
- PRESS NOTE NO.19 (1991 Series) 9th December, 1991: IMPORT OF TECHNOLOGY AND CAPITAL GOODS UNDER TDF
- PRESS NOTE NO.20 (1991 Series) 13th December, 1991: REVISION OF APPLICATION FORM FOR FOREIGN INVESTMENTS/TECHNOLOGY AGREEMENTS
- PRESS NOTE NO.22(1991 Series) 24th December, 1991: AMENDMENT TO THE INDUSTRIAL ENTREPRENEURS MEMORANDUM
- PRESS NOTE NO.23 (1991 Series) 31st December, 1991: PROCEDURE FOR FOREIGN INVESTMENT IN TRADING COMPANIES
- PRESS NOTE NO.1 (1992 Series) 3rd January, 1992: REVIEW OF THE SCHEME OF RECOGNITION OF ADDITIONAL CAPACITY
- PRESS NOTE NO.12 (1992 Series) 26th June, 1992:-
Circulars/Notifications/Orders with file name indicating subject line in a self-explanatory manner:
|Notification No.||File No.||Subject Line|
|1.||S.O. 477(E) dated 25.07.1991||10(43)/91-L.P.||List of Industries in respect of which Industrial License is Compulsory|
|2.||S.O. 649(E) dated 03.06.2003||7(5)/2002-IP||Amendment in S.O. 477(E)|
|3.||S.O. 655(E) dated 05.06.2003||7(3)/99-IP||SSI Undertakings|
|4.||S.O. 1169(E) dated 20.10.2004||7(5)/2002-IP||Amendment in S.O 477(E)|
|5.||S.O. 1386(E) dated 23.09.2005||7(5)/2005-IP||Amendment in S.O 477(E)|
|6.||S.O. 229(E) dated 21.02.2006||7(3)/1999-IP||Enhancement of limit of 69 SSI items|
|7.||S.O. 2054(E) dated 14.08.2008||7(13)/2006-IP||Amendment in S.O 477(E)|
|8.||S.O. 3025(E) dated 28.12.2012||7(4)/2012-IP||Project Approval Board|
|9.||S.O. 1845(E) dated 24.06.2013||7(1)/2012-IP||Amendment in the composition of Licensing Committee|
|10.||S.O. 2113(E) dated 22.08.2014||7(2)/2014-IL(IP)||Allowing Private investment in Rail Infrastructure|
|11.||S.O. 998(E) dated 10.04.2015||7(5)/2002-IP||De-reservation of SSI items|
|12.||S.O. 2737(E) dated 11.08.2016||4(7)/1999-IP(Vol-III)||Amendment in the 1st Schedule of IDR Act, 1951|
|1.||Industries (Development & Regulation) Act, 1951|
|2.||Amendment of I(D&R) Act, 1953|
|3.||Industries (Development and Regulation) Amendment Act, 2016|
|4.||The Registration and Licensing of Industrial Undertakings Rules, 1952|
|5.||The Central Advisory Council (Procedural) Rules, 1952|
|6.||The Development Council (Procedural) Rules, 1952|
|7.||The Scheduled Industries (Submission of Production Returns) Rules, 1979|