Centre Extends Validity Of Industrial Licenses Issued Under IDR Act To 15 Years

The Centre, on Monday (24 July), announced a major step towards greater ease of doing business by addressing the industry’s demand on increasing the initial validity period of industrial licenses.

In a press note issued by the Department for Promotion of Industry and Internal Trade (DPIIT) , the government announced that all industrial licenses to be issued under the Industries (Development and Regulation) Act will now be valid for 15 years, as against three years.

"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 increase in initial validity period for new licenses brings them at par with the validity of licenses being issued for defence items.

Further, the government has also extended the validity of industrial license in cases where the existing license holder has not commenced production of the items within 15 years of issue of license.

In such cases, an extension of three years may be granted by the concerned administrative ministry.

While India did away with licensing for industries from 1991 when it liberalised the economy, defence including aerospace along with alcohol production, tobacco, industrial explosives and some hazardous chemicals were kept under its purview.