diff so 477 press note 9 (1)

8/18/2019 Diff SO 477 Press Note 9 (1)

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SO 477: In exercise of the powers conferred by sub-section (1) of section 29Bof the Industries(e!e"op#ent $nd %e&u"$tion) 'ct 191 (* of 191) $nd insupersession of notific$tionsof the *o!ern#ent of Indi$ in the +inistry ofIndustry (ep$rt#ent of Industri$"e!e"op#ent) ,o 2./00I%'07 d$ted2th +$rch 197 ,o S O 233() d$ted 1/th+$rch 19/ S O 143() d$ted.1st +$rch 19/ S O 4/.() d$ted /th 'u&ust 19/S O /.4() d$ted

11th ,o!e#ber 19/ S O /92() d$ted /th October 19/7 S O 29()d$ted .3th une 19// $nd S O 79() d$ted 2th Septe#ber 19/9 except

$srespects thin&s done or o#itted to be done before such supersession the5entr$"*o!ern#ent hereby exe#pts fro# the oper$tion of the pro!isions of

sections 13 11 11'$nd 1. of the s$id 'ct

Press note 9: Under this notification, industrialundertakings have been exempted from the

operationof Sections 10, 11, 11(! and 1" of the #($%&! ct,19'1 subect to fulfilment of certain

conditions)Section 10 refers to the re*uirement of registrationof existing industrial units) Section

11 refers to there*uirement of licensing of ne+ industrialundertakings) Section 11(a! deals +ith

licences forthe production of ne+ articles) Section 1" refers,inter alia to the re*uirement of

licensing for effectingsubstantial expansion)

Section 3 (d) "industrial undertaking" means any undertaking pertaining to a scheduledindustry carried on in one or more factories by any person or authority including government;

Section 3(i) "scheduled industry" means any of the industries specified in the Schedule I

1)(SO 477)Industri$" undert$6in&s set up by co#p$nies coinin& under the

pur!iew of the +onopo"ies$nd %estricti!e r$de 8r$ctices 'ct 199 (4 of199) $nd the orei&n xch$n&e %e&u"$tion'ct 197. (4 of 197.) sh$"" $"so

be co!ered by this notific$tion subect to the c"e$r$ncere;uired under the$fores$id 'cts

he $rtic"e(s) of #$nuf$cture sh$"" not be $n $rtic"e(s) inc"uded in Schedu"e

ISchedu"e II or Schedu"e III to this notific$tion < $nd(ii) he proposed proectsh$"" not be "oc$ted within 2 6#s fro# theperiphery of the st$nd$rd urb$n$re$ "i#its of cities h$!in& $ popu"$tion of#ore th$n 13 "$6hs $ccordin& to the1991 5ensus his condition sh$"" not$pp"y to ($) e"ectronics co#putersoftw$re $nd printin& industries $nd othernon-po""utin& industries th$t #$y benotified fro# ti#e to ti#e $nd (b) otherindustries pro!ided they $re "oc$tedwithin industri$" $re$s desi&n$ted by theSt$te *o!ern#ent(s) before u"y 24

1991

(Press note 9!icensing is exempted for industrialundertakings (including -&.P/&companies!

other than those in the small scale/ancillar2 sector, if (i! .he proposed article(s! of manufactureis not

included in nnex #, ## or is notreserved for small scale/ancillar2 sector)(ii! .he proposed proect is

not located+ithin 3' kms) from the peripher2 ofthe standard urban area limits of a cit2having apopulation of more than 10lakhs according to the 1991 4ensus)(ist enclosed!).his condition,

ho+ever, +ill not appl2to electronics, computer soft+are,printing industr2 and other non5

pollutingindustries that ma2 be notified fromtime to time) .his condition +ill alsonot appl2 to other

industries providedthese are located +ithin the areasdesignated as 6industrial areas7 b2 theState

8overnment(s! before ul2 3',1991) ll other units +ishing to locate+ithin restricted locations +ill

re*uirean industrial licence)

(Press note 9) Notwithstanding the above, the locationof industrial projects will be subject to

Central or State environmental laws orregulations including local zoning andland use laws and regulations

---------------------------------------------------------------------------------------------.)(8ress note 9) Substantial xpansion


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Substantial expansion of existing units +illalso be exempt from licensing provided theitem of

manufacture is not covered b2 nnex#, nnex ## or is reserved for the small scale/ancillar2 sector)

o+ever substantialexpansions +ill be subect to the locationalconditions set out in para ;(! above)

Section 1":13. urther provision for licensing of industrial undertakings in special cases!

(1) o o#ner of an industrial undertaking$ other than the %entral &overnment$ shall'(d) effect any substantial epansion of an industrial undertaking #hich has been registered orin respect of #hich a license or permission has been issued$ or Explanation: or the purposes of this section$ "substantial epansion" means the epansionof an eisting industrial undertaking #hich substantially increases the productive capacity ofthe undertaking$ or #hich is of such a nature as to amount virtually to a ne# industrialundertaking$ but does not include any such epansion as is normal to the undertaking havingregard to its nature and the circumstances relating to such epansion.

ress note * %+, license! -o#ever$ for effecting substantial epansion ofcapacity or formanufacturing a ne# article coveredby nne II$ at the same location$ theindustrialundertaking should apply for a licence under theI(/0) ct.

Section 3 (dd) "new article" in relation to an industrial undertaking which is registered or in respect of

which a license or permission has been issued under this Act, means-

(a) any article which falls under an item in Schedule I other than the item under which articles

ordinarily manufactured or produced in the industrial undertaking at the date of registration or

issue of the license or permission as the case may be, fall

(b) any article which bears a mark as defined in the !rade arks Act, #$%& ', or which is the

subect of a patent, if at the date of registration, or issue of the license or permission, as the

case may be, the industrial undertaking was not manufacturing or producing such articlebearing that mark or which is the subect of the patent

4) (SO 477)Section 11' of the s$id 'ct subect to the condition th$t the new

$rtic"e sh$"" notbe $n $rtic"e inc"uded in Schedu"e I Schedu"e II or Schedu"e IIIto this notific$tion$nd sh$"" not in!o"!e $ny $ddition$" in!est#ent in p"$nt $nd

#$chinery(Press


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(b) in the case of an industrial undertaking in respect of which a license or permission has been

issued under section ##, he has had the eisting license or permission amended in the prescribed

manner

Section 3 (bb) "eisting industrial undertaking" means-

(a) in the case of an industrial undertaking pertaining to any of the industries specified in the

Schedule I as originally enacted, an industrial undertaking which was in eistence on the

commencement of this Act or for the establishment of which effecti+e steps had been taken

before such commencement, and

(b) in the case of an industrial undertaking pertaining to any of the industries added to

Schedule I by an amendment thereof, an industrial undertaking which is in eistence on the

coming into force of such amendment or for the establishment of which effecti+e steps had

been taken before the coming into force of such amendment

Section 12. egistration of eisting industrial undertakings

(#) !he owner of e+ery eisting industrial undertaking, not being the entral *o+ernment, shall, within

such period as the entral *o+ernment may, by notification in the .fficial *a/ette, fi in this behalf

with respect to industrial undertakings generally or with respect to any class of them, register the

undertaking in the prescribed manner

(') !he entral *o+ernment shall also cause to be registered in the same manner e+ery eisting

industrial undertaking of which it is the owner

(3) 0here an industrial undertaking is registered under this section, there shall be issued to the owner

of the undertaking or the entral *o+ernment, as the case may be, a certificate of registration

containing the producti+e capacity of the industrial undertaking and such other particulars as may be

prescribed

(%) !he owner of e+ery industrial undertaking to whom a certificate of registration has been issued

under this section before the commencement of the Industries (1e+elopment and 2egulation)

Amendment Act, #$3, shall, if the undertaking falls within such class of undertaking as the entral

*o+ernment may, by notification in the .fficial *a/ette, specify in this behalf, produce, within such

period as may be specified in such notification the certificate of registration for entering therein the

producti+e capacity of the industrial undertaking and other prescribed particulars

(4) In specifying the producti+e capacity in any certificate of registration issued under sub-section (3),

the entral *o+ernment shall take into consideration the producti+e or installed capacity of the

industrial undertaking as specified in the application for registration made under sub-section (#), thele+el of production immediately before the date on which the application for registration was made

under sub-section (#), the le+el of the highest annual production during the three years immediately

preceding the introduction in 5arliament of the Industries (1e+elopment and 2egulation) Amendment

6ill, #$3, the etent to which production during the said period was utili/ed for eport and such other

factors as the entral *o+ernment may consider rele+ant including the etent of under-utili/ation of

capacity, if any, during the rele+ant period due to any cause

Section 11. icensing of ne# industrial undertakings

(#) 7o person or authority other than the entral *o+ernment, shall, after the commencement of this

Act, establish any new industrial undertaking, ecept under and in accordance with a license issued in

that behalf by the entral *o+ernment8


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+4I/5/ that a go+ernment other than the entral *o+ernment may, with the pre+ious permission

of the entral *o+ernment, establish a new industrial undertaking

(') A license or permission under sub-section (#) may contain such conditions including, in particular,

conditions as to the location of the undertaking and the minimum standards in respect of si/e to be

pro+ided therein as the entral *o+ernment may deem fit to impose in accordance with the rules, if

any, made under section 3&

Section 11. icense for producing or manufacturing ne# articles

!he owner of an industrial undertaking not being the entral *o+ernment which is registered under

section #& or in respect of which a license or permission has been issued under section ## shall not

produce or manufacture any new article unless-

(a) in the case of an industrial undertaking registered under section #&, he has obtained a license for

producing or manufacturing such new article and

(b) in the case of an industrial undertaking in respect of which a license or permission has beenissued under section ##, he has had the eisting license or permission amended in the prescribed

manner

Section13. urther provision for licensing of industrial undertakings in special cases

(#) 7o owner of an industrial undertaking, other than the entral *o+ernment, shall-

(a) in the case of an industrial undertaking re9uired to be registered under section #&, but

which has not been registered within the time fied for the purpose under that section, carry

on the business of that undertaking after epiry of such period, or

(b) in the case of an industrial undertaking the registration in respect of which has been

re+oked under section #&A, carry on the business of the undertaking after the re+ocation, or

(c) in the case of an industrial undertaking to which the pro+isions of this Act did not originally

apply but became applicable after the commencement of this Act for any reason, carry on the

business of the undertaking after the epiry of three months from the date on which the

pro+isions of this Act became so applicable, or

(d) effect any substantial epansion of an industrial undertaking which has been registered or

in respect of which a license or permission has been issued, or

(e) change the location of the whole or any part of an industrial undertaking which has beenregistered,

ecept under, and in accordance with, a license issued in that behalf by the entral *o+ernment, and

in the case of a State *o+ernment, ecept under and in accordance with the pre+ious permission of

the entral *o+ernment

(') !he pro+isions of sub-section (') of section ## and of section #' shall apply, so far as may be, in

relation to the issue of licenses or permissions to any industrial undertaking referred to in this section

as they apply in relation to the issue of licenses or permissions to a new industrial undertaking

Explanation: :or the purposes of this section, "substantial epansion" means the epansion of an

eisting industrial undertaking which substantially increases the producti+e capacity of the

undertaking, or which is of such a nature as to amount +irtually to a new industrial undertaking, but


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does not include any such epansion as is normal to the undertaking ha+ing regard to its nature and

the circumstances relating to such epansion

Section 6*,. o#er to eempt in special cases

(#) If the entral *o+ernment is of opinion, ha+ing regard to the smallness of the number of workersemployed or to the amount in+ested in any industrial undertaking or to the desirability of encouraging

small undertakings generally or to the stage of de+elopment of any scheduled industry, that it would

not be in public interest to apply all or any of the pro+isions of the Act thereto, it may, by notification in

the .fficial *a/ette, eempt, subect to such conditions as it may think fit to impose, any industrial

undertaking or class of industrial undertakings or any scheduled industry or class of scheduled

industries as it may specify in the notification from the operation of all or any of the pro+isions of this

Act or any rule or order made thereunder

(')0here any notification under sub-section (#) granting any eemption is cancelled, no owner of any

industrial undertaking to which the pro+isions of section #&, section ##, section ##A or clause (d) of

sub-section (#) of section #3, would ha+e applied, if the notification under sub-section (#) had not

been issued, shall carry on the business of the undertaking after the epiry of such period as may bespecified in the notification canceling the eemption ecept under and in accordance with a license

issued in this behalf by the entral *o+ernment and, in the case of a State *o+ernment, ecept under

and in accordance with the pre+ious permission of the entral *o+ernment

('A) In particular, and without preudice to the generality of the pro+isions of sub-section (#), the

entral *o+ernment may, if it is satisfied, after considering the recommendations made to it by the

Ad+isory ommittee constituted under sub-section ('6), that it is necessary so to do for the

de+elopment and epansion of ancillary, or small scale, industrial undertakings, by notified order,

direct that any article or class of articles specified in Schedule I shall, on and from such date as may

be specified in the notified order (hereafter in this section referred to as the "date of reser+ation"), be

reser+ed for eclusi+e production by the ancillary, or small scale, industrial undertaking (hereafter in

this section referred to as "reser+ed article")

('6) !he entral *o+ernment shall, with a +iew to determining the nature of any article or class or

articles that may be reser+ed for production by the ancillary, or small scale, industrial undertakings,

constitute an Ad+isory ommittee consisting of such persons as ha+e, in the opinion of that

go+ernment, the necessary epertise to gi+e ad+ice on the matter

(') !he ad+isory committee shall, after considering the following matters, communicate its

recommendation to the entral *o+ernment, namely-

(a) the nature of any article or class of articles which may be produced economically by the

ancillary, or small scale, industrial undertakings

(b) the le+el of employment likely to be generated by the production of such article or class of

articles by the ancillary, or small scale, industries undertakings

(c) the possibility of encouraging and diffusing entrepreneurship in industry

(d) the pre+ention of concentration of economic power to the common detriment and

(e) such other matters as the Ad+isory ommittee may think fit

('1) !he production .f any reser+ed article or class of reser+ed articles by any industrial undertaking

(not being an ancillary, or small scale, industrial undertaking) which, on the date of reser+ation, isengaged in, or has taken effecti+e steps for, the production of any reser+ed article or class of reser+ed


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articles, shall, after the commencement of the Industries (1e+elopment and 2egulation) Amendment

Act, #$;%, or, as the case may be, the date of reser+ation, whiche+er is later, be subect to such

conditions as the entral *o+ernment may, by notified order, specify

('


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diff so 477 press note 9 (1)

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