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Ans.
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Way
back in 1991, the Government of India as a part
of liberalisation measures had delicensed most
of the industries. Licensing (Initially Letter
of Intent and thereafter conversion of LoI into
Industrial Licence) was required only in respect
of industries, for reasons related to security
and strategic concerns, social reasons, problems
related to safety and over-riding environmental
issues, manufacture of products of hazardous
nature and articles of elitist consumption.
Initially, 18 industries were placed in this
list but the same was pruned from time to time
and today, there are only six industries
requiring industrial licence. These six
industries include: distillation and brewing of
alcoholic drinks; Cigars and cigarettes of
tobacco and manufactured tobacco substitutes:
Electronic aerospace and defence equipment –
all types; Industrial explosives, including
detonating fuses, safety fuses, gun powder,
nitrocellulose and matches; Hazardous chemicals;
Drugs and Pharmaceuticals (according to modified
Drug Policy issued in September, 1994 and
subsequently amended in February, 1999). The
project however, should not be located within 25
km of a city with a population of more than one
million For the rest of the industries, the
Government of India have introduced a system of
filing an Industrial Entrepreneurs Memorandum (IEM).
For industries
requiring licence, the application in form IL-FC
which can be downloaded from the SIA website ( http://indmin.nic.in
) should be filed with the Secretariat for
Industrial Approvals (SIA). Approvals along with
a demand draft of Rs.2500/- drawn in favour of
Pay & Accounts Officer, Department of
Industrial Development, Ministry of Industry,
payable at the State Bank of India, Nirman
Bhavan Branch, New Delhi.
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