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NDMC Do Aways the Factory Licence in Delhi

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In a move that will help the factory owners in the city, the Standing Committees of the North and South Delhi corporations have separately given nods to the proposals to do away with the factory licences.

The BJP, which rules the civic bodies in the national capital, has been wanting since long to abolish the system in order to improve ease of doing business.

The proposal is likely to be approved by the East Delhi Municipal Corporation as well during its Standing Committee.

The proposal now will to go through the House after which it will be sent to the government for notification.

The chairman of North Delhi Municipal Corporation (NDMC) Mohan Bhardwaj said that since the authority to give licences was transferred to Delhi Government, there was no need to continue this provision.

Radhe Shyam Sharma, chairman of Standing Committee of South Delhi Municipal Corporation (SDMC) said that the decision was taken to do away with the department giving factory licence since the task was no more with it and the permission of NGT for setting up of factory was also required now.

The factory licences, according to the proposal in the North Delhi Municipal Corporation’s Standing Committee, being issued by the two separate agencies (the corporation and the Delhi Government) is creating hindrances in planned industrialisation of the city and the Make in India policy.

The proposal states that most of the documents that the corporations ask for in the process don’t fall under the ambit of the Delhi Municipal Corporation Act either legally or administratively.

Further, the Delhi Government’s Industry Department also asks for almost the same documents to issue factory licences.

The proposal said removing Section 416, which pertains to factory licensing, from the DMC Act will have little effect on revenue, but will give relief factory owners and will improve the image of the corporation.

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