The Municipal Corporation of Delhi (MCD) on Saturday introduced two reforms in the factory licensing ecosystem, aimed at simplifying regulations and providing much-needed relief to factory owners across the capital.

“These changes, approved by MCD Commissioner Ashwani Kumar, are expected to benefit thousands of industrial operators, streamline the process, and unlock access to government schemes and financing opportunities,” a statement by the police said.

It added, “One of the key reforms involves the rationalization of the previously complex and confusing floor-wise factory license policy. Factory owners who operate manufacturing processes on multiple floors of a building will now be able to apply for a single factory license rather than multiple licenses for each floor.”

The new guideline includes single ownership wherein factory owners with manufacturing operations across different floors in a single building will only need one factory license, provided the activities are integral to the same factory.

It also includes single GST number in which if the factory operates under a single GST number, the owner will be required to obtain only one industrial license, as long as the activities on different floors align with the declared factory activities in the GST.

Further, if the factory operates under multiple GST numbers across different floors, separate licenses will be required for each floor that corresponds to a distinct GST-related. Also, in cases where different owners run separate factories on various floors, each owner will be required to secure a factory license for their respective floor.

“This reform is designed to reduce bureaucratic hurdles and provide clarity for factory owners, while ensuring compliance with safety and building regulations, including fire safety standards, environmental norms, and the Unified Building Bye-Laws 2016,” he said.

In another landmark decision, the MCD will now grant factory licenses to the actual occupiers or tenants of industrial plots in relocation schemes, such as those in Narela, Bawana, and Badli. This decision addresses a long-standing demand from factory operators in these areas, who have previously faced obstacles in obtaining licenses due to restrictions on the transfer or subletting of plots.

Previously, factory operators in these relocation industrial plots, operating under sub-lease or GPA agreements, were unable to obtain factory licenses because the plots’ perpetual lease agreements did not allow for transfer or subletting without consent from the Delhi State Industrial & Infrastructure Development Corporation (DSIIDC).

Under the new policy, factory operators will be eligible for factory licenses if they meet environmental and safety requirements, including securing the necessary consent to operate from the Delhi Pollution Control Committee (DPCC) and a Fire Safety Certificate from the Delhi Fire Service.

However, the license will be revoked if the factory is closed by the DSIIDC, Lease Executing Authority, or DPCC. Additionally, factory operators will need to submit an affidavit stating that no industry is operating at the old location from where the relocation took place. These reforms are expected to have a significant impact on more than 25,000 factory owners, particularly in relocation of industrial areas. The ability to obtain factory licenses will provide these operators with greater access to finance from banks and other financial institutions. It will also enable them to take advantage of various government schemes and programmes aimed at promoting industrial growth and business development.

By simplifying the factory licensing process, the MCD aims to foster a more efficient, transparent, and business-friendly environment in Delhi, contributing to the broader goal of improving the ease of doing business in the capital.

These changes mark an important step towards empowering factory operators, ensuring their compliance with safety standards, and enabling them to fully participate in economic growth initiatives.