Seeking to improve ease of doing business in India, the Government on Wednesday decided to extend the validity period of industrial licence to three years with a provision for further extension of two years.
However, the commerce and industry ministry’s press note said that the licence will lapse automatically after five years in absence of commencement of commercial production.
“In supersession of all earlier Press Notes, the period of validity of Industrial licence is being extended from two years to three years as a measure for ease of doing business,” the note said.
“Renewal of licence would be allowed for a period of two years. Any Industrial licence, wherein commercial production has not started within a period of five years of issue of licence, will be treated as automatically lapsed,” it added.
Further it said that in case the company fails to start commercial production of items within three years of issue of licence, the application for extension of licence should be submitted to the concerned administrative ministry, 60 days prior to the expiry of three years period.