With an eye on upcoming municipal elections, BJP -ruled East Delhi Municipal Corporation (EDMC) on Monday passed a resolution to abolish factory licencing policy. Once abolished, the factory owners will be free to start their activity without procuring licence from the Corporations. There are indications that South Delhi Municipal Corporation (SDMC) and North Delhi Municipal Corporation (NMC) may also follow suit.
As per the existing Act, no person shall, without prior permission in writing from the commissioner, establish in any premises or materially enlarge or extend any factory workshop or trade premises in which it is intended to employ steam, electricity, water or other mechanical power.
The commissioner may refuse to give permission, if he is of the opinion that alteration, enlargement or extension of such a factory, workshop, or trade premises in the proposed passion would be objectionable by reason of the density of the population in the neighbourhood thereof or would be nuisance to the inhabitants of the neighbourhood.
Earlier, owners of small and medium scale industry raised their voices against the chalan issued by the Corporation for not showing licenses. Also, they had alleged that for licenses they were forced to complete lots of formalities with several departments.
EDMC Mayor Satya Sharma said, “Earlier pollution, fire and electric department were under control of the corporation bur now it all separated and for every factory, one need to take ‘No objection Certificate’ (NOC) from different departments such as Delhi Fire Service, Electrical Safety Department, Delhi Pollution Control Committee. As taking NOC from all the departments, causes delay in getting licenses.”
The officials of all three Corporations said the Industry Department of the Delhi Government also collects revenue for issuing licenses which creates hindrances between in the planned industrialisation in the city. “As the department collected less than 1 per cent revenue, it will have little effect on the finances of the MCDs but it will give relief to a sizeable number of factory owners,” said a senior official.