NEW DELHI: In a major relief to thousands of industrial units operating in the national capital, the Municipal Corporation of Delhi (MCD) has abolished the requirement for obtaining and renewing factory licences from the civic agency.
In the notified industrial areas, under the new system, the Factory Licence Fee will be fixed at 5% of the Property Tax. It will be collected annually along with Property Tax, simplifying both payment and compliance.
For industrial units in designated industrial areas, the MSME Udyam Registration Certificate or the Allotment/Lease Deed issued by the government’s DSIIDC will be treated as a deemed Factory Licence under Sections 416 and 417 of the DMC Act, 1957. This will eliminate the need for a separate factory licence from MCD, thereby reducing compliance burden on entrepreneurs.
The new system will reduce the number of inspections by MCD officials. It has also been a grievance of industrial units that MCD officials sometimes visit or inspect factory premises for the wrong reasons. Responsibility for ensuring compliance with fire safety, environmental clearances, and structural norms will rest solely with the factory owner/occupier, who must obtain all necessary approvals from the competent authorities. Required changes will be made to the MCD Property Tax portal to integrate factory licence issuance and automate the payment and compliance workflow.
Mayor Sardar Raja Iqbal Singh said that to promote Ease of Doing Business, MCD took the decision. The mayor stated that various industrial area associations and industry bodies have emphasised the need for reforms in the area of MCD licencing for factories and industrial units, highlighting that entrepreneurs are facing unease in conducting business.