CII hails govt move to extend validity of industrial licence
Jul 02 2014 , New Delhi
Seeking to improve ease of doing business in India, the government today 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.
"It is heartening to see that for the extension of the industrial licence the companies are not required to go back to the licensing committee. It would now be done with the approval of the concerned Joint Secretary of Administrative Ministry".
"We hope that this would help in expeditious clearance of fresh industrial license applications and the extension of the existing industrial licenses," CII Director General Chandrajit Banerjee said.
Recently, the government took steps to improve India's ranking in ease of doing business. Recently, it has de-licensed several defence products for private sector. It has also upgraded the National Industrial Classification Code with a view to make business climate more investor friendly.
According to a World Bank report, India ranks at 134th position out 189 economies.
In its election manifesto, BJP has said that it would ensure "that a conducive, enabling environment is created making 'doing business' in India easy. We will focus on cutting the red tape, simplifying the procedures and removing the bottlenecks".