Wages 16-10-2018

PROCEDURE FOR GRANT OF LICENCE

Q1.       How to obtain licence?

Ans.     An occupier of a factory is required to obtain a Licence under the provisions of Rule 4 of the Delhi Factories Rules, 1950. For this purpose he is required to make an application to the Directorate of Industrial Safety & Health, Labour Department, Govt. of NCT of Delhi, D-Block, Second Floor, 5, Sham Nath Marg, Delhi-110054 in accordance with the provisions of the rules for one or five or ten years.

Q2.       Is there any restriction to obtain licence?

Ans.     Yes. Only the factories having manufacturing process employing 10 or more workers with aid of power or 20 or more workers without the aid of power can be granted the licence in conformed approved industrial areas.

The factories covered under the category of chemical factory, re-rolling mill and stone crushing are covered under Section 85 of the Factories Act, 1948 irrespective no. of workers and have to obtain licence. Notifications in this regard may be referred in notification section.

Q.3       Can a licence of a factory be granted in residential area?

Ans.     No. The factories cannot run in residential/non-conformed areas as per the directions of Hon’ble Supreme Court.

Q.4       What are the documents to be submitted for grant of licence?

Ans.     The following documents along with a forwarding letter are to be submitted for grant of Licence under the Factories Act, 1948:-

  1. Form No.2 duly filled in & signed by Occupier & Manager in triplicate.
  2. Fees in GAR 7. Fee as per Schedule appended below as per rule 5 is required to be paid in State Bank of India, Old Secretariat, Delhi. The applicant is required to fill-up Treasury Challan (G.A.R-7) in triplicate and get the Head of Account endorsed from the Directorate of Industrial Safety & Health. Thereafter the requisite fee is required to be paid in State Bank of India, Old Secretariat, Delhi. The original receipt (G.A.R-7) given by the Bank is required to be submitted to the Directorate of Industrial Safety & Health. All such applicants are advised to retain a photocopy of this receipt for payment of fees, with them before depositing the original receipt in the office.
  3. Existing building plan in duplicate of any existing premises in accordance with rule 3A of the Delhi Factories Rules, 1950 which was not previously approved by this Directorate for taken into use as a factory, is to be submitted along with the application.
  4. List of Partners/Directors with their residential address.
  5. NOC from other partners or Board Resolution by Directors for nomination of occupier as per sections 2(n) and 7 of the Factories Act, 1948.
  6. Proof/Supporting documents of Occupier as Director/ Partner/ Proprietor of the factory.
  7. Proof of sanctioned load of electricity (copy of electricity bill).
  8. Proof of occupancy (copy of rent agreement/ownership proof).
  9. Flow chart of manufacturing process.
  10. List of raw materials used in manufacturing process.
  11. List of machineries installed in the premises.
  12. Such other particulars as the Chief Inspector/Director (ISH) may require.

All such applications are scrutinized and in case of any defect the same is communicated to the applicant through a letter, pointing out the defects within a month.

If the application is complete in all aspects, the factory premises shall be inspected to adjudge suitability for grant of Licence. If factory conforms to the statutory requirements, the licence is granted by the Director (ISH) in prescribed Form No.4.

Q5.       Whether any fee is required to be paid?

Ans.     Yes, fee is payable as per Schedule appended below as per Rule 5 of the Delhi Factories Rules, 1950:-  

H.P. Installed Maximum number of workers to be employed on any day during the year

 

Upto 20

21 to 50

51 to 100

101 to 250

251 to 500

501 to 750

751 to 1000

Above 1000

 

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Nil

100

200

400

1000

1600

3000

4000

5000

Upto 10

200

400

480

1200

2400

3600

4800

6000

Above 10 and upto 50

400

600

800

2000

4000

6000

8000

10000

Above 50 and upto 100

800

1000

1200

3000

6000

9000

12000

15000

Above 100

1200

1600

2000

4000

8000

12000

16000

20000

Q6.       Whom to contact for grant of licence?

Ans.     Not required. If all documents are in order, the licence shall be granted within a month after inspecting the premises to adjudge the suitability of the premises for grant of licence. In case, the papers are incomplete the same shall be communicated in writing to the occupier/manager of the factory within a month to rectify the defects. In case, if there is any delay, the concerned Dy. Director (ISH) or the Director (ISH) may be contacted.

Q7.       What is the validity of licence granted?

Ans.     The licence is valid up to 31st December of the year upto which it has been granted.

Last Updated Date :- 29-04-2019

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