MCD planning to simplify process for issuance of factory licences
The decision was taken after rounds of meetings with traders. A joint meeting was also held with the representatives of Laghu Udhyog Bharti (Delhi State) on Tuesday, which was attended by mayor Raja Iqbal Singh and MCD commissioner Ashwani Kumar.
According to sources, a draft proposal submitted by the factory licence department suggests that the MSME Udyam registration should be considered equivalent to MCD's permission or licence for micro, small & medium enterprises operating in industrial zones established or acknowledged by Delhi govt or Delhi State Industrial & Infrastructure Development Corporation (DSIIDC).
For larger units in these areas, too, the proposal, which will be tabled in a house meeting for approval, has also made the same recommendation.
The department has also recommended synchronising the licence fee payment with the annual property tax collection schedule.
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If implemented, industry owners won't need to apply separately online for the factory licence. Previously, following directives from the lieutenant governor and the chief minister, MCD removed the requirement for a no-objection certificate from police for seven trade activities.
According to the proposal, while the department issues licences under sections 416-417 of Delhi Municipal Corporation Act, several industrial area associations and industry bodies have underlined the need for reforms to end the licence raj. "Though the abolition of licence will entail an amendment in DMC Act 1957, it will be appropriate to recognise the MSME Udyam registration or lease letter issued by GNCTD or DSIIDC as the factory licence as an interim step," it stated.
"Industrial areas are anyway meant for running industries or factories. Further, MCD provides civic services to all areas, not just to industrial areas. So the process for obtaining an MCD licence should be simplified," said traders.
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