Civic bodies to scrap factory licensing dept after failure to meet target

According to MCDs, there are over 1.5 lakh factories in the city but the department, which spends over Rs 10.4 crore on salaries, could fetch only Rs 1.62 crore against the target of Rs 2,100 crore for the financial year 2014-15.

The decision was taken after giving a final chance to the department which had collected only Rs 1,000 as <g data-gr-id="45">tax</g> in 2013-14. Once abolished, the factory owners will be free to start their activity without procuring <g data-gr-id="42">license</g> from the Corporations.

As per the existing Act, no person shall, without prior permission in writing from the commissioner, establish in any premises or materially alter 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.

The two Corporations — North and South, on Tuesday approved the abolition of the provision of Factory Licensing under Section 416 of the DMC Act 1957 (amended), claiming that they have not been achieving the revenue target since decades. They accepted that the department has become a den of corruption also.

“There were complaints of corruption in this department and the move will provide relief to the factory owners, traders, etc. There are over 1.5 lakh industries in the <g data-gr-id="48">city</g> but the department has been collecting license fee from only 4,500 units. The department has failed to achieve the target even after spending crores of rupees on salaries and other allowances,” said MP Bhardwaj, 

Chairman of Standing Committee of North MCD.

The South Corporation, too, announced the move claiming that it will provide relief to the people of the city. “We have approved the decision which will be passed in the next meeting of the House. After getting the go ahead, the same will be forwarded to the state government for the final nod. If things go well, the plan will be materialised and will be implemented in the region,” said Radhey Shyam Sharma, Chairman of Standing Committee of South MCD. The EDMC also announced to have passed the proposal in the next meeting of the Standing Committee on the lines of the Corporations.

The officials of all three Corporations said that the Industry Department of the Delhi government also collects revenue for issuing licenses which <g data-gr-id="40">creates</g> hindrances between in the planned industrialisation in the city. “As the department collected less than 1 <g data-gr-id="33">per cent</g> 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.