With polls on mind, East MCD passes resolution to abolish factory licences

With an eye on the upcoming election, the BJP-ruled East Delhi Municipal Corporation (EDMC) on Monday passed a resolution to abolish factory licensing. Once abolished, the factory owners will be free to start their activity without procuring licenses from the Corporations. “As recommended by the Standing Committee earlier, we have decided to give relief to the industrialists, traders and other professionals in industrial areas,” said Satya Sharma, Mayor of the EDMC.

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 neighborhood thereof or would be nuisance to the inhabitants of the neighborhood.

Earlier, owners of small and medium industries raised their voices against the Challan issued by the Corporation for not showing licenses and alleged that they need to undergo a lot of formalities with several departments for licenses.

The officials of the East Corporation said that the Industry Department of the Delhi government also collects revenue for issuing licenses which creates hindrances between in the planned industrialisation in the city. “As the department collected less than 1 per cent revenue, it will have little effect on the finances of the MCD but it will give relief to a sizeable number of factory owners,” said a senior official.