MCD House passes major reform to ease factory licensing

NEW DELHI: The Municipal Corporation of Delhi (MCD) on Thursday passed a major reform for factory licensing in industrial areas. The move aims to eliminate “Inspector Raj”, said Delhi Mayor and ease compliance for entrepreneurs operating in areas designated by the Delhi government or DSIIDC.

Under the new system, industrial units holding an MSME Udyam Registration Certificate or an Allotment/Lease Deed from GNCTD/DSIIDC will be treated as possessing a deemed Factory License under Section 416/417 of the Delhi Municipal Corporation (DMC) Act, 1957. This reform removes the need for obtaining a separate factory license from MCD. Additionally, the factory license fee will now be fixed at 5% of the property tax and collected annually alongside it, replacing the earlier system of calculating fees based on electrical horsepower, which required physical inspections.

Mayor Sardar Raja Iqbal Singh hailed the reform as “historic,” stating, “This decision marks the end of Inspector Raj in factory license renewals and simplifies compliance for business owners.” The Mayor added that changes will soon be made to the MCD’s property tax portal to integrate license issuance and automate workflows.

The House proceedings, however, were disrupted by Aam Aadmi Party (AAP) councillors, who raised slogans demanding the regularisation of 12,000 temporary employees. Led by Opposition Leader Ankush Narang, AAP accused BJP of being “anti-Dalit” and blocking staff regularisation, prompting chaos and adjournment. BJP countered, accusing AAP of negative politics and disrupting proceedings by tearing agenda papers.