Rule 118. (A). Grant of license for a factory

(1) No premises shall be used as a factory nor any manufacturing process carried on in any factory except under, and in accordance with, the license granted under these rules.

(2) The occupier of every factory shall, be for commencing any manufacturing process in any factory, apply online to the Licensing Authority in Form-XXIV, along with the requisite documents as mentioned therein, the Single Desk Portal or any other portal if notified by the State Government for the grant of license, along with the annual license fee as prescribed in the Schedule below.

Provided that if the manufacturing process is commenced in any factory without making the application for grant of license as aforesaid, the person determined by the Inspector cum Facilitator based on the material available with him with regard to the person having ultimate control over the affairs of the factory shall be deemed to be the occupier under this code till the license is granted in the manner prescribed in this sub-rule.

Provided further that for computing the quantity of power, for the purposes of this rule, the power installed for the plant and machinery used in the manufacturing process only shall be taken into account, and no account shall be taken of the power for lighting, or for any office equipment or appliances. The total installed horsepower of the plant, Machinery and equipment or the captive generation of power whichever is higher shall be taken into consideration.

(3) The concerned licensing authority shall, if the application is found in order or soon after the information called for if any is received, and after duly physically verifying the extent of implementation of the provisions of this code and rules made there under, either grant the license online in Form-XXV, subject to the conditions if deemed fit to impose for achieving compliance or reject the grant of license duly recording the reasons therein within the stipulated time as provided in the online portal. Provided further that if no order is communicated to the applicant within a period of seven working days from the date on which the applicant has sent the application online under sub-rule (A)(2), the license shall be deemed to have been granted, and thereupon the license shall be issued forthwith.

(4) The License granted shall be valid till it is duly cancelled.

(5) The occupier of every factory except Major Accident Hazardous Installation /factories (under MSIHC Rules), Bulk Drug factories and Hazardous Factories, can choose the licensing period either at the time applying for grant of license or later, for a block period up to 10 calendar years, by remitting the sufficient fee in multiples of annual fee with the number of calendar years so chosen. The license in such cases shall be granted /deemed to be granted for the applied block period, for the factories.

Provided that, in respect of Major Accident Hazardous Installations/ factories (under MSIHC Rules), bulk drug factories and hazardous factories, the licence is required to be renewed every year.

(6) The factory shall be deemed to have been fully licensed from the date of receipt of the application for grant of License referred to in sub-rule(A)(2),until the concerned Licensing Authority has either called for missing information or refused to grant the license.

(7) No manufacturing process shall be carried on in any factory without holding a valid license.

(8) A license granted shall be caused to be produced on demand to the Inspector-cum-Facilitator.

(9) State government may, by notification, prescribe the procedure, forms and manner for renewal of licence in respect to sub-rule(A)(5).

(B). Payment of late fee:

(1) If the prescribed annual license fee is not fully paid within the prescribed period in sub-rule (1), simple interest at the two percent per month or part of a month shall be payable on the part of the fee not paid from the first day of the calendar year till the last day of the calendar month in which the fee together with interest is paid.

(2) The Chief Inspector-cum-Facilitator may, if satisfied that there is sufficient reason for the non-payment of the annual license fee within the time prescribed in sub-rule (1), by order in writing, waive the interest specified.

Provided further that the Chief Inspector-cum-Facilitator may waive the license fee and the interest thereon if it is shown to his satisfaction that no manufacturing process has been carried on in the factory on any day of the relevant calendar year.

(C) Amendment of license:

(1) The occupier or the owner of a factory shall, within fifteen days of the occurrence of any change in the name of the factory, or in the particulars of the maximum horse power installed or maximum number of persons employed or change in the manufacturing process/line of activity/products manufactured, send to the Inspector-cum-Facilitator an application in Form XXIV online for the amendment of the original license stating the nature of the amendment to be made and the reasons therefore together with the fee prescribed.

(2) The fee for the amendment of a license shall be the amount, if any, by which the fee that would have been payable, if the license had originally been issued in the amended form exceeds the license fee payable for the relevant calendar year but for such amendment, together along with an amendment fee of Rs.1000/- or such other fee as may be notified by the State Government from time to time.

(3) If the application is made for amendment of the licence with regard to installed motive power involving expansion/change of line of activity, the licensing authority, after duly physically verifying the safety provisions for such extensions and installations under this code and rules made there under, shall amend the licence accordingly.

(D). Transfer of license:

(1) A license may be transferred from one owner/occupier to another, consequent to any transfer of the factory and the transferee shall send to the Inspector-cum-Facilitator an application online in Form-XXIV along with the Transfer Fee of Rs.1000/-or as may be notified by the State Government from time to time and the documentary evidence for establishing such change. The licensing authority shall, with due consideration of the factual material available to him in the application, either approve the transfer or reject the same online, duly recording the reasons therein within a period of seven working days from the date of receipt of the application.

(2) During the period from the day on which the occupier on record ceased to exercise the ultimate control over the affairs of the factory for any reason, till the date on which the application for transfer on the name of incoming occupier is received in manner prescribed vide sub rule (D)(1) above and during the period from the day on which the application for grant of license has been rejected in the manner prescribed vide sub rule(D)(1) above till the day a revised application for transfer of License is received online as aforesaid, the Inspector cum Facilitator shall determine the occupier based on the factual material available with him with respect to the person having the ultimate control over the affairs of the factory and such person shall be deemed to be the occupier under the Code for that period.

(E). Cancellation or Suspension of a Licence:

(1) The license granted stands cancelled or suspended for any of the following reasons.

a. Nonpayment of annual license fee before 31st December of preceding year.

b. If, there is an imminent danger to life and property in the factory or in the vicinity of the factory, due to handling of explosive or inflammable or toxic substances/ chemicals, and effective measures have not been taken to remove such danger. The Inspector-cum-Facilitator may, with previous approval of Chief Inspector cum Facilitator in this regard, by a speaking order served on the occupier, revoke the licence till such imminent danger has been removed.

Provided that before revoking the licence in respect of imminent danger, the applicant shall be given an opportunity to show cause as to why the licence shall not be revoked / invoked.

(2) The Inspector-cum-Facilitator may, by a speaking order served on the occupier, cancel or suspend any license issued if the annual license fee, together with interest if required, has not been paid.

(3) The Inspector-cum-Facilitator may cancel or suspend a license if an application has been made for such cancellation by the occupier.

(4) The Inspector-cum-Facilitator may, with the previous approval of the Chief Inspector cum Facilitator in this regard, by a speaking order served on the occupier, cancel a license if the occupier is found contravening the sub-section (5) of Section 84 of the code or the rules made there under.

Provided that, where the registration a factory is cancelled or suspended under Rule 3(1) or where the approved plan is cancelled or revoked under Rule 82(C), the licence granted under subrule A(3) shall stand cancelled automatically.

(F). Procedure on death or disability of licensee:

If a licensee dies or becomes insolvent, the person carrying on the business of such licensee shall not be liable to any penalty under the Code for exercising the powers granted to the licensee by the license within such time as may reasonably be required to allow him but not exceeding 30 days to make an application ONLINE portal for the transfer of the license under sub rule (D) in his own name for the unexpired portion of the original license.

(G) Issue of Duplicate License:

(i) Where a license granted under these rules is lost or accidentally destroyed, a copy of the license may be downloaded online.

(ii) A duplicate license may also be issued by Inspector-cum-Facilitator, if such an application is made through the online portal along with payment of Rs 1000/-or as may be notified by the State Government from time to time

(H). Notice of Change of the Manager in the Factory

(1) The occupier of every factory shall, within seven days of any change in the manager of any factory, send notice thereof in Form-XXVIII to the Inspector cum facilitator

(2) During the period for which no person was named as manager under this code or the person so named has not managed the affairs in the factory, the occupier shall be deemed to have been the manager under this code for that period.

(I) Payment of Fee: Every application under these rules for which a fee has been prescribed shall be made online and the appropriate fee has to be paid through online portal under the head of account 0230 Labour and Employment 104 Receipts under Labour Laws-Fees realized under the Occupational Safety, Health and Working Conditions Code, 2020.

SCHEDULE Maximum number of persons to be employed on any day during the year Quanti 20 50 10 150 250 500 100 150 200 300 500 100 Abo ty of 0 0 0 0 0 0 00 ve Max 10 H.P/ 00 K.W 0 Install ed 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Amount of Annual Licence fee to be paid in Rupees Nil 100 18 36 480 960 120 180 240 300 360 420 510 630 0 0 0 0 0 00 00 00 00 00 00 00 00 0 0 20/15 180 36 48 960 120 180 240 300 360 420 510 630 720 0 0 0 0 00 00 00 00 00 00 00 00 00 0 0 50/37 360 48 96 120 180 240 300 360 420 510 630 720 810 0 0 0 00 00 00 00 00 00 00 00 00 00 0 0 100/7 480 96 12 180 240 300 360 420 510 630 720 810 900 5 0 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 150/1 960 12 18 240 300 360 420 510 630 720 810 900 105 12 0 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 250/1 120 18 24 300 360 420 510 630 720 810 900 105 120 86 00 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 500/3 180 24 30 360 420 510 630 720 810 900 105 120 135 73 00 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 1000/ 240 30 36 420 510 630 720 810 900 105 120 135 150 746 00 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0 1500/ 300 36 42 510 630 720 810 900 105 120 135 150 165 1119 00 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0 0 2000/ 360 42 51 630 720 810 900 105 120 135 150 165 195 1492 00 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0 0 0 3000/ 420 51 63 720 810 900 105 120 135 150 165 195 250 2238 00 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0 0 0 0 5000/ 510 63 72 810 900 105 120 135 150 165 195 250 325 3730 00 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0 0 0 0 0 10000 630 72 81 900 105 120 135 150 165 195 250 325 400 /746 00 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Above 720 81 90 105 120 135 150 165 195 250 325 400 500 1000 00 0 0 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Provided that the above Annual License fee shall be as modified by means of a notification issued by the Government from time to time.