Renowned Business House of India recently entered into a collaboration with a Germany-based company for manufacturing of defense equipment. There shall be production of explosives also with modern technology. The manufac

CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2025
Renowned Business House of India recently entered into a collaboration with a Germany-based company for manufacturing of defense equipment. There shall be production of explosives also with modern technology. The manufacturing plant is proposed to be set up in an industrial area situated near to Greater Noida. However, the management is not sure as to the requirement of Industrial license. In view of the present situation, opine whether Industrial License will be required. Also detail the procedure for obtaining Industrial License.

Answer & Explanation:

With progressive de-licensing of the industries, only four industries have been retained under compulsory licensing under the Industries (Development & Regulation) Act, 1951: Electronic Aerospace and Defence Equipment Industrial Explosives Specified Hazardous Chemicals Cigars and cigarettes of tobacco and manufactured tobacco substitutes In the present case the collaboration with the German based Company is for manufacturing of defence equipment. Hence, Industrial License will be required. Procedure to apply for Industrial License All applications for Industrial License under IDR Act, 1951 can now be applied online on G2B Portal in Form FC-IL/FORM FC-IL - Composite form for Foreign Collaboration and Industrial License. The Applications are scrutinized for their completeness. Information in respect of incomplete applications is sought from the applicants. If the applications for grant of license are complete in all respect with necessary documents, DPIIT circulates them to concerned administrative ministries, Ministry of Home Affairs, Concerned State Government and other concerned agencies for their comments. After receipts of Comments from the concerned Ministries/Agencies, files are processed and submitted to the Licensing committee for consideration. Licensing committee can recommend for grant of license/rejection of proposal/deferment of the proposal, based on the comments received and deliberations in the Committee. After recommendation, the approval of the Minister in charge of DPIIT is obtained for grant of licenses or otherwise.

Topics: Setting Up of Business

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic