MNC Ltd. intends to commence the business of manufacturing cigarettes and tobacco products. The company approaches you to seek your advice on the requirement of industrial license for manufacturing cigarettes and tobacco

Industries retained under compulsory licensing: The following industries require compulsory license: Alcoholic drinks Cigarettes and tobacco products Electronic aerospace and defense equipment Explosives Hazardous chemicals such as hydrocyanic acid, phosgene, isocyanates and di-isocyanates of hydro-carbon and derivatives. Manufacture of items reserved for small scale sector by larger units: large or medium industries undertaking manufacture of items reserved for SSI units. The Government has reserved certain items for exclusive manufacture in the small-scale sector. Non-small-scale units can undertake the manufacture of items reserved for small scale sector, only after obtaining an industrial licence. In such cases, the non-small-scale unit is required to undertake an obligation to export 50% of the production of SSI reserved items. When the proposed location attracts locational restriction. Locational restrictions: Industrial undertakings to be located within 25 kms of the standard urban area limit of 23 cities having a population of 1 million as per 1991 census require an industrial license. Industrial license even in these cases is not required if: a unit is located in an area designated as an industrial area before 1991 or it is non-polluting industries such as electronics, computer software, printing and other specified industries. The DPIIT has established the Department for Promotion of Industry and Internal Trade G2B Portal - a single window portal to obtain clearance from various governments and government agencies. The portal is an integrated platform that provides access to government to business (G2B) services, such as filing of Industrial Entrepreneurs Memorandum (IEM) and Industrial License (IL) applications online. The online portal has the required authentication mechanisms for submitting IEM and IL applications. Previously, the application for registration was made to the Secretariat of Industrial Assistance (SIA), Department of Industrial Policy & Promotion (DIPP) along with a fee. Once the license is obtained, an industrial undertaking is eligible for the allotment of controlled commodities and for the issuance of an import license for goods required for its construction and operation. Accordingly, MNC Ltd. is advised.