Srinivas, a resident of Telangana, wishes to set up a Cigarette manufacturing unit. He is of the view that after availing FSSAI registration, he can start his Cigarette factory and no other licensing is required for the
CS Executive · Setting up of Business Entities and Closure · PYQS · June 2021
Srinivas, a resident of Telangana, wishes to set up a Cigarette manufacturing unit. He is of the view that after availing FSSAI registration, he can start his Cigarette factory and no other licensing is required for the same. Explain Srinivas on the requirements of Industrial licensing based on category of Industries.
Answer & Explanation:
Though industrial licensing has been abolished for all, there are five industries which still fall under compulsory licensing mainly on account of environmental, safety and strategic considerations. They are: Distillation and brewing of alcoholic drinks Cigars and cigarettes of tobacco and manufactured tobacco substitutes Electronic Aerospace and defense equipment of all types Industrial explosives including detonating uses, safety fuses, gun power, nitrocellulose and matches Specified Hazardous chemical i.e. (i) Hydrocyanic acid and its derivatives (ii) Phosgene and its derivatives and (iii) Isocyanates &di-isocyanates of hydrocarbon, not elsewhere specified Hence, Srinivas has to license for setting up cigarette factory. FSSAI registration will not be the correct registration as the business falls under compulsory licensing.
Topics: Industrial Licensing
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