Which industries come under the purview of compulsory licensing as per New Industrial Policy, 2015?

CS Executive · Setting up of Business Entities and Closure · PYQS · December 2018
Which industries come under the purview of compulsory licensing as per New Industrial Policy, 2015?

Answer & Explanation:

Compulsory Licensing Industrial Licensing was also abolished for all the Industries except for a short list of 18 industries in New Industrial Policy 1991. This number was further pruned to six industries. As in 2015, only five industries were 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. All types of Electronic Aerospace and defence equipment Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and matches. Specified Hazardous chemicals i.e. (i) Hydrocyanic acid and its derivatives, (ii) Phosgene and its derivatives and (iii) Isocyanates & diisocyanates of hydrocarbon, not elsewhere specified (example Methyl. isocyanate) Regarding Alcoholic products, we note that production of rectified spirit exclusively for industrial use falls under the Centre's purview while in the case of potable alcohol, states have the last word. (This is as per Supreme Court decision in "Bihar Distillery Case"). So, DIPP is not the licensing authority in case of potable alcohol.

Topics: Industrial Policy

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