BJP says it will junk factory licences if it wins civic polls

The Bharatiya Janata Party (BJP) on Thursday promised a host of measures, including doing away with factory licences, for Delhi’s trading community, which is considered its traditional support base, to bolster its campaign for the municipal elections scheduled on December 4

The Bharatiya Janata Party (BJP) on Thursday promised a host of measures, including doing away with factory licences, for Delhi’s trading community, which is considered its traditional support base, to bolster its campaign for the municipal elections scheduled on December 4. The measures will be part of the BJP’s manifesto that will be released on Friday.

New Delhi: BJP supporters attend an election campaign in support of party leader Jagmohan Mehlawat for MCD polls, in New Delhi, Thursday, Nov. 24, 2022. (PTI Photo/Kamal Singh)(PTI11_24_2022_000225A) (PTI)

According to Delhi BJP chief Adesh Gupta, “Once we are voted back to power again, we will exempt factories in industrial areas from all kinds of licences. We will end ‘inspector raj’ and ensure ease of doing business and promote manufacturing in the Capital. Factory owners will not have to take a licence to operate businesses in 30 industrial areas.”

To be sure, abolishing factory licences will require an amendment to the Delhi Municipal Corporation Act, which only the Centre can do. Gupta claimed that after the BJP returns to power in the Municipal Corporation of Delhi (MCD), the Centre will amend the Act.

“We approved a proposal to abolish the factory licences last year and sent it to the Delhi government’s urban development department for approval. But they did not do anything about it despite repeated follow up by the corporation,” he alleged, adding, “Now, the Centre will come out with a notification in this regard.”

A spokesperson of AAP declined to comment on the matter.

Industries in the Capital are allowed to operate in 28 approved industrial areas under the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) and 25 non-conforming areas which have been approved for redevelopment by the state government. The corporation’s factory licensing department is tasked with facilitating and regulating industrial activities in these areas.

All industrial units operating in these approved areas have to obtain a factory licence from the MCD and renew it either annually or every three years, said a senior MCD official. If the factory licences are abolished, this will provide relief to over 100,000 industrial units.

“Factory owners anyway have to take permission from several authorities such as Delhi government’s labour and industries departments, Delhi Pollution Control Committee, fire department, etc. There is no need for a factory licence and we want to ensure ease of doing business in the Capital,” Gupta said.

The BJP, which is seeking to maintain its hold over the Municipal Corporation of Delhi (MCD) for the fourth consecutive term, is going all out to provide all possible relief to the city’s trading community, party workers said. Apart from doing away with factory licences, the BJP will promise to further simplify the process to obtain or renew trade licences, which are essential for any commercial establishment in the city.

The BJP also said that the party has already given huge relief to traders, especially in unauthorised colonies, in property tax under the Samriddhi scheme. “The BJP has already waived off property tax of 17 years for property owners in unauthorised colonies if they deposit the tax for just one year. The penalty has been waived for six years in approved areas. We will end all problems related to trade licences,” said Gupta.

Meanwhile, industrial area associations said that MCD’s factory licences should have been abolished long ago and alleged the licence has, over the years, become a tool to harass factory owners.

Sunil Malhotra, president of Okhla Industrial Area Phase 1 and 2, said, “The factory licence has become a tool of harassment, as physical inspections by officials are still de rigueur despite the process being digitised. There is no need for a factory licence at all.”

Industrial associations also said that they have to registered with the Centre Small & Medium Enterprises (SME) Division and then take permission from the Delhi Pollution Control Committee, Delhi government’s labour department, Delhi Fire Service, etc. “The factory licence from MCD isadditional approval. In approved areas, the MCD doesn’t provide any service. Then why should we obtain a licence from them? While the process is online, the inspectors do come to check the licence. It only results in harassment,” Ashish Garg, general secretary of Narela Industrial Complex Association.