The Department of Promotion of
Industry and Internal Trade (“DPIIT”), to improve the ease of doing
business in India, has released a draft press note on its website . DPIIT has
attempted to simplify the procedure for filing industrial entrepreneur
memorandum (“IEM”) required to be filed by industrial undertakings under
the Industries (Development and Regulation) Act, 1951 (“Act”).
Industry and Internal Trade (“DPIIT”), to improve the ease of doing
business in India, has released a draft press note on its website . DPIIT has
attempted to simplify the procedure for filing industrial entrepreneur
memorandum (“IEM”) required to be filed by industrial undertakings under
the Industries (Development and Regulation) Act, 1951 (“Act”).
The industrial undertakings:
(a)
which
are exempted from the requirement of obtaining an industrial license under the
Act; and
which
are exempted from the requirement of obtaining an industrial license under the
Act; and
(b)
have
an investment of INR 10 Crores or above in manufacturing sector and/ or INR 5
Crores or above in the service sector
have
an investment of INR 10 Crores or above in manufacturing sector and/ or INR 5
Crores or above in the service sector
are required to file information
relating to setting up of industries by way of IEM.
relating to setting up of industries by way of IEM.
The press note provides for new
projects for manufacturing of articles which not covered by compulsory
licensing or their substantial expansion, under the Act, shall file the IEM in
the format proposed to be prescribed along with the press note.
projects for manufacturing of articles which not covered by compulsory
licensing or their substantial expansion, under the Act, shall file the IEM in
the format proposed to be prescribed along with the press note.
The IEM shall be filed by the
industrial undertaking within 120 days of commencement of commercial production
by using online services provided by DPIIT. On filing the IEM, the DPIIT shall
expeditiously provide IEM acknowledgement receipt and no receipts shall be
refused by DPITT on the grounds that IEM has been filed by an industrial undertaking
after 120 days.
industrial undertaking within 120 days of commencement of commercial production
by using online services provided by DPIIT. On filing the IEM, the DPIIT shall
expeditiously provide IEM acknowledgement receipt and no receipts shall be
refused by DPITT on the grounds that IEM has been filed by an industrial undertaking
after 120 days.
The aforesaid changes have been
made to improve the ease of doing business in India. Hence, the requirement of
filing IEM Part A and Part B have been dispensed off by DPIIT. However, to
ensure a smooth transition to the new procedure, IEM Part B will be accepted by
DPIIT for a period of three months from the date of notification of the press
note.
made to improve the ease of doing business in India. Hence, the requirement of
filing IEM Part A and Part B have been dispensed off by DPIIT. However, to
ensure a smooth transition to the new procedure, IEM Part B will be accepted by
DPIIT for a period of three months from the date of notification of the press
note.
