2. Soil Investigation Report
• Necessary for designing foundations and tall structures
• Techno-economic feasibility report must be accompanied by a reliable
soil investigation report to support the decision on site selection
3. Clearance under MRTP act
• Till 1991, clearance under the MRTP act was a must for all new and
expansion projects of “large industrial houses”.
• Now the advance clearance requirement has been done away with,
and the emphasis has been shifted to controlling and regulating
monopolistic, restrictive and unfair trade practices, rather than
restricting the growth of large business houses.
4. Industrial License
• As per the Central Government’s Industrial Policy statement of 1991,
most of the industries are exempted from license
• The setting up of the industries shown in the following list and
pollution causing projects within 25 km from the periphery of the
standard urban area limits of a city having a population of more than
10 lakh requires industrial license (IL)
5. • Coal and Lignite
• Petroleum and products
• Distillation and brewing of alcoholic drinks
• Sugar
• Animal fats and Oils
• Cigars and Cigarettes of tobacco
• Asbestos and asbestos based products
• Plywood, decorative veneers and other wood based products
• Raw hides and skins, leather
• Tanned or dressed furskins
6. • Motor cars
• Paper and news print
• Aerospace and defense equipment
• Industrial explosives
• Hazardous chemicals
• Drugs and pharmaceuticals
• Entertainment electronics
• White goods ( washing machines, refrigerators, air conditioners,
microwave ovens)
7. • Not only setting up of new units, but also substantial expansion, take
over of an existing unit, taking up the manufacture of a new article in
the existing unit or even changing the location of an existing industrial
undertaking in these conditions require license.
• These rules are applicable equally to the public, joint and private
sectors.
8. • Industries reserved for the public sector as per the GOI industrial
policy statement, 1991 are
• Arms and Ammunition
• Atomic Energy
• Coal and Lignite
• Mineral Oils
• Mining
• Minerals
• Railway
9. Letter of Intent
• LOI precedes the IL
• Initial validity of IL is three years
• LOI is converted to IL after satisfying the conditions in LOI
• Secretariat for Industrial Approvals (SIA), Department of Industrial
development in the Ministry of Industries
10. Approval of Foreign Collaboration
• FC encompasses two distinct aspects, namely foreign investment and
foreign technology agreement
• The liberalized Industrial policy 1991 permits automatic approval for
import of technology in high priority industries.
• For non-priority industries, it would require Government approval
11. Approval of Foreign Consultant
• Presently GOI agrees to the engagement of a foreign consultant only
as a sub-consultant to render engineering services through an Indian
prime consultant
• Even sub-consultancy by a foreign consultant will be approved only if
• He is responsible for a patented technology which is the basic know
how for the proposed Indian project.
• His services are necessary for the scrutiny of the detailed engineering
done in India
• His services are vital in equipment selection and inspection
12. Foreign Exchange Clearances
• Automatic approval will be given by the RBI for direct foreign
investment up to 51 % of equity in high priority industries
• Foreign equity investment up to 49 % may be allowed in the public
sector undertakings to meet their FE requirements
• In 100 % EOU, foreign equity participation up to 100 % is permitted
