New Delhi: Industrial units running in Delhi’s notified industrial areas will no longer require a separate factory licence from the Municipal Corporation of Delhi, the civic body has announced, in a move aimed at enhancing efficiency and ease of doing business.
Such units, which are running in industrial areas notified by the Delhi government or Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), will be deemed to have been given approval by the MCD up on the payment of property tax and an additional fee, the municipal corporation said in an order 28 July.
Until now, such units needed to get a separate factory licence under the Delhi Municipal Corporation Act, 1957.
“Issuing of an independent permission/license by Factory Licensing Department, MCD to a factory operating in industrial areas established by GNCTD/DSIIDC is an additional redundant compliance burden,” the order states.
This move is expected to cut down bureaucratic red tape and enhance efficiency and ease of doing business for factory owners in Delhi. It would also give impetus to industrial growth in the national capital.
Welcoming the decision, Chief Minister Rekha Gupta’s office posted on X, “A historic change in the MCD factory license system has been implemented from today. Now factories operating in industrial areas recognized by GNCTD/DSIIDC will not need to obtain a separate factory license from MCD. Delhi Government has taken this important decision towards strengthening “Ease of Living” and “Ease of Doing Business”.”
Delhi Lieutenant Governor V.K. Saxena’s office also endorsed the move. “The decision to further enable businesses-especially the small and medium enterprises – is indeed commendable,” the LG Office posted on X.
MCD फैक्ट्री लाइसेंस व्यवस्था में ऐतिहासिक बदलाव आज से लागू किया गया है।
अब GNCTD/DSIIDC द्वारा मान्यता प्राप्त औद्योगिक क्षेत्रों में संचालित फैक्ट्रियों को MCD से अलग से फैक्ट्री लाइसेंस लेने की आवश्यकता नहीं होगी।
दिल्ली सरकार ने “Ease of Living” और “Ease of Doing Business”… pic.twitter.com/uHsxDrFJVj
— CMO Delhi (@CMODelhi) July 29, 2025
According to the order, Micro, Small and Medium Enterprises (MSME) units having the Udhyam Registration Certificate would be deemed allowed by the MCD under the section 416/417 of DMC Act, 1957.
Section 416 bars the establishment of a factory without the permission of the commissioner, while section 417 states any premises cannot be used for certain purposes without a licence.
For large industrial units, the allotment letter or lease deed issued by GNCTD/DSIIDC would be deemed permissible by the MCD under the same act.
But in both cases, factory owners are subject to pay a fee which is worth five percent of property tax. Once the fee and property tax have been paid, the receipt shall have the endorsement of being a permissible license under DMC Act, 1957.
“Upon the payment of Property Tax and Fee, the factory owner/operator shall download the payment receipt which shall inter-alia have the endorsement that MSME Udhyam Registration or allotment letter/lease-deed, as the case may be, is being recognised as permission/license u/s 416/417 of DMC Act, 1957.”
The unplanned industrial areas or clusters that are notified by the Delhi government are also covered under the order.
There is also a provision for factory owners that have not yet taken or renewed the licence to do so now on the property tax portal by paying the fee and downloading the endorsement.
It must be noted that while the need for permission from the factory licence department has been removed, the requirement for other licenses/permission from the Delhi Pollution Control Committee (DPCC) and the Delhi Fire Services (DFS) still holds. The factories are still required to get their building plan sanctioned and obtain a competition certificate from MCD.
(Edited by Ajeet Tiwari)
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