The department for promotion of industry and internal trade (DPIIT) stated in a press note that this decision is intended to promote ease of doing business.
“Replacing all previous Press Notes, the period of validity for industrial licenses is being extended to fifteen years for all types of licenses granted under IDR Act, aligning with the validity of licenses issued for defense items as a measure to facilitate ease of doing business,” explained the DPIIT.
The concerned ministry can grant an extension of up to three years.
According to the guidelines, this applies to cases where the existing license holder has not commenced production of the items within 15 years of receiving the license.
Applicants must meet certain requirements for extension, such as owning or leasing land for a minimum period of 30 years, completing construction on the project, and installing/activating plant and machinery for the project.
“Any industrial license that hasn’t commenced commercial production even within the extended period (15+3, a maximum of 18 years from the date of the license), will be considered automatically expired,” stated the department in the note.