In Big Relief For Factory Owners, Delhi Civic Body Simplifies Licensing Rules

New Delhi, Jul 10 Factory owners in Delhi's notified industrial areas will no longer need separate license from the MCD, as a new rule will treat their property tax receipt as a valid factory licenses.
The Municipal Corporation of Delhi (MCD) on Thursday passed a proposal to treat allotment or lease deeds issued by the Delhi government and Ministry of Micro, Small & Medium Enterprises' Udyam Registration Certificates as "deemed factory licences" under Sections 416 and 417 of the Delhi Municipal Corporation Act, 1957.

In a move aimed at promoting ease of doing business, the proposal passed during the Corporation's ordinary meeting eliminates the need for MCD-issued factory licences in industrial areas notified by the Delhi government or DSIIDC.

Factory owners in these areas will now pay 5 per cent of their annual property tax as the license fee. A single receipt will serve as proof of both property tax payment and factory license, thus ending the era of frequent inspections and reducing the scope for rent-seeking by officials.

Delhi Mayor Raja Iqbal Singh said that the new system will reduce unnecessary inspections by MCD officials. The responsibility for ensuring compliance with fire safety, environmental clearances and structural norms will rest solely with the factory owner or occupier, who must obtain all necessary approvals from the competent authorities. Necessary changes will be made to the MCD Property Tax portal to integrate factory license issuance and automate the payment and compliance workflow.

He added that, in order to promote a business-friendly environment, the BJP has taken a historic decision to eliminate the "Inspector Raj" from the process of factory license renewal.

In another first, the House also approved the allocation of development funds to nominated councillors of the MCD.

The House also cleared several other proposals related to garbage collection and transportation in the South, West and Central zones under the public-private partnership model.

Meanwhile, at the beginning of the House meeting, the proceedings were disrupted as AAP councillors started raising slogans and waving placards that read "BJP anti-Dalit" while demanding the confirmation of jobs of 12,000 contractual employees.

The mayor then adjourned the House for 10 minutes. When the session resumed, AAP councillors continued their protest, but the mayor proceeded to pass several agenda items.

On the issue of waterlogging after Wednesday's rain, Standing Committee Chairperson Satya Sharma said no waterlogging was reported in the city and credited the preventive measures taken by the MCD.

Leader of the House Pravesh Wahi also alleged that AAP councillors tore up agenda papers and disrupted the session multiple times.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)