Professional Documents
Culture Documents
Industrial Licensing
Industrial Licensing
This Act came into effect on May 8, 1952. It had three important objectives:
1. To implement the industrial policy
2. To ensure regulation and development of important industries and
3. To ensure planning and future development of new undertakings
The Act applies to the whole of India, including the State of J&K, and to the
industrial undertakings, manufacturing any of the products mentioned in the
First Schedule, that is, where the manufacturing process is carried on
1. With the aid of power, and employing or employed on any day of the
preceding 12 months 50 or more workers; or
2. Without the aid of power, provided that 100 or more workers are working or worked on
any day of the preceding 12 months.
Creative Provisions
a. FDI up to 100 per cent under the automatic route permitted in construction development projects
b. FDI caps have been increased to 100 per cent and automatic route extended to coal and lignite mining for captive
consumption’s setting up of infrastructure relating to industry marketing in petroleum and natural gasas sector,
and exploration and mining of diamonds and precious stones.
c. FDI has been allowed up to 100 per cent on the automatic route in power trading and processing and
warehousing of coffee and rubber.
d. FDI has been allowed up to 51 per cent for “single brand” product retailing which requires prior government
approval.Specific guidelines have been issued for governing FDI for “single brand” product retailing.
e. FDI up to 49 per cent allowed with prior government approval in air transport services.
f. FDI up to 100 per cent allowed on the automatic route in greenfield airport projects. FDI up to 100 per cent also
allowed in existing airports but FDI beyond 74 per cent requiresprior government approval.
g. Mandatory divestment condition for B2B (business-to-business) e-commerce has been dispensed with.
h. FDI cap in basic and cellular telecom services has been enhanced from 49 per cent to 74 per cent. Detailed
guidelines have been notified vide Press Note 5 (2005 series), substituted by Press Note 3 (2007).
i. FDI is being allowed along with FII and portfolio investing within the ceiling of 20 per cent in the FM radio
broadcasting services.
j. FDI up to 49 per cent allowed with prior government approval for setting up uplinking hub/teleports.
k. FDI up to 100 per cent allowed with prior government approval for uplinking non-news TV channels.
l. FDI up to 26 per cent allowed in uplinking news and current affairs TV channels.
Foreign Direct Investment (FDI)
2. Procedural Simplification