Delhi Streamlines Factory Licensing: MCD Introduces New Rules

Factory owners in Delhi's industrial areas are set to benefit from new regulations treating their property tax receipt as a valid factory licence. This initiative aims to enhance the ease of doing business by reducing bureaucracy and eliminating the need for separate MCD-issued licences.

In a significant move aimed at improving business conditions, factory owners in notified industrial areas of Delhi will now use their property tax receipts as valid factory licences. The Municipal Corporation of Delhi passed a proposal that eliminates the necessity for separate licences from the MCD.

The decision, passed on Thursday, also incorporates allotment or lease deeds and Udyam Registration Certificates as deemed factory licences under the Delhi Municipal Corporation Act, 1957. The simplification is designed to enhance ease of doing business by reducing bureaucratic hurdles.

With this update, factory owners will pay 5% of their annual property tax as a licence fee, consolidating efforts to minimize inspections and rent-seeking. Delhi Mayor Raja Iqbal Singh emphasized reducing unnecessary inspections while promoting a business-friendly environment.