NEW DELHI: The Commerce and Industry Ministry has proposed to simplify filing procedure for industrial entrepreneur memorandums (IEMs) with a view to promote ease of doing business.
The Department of Industrial for Promotion of Industry and Internal Trade (DPIIT) under the ministry said in a draft note that "as a measure to improve ease of doing business, the extant requirement of filing IEMs at two stages stands dispensed with for all business not requiring an industrial license".
The two stages of IEMs are intent and implementation.
The memorandum will have to be filed within 120 days of commencement of commercial production, it said.
The department will expeditiously acknowledge the receipt of the memorandum.
"No acknowledgement shall be refused for the reason that the memorandum is filed after 120 days," it added.
Besides, in respect of new projects for manufacturing of articles not covered by the compulsory licensing of their substantial expansion, the only requirement will be to file a memorandum.
As per annual report of the department, all units that are exempted from obtaining an industrial license, and invest more than ₹10 crore in plant and machinery ( ₹5 crore for the services sector) are required to file an IEM with the government.
Filling an IEM is primarily for the purpose of collecting data about the delicensed sector on proposed investment and type of industrial activity. It was started in August 1991.