The Enterprise who intends to start manufacturing any item other than the items which requires Industrial License under Industrial (Development & Regulation ) Act 1951, with proposed investment in plant & machinery more than ₹ 10 Crores or Service industry with investment in Equipments more than ₹ 5 Crores the enterprise has to file Industrial Entrepreneurs Memorandum (IEM) in prescribed format on line to Government of India, Department of Industrial Policy & Promotion, Secretariat of Industrial Approvals (SIA), Government of India, New Delhi along with the fee of ₹ 1000/-.

Industrial License (IL)

There are 5 items reserved in Schedule-II for compulsory licensing. They are as under:

1. Distillation and brewing of alcoholic drinks.(Licensing ceased by DIPP in compliance with Supreme Court Order of 29.1.1997 in Bihar Distillery case which ruled that industries engaged in manufacture of potable alcohol would be under the jurisdiction of the States)
2. Cigars and cigarettes of tobacco and manufactured tobacco substitutes
3. Electronic Aerospace and defense equipment: All types
4. Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and matches
5. Specified Hazardous chemicals i.e. (i) Hydrocyanic acid and its derivatives, (ii) Phosgene and its derivatives and (iii) Isocyanates & diisocyanates of hydrocarbon, not elsewhere specified (example Methyl isocyanate)

The unit who intends to start manufacturing of any of these item has to file application for Industrial License in prescribed format to Department of Industrial Policy & Promotion, Secretariat of Industrial Approvals (SIA), Government of India, New Delhi along with the Demand Draft of ₹ 2500/- personally or by post.