Obtaining Factory License in Chhattisgarh: Applicability, Benefits, Procedure & Penalty

As per the Factories Act, 1948, every factory owner must register their premises with the local authorities before commencing their business. Factory License acts as a document of approval given by authorities to carry out manufacturing activities. This is done to ensure the safety of the workers, and to affirm that factory owners are giving them a healthy and sound work environment. The Factories and Boilers department is the designated body that ensures that workers are well taken care of.

Applicability

Section 2(m) of the Factories Act, 1948 defines a factory as- “Factory” means any premises including the precincts thereof-

1. whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or

2. whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952 or a mobile unit belonging to the armed forces of the Union, railway running shed or a hotel, restaurant or eating place.

Hence, as per the Factories Act, 1948, any factory needs to obtain a factory license if:

1. 10 or more worker is involved in manufacturing activity with the aid of power on any day of the preceding 12 months, or

2. 20 or more worker is involved in manufacturing activity without aid of power on any day of the preceding 12 months

Before starting construction, reconstruction of a factory, or in the event of factory expansion, the entrepreneur/applicant must apply for approval of the factory plan and obtain permission for construction.

Key areas inspected before grant of license

1. The working environment of the factory should be kept safe from the point of view of the health of the workers.

2. The factory should be kept clean and free from dust and toxic gases. All roads and access roads should be kept free from obstruction.

3. Work-appropriate safety equipment such as shoes, gloves, helmet, face shield, safety belt for working at height, heat resistance aprons, leg guard, heat resistance gloves, gumboots for working in furnace, rubber aprons, rubber hand gloves, chemical safety goggles and face shield to workers working on chemicals handling and process etc.

4. Proper arrangement of drinking water should be made for the workers.

5. To provide separate adequate toilets and urinals for the use of male and female workers.

6. To make arrangements for first treatment in the factory.

7. If more than 150 workers are employed in the factory, then arrangements for rest houses should be made.

8. If more than 250 workers are employed in the factory, then canteen should be arranged.

9. Adequate firefighting arrangements should be made in the factory.

10. To give weekly off to the workers one day in a week. Display of notice of workers’ working hours.

11. Name to be entered in the attendance register of every worker working in the factory.

12. To give the benefit of paid leave to the workers at the rate of one day for 20 days.

13. If workers are made to work overtime, they should be paid double the rate.

14. No employment of child labour in the factory.

15. Women workers should not be made to work from 7.00 pm to 6.00 am.

15. To get the cranes, sweepers and other lifting machines and pressure instruments/equipment installed in the factory tested by competent persons.

16. Workers should be trained in terms of safety.

17. All moving dangerous parts of machines to be protected with safety cover.

18. Health check-up of all workers employed in hazardous category factories once in a year.

19. Striking gear and devices are provided for cutting off power in case of any emergency.

20. Awareness Program regarding hazards conducted to nearby vicinity of factory premises.

Benefits of obtaining license

1. Provides Specific Provision for Employees- The Act specifies the provisions associated with female employees and young people, wages for employees, work hours, working conditions, etc.

2. Avails Legal Benefits- The owner of the factory can avail of the legal benefits provided by the government under. different schemes.

3. Enhances Productivity- Proper enactment of compliances and guidelines of the Factories Act, 1948 enhances the productivity of the employees.

4. Regulates Various Matters- It helps in regulating various matters such as-

• Working hours,
• Wages/payments,
• Leaves,
• Holidays,
• Enlistment of juveniles/women,
• Hiring and termination of workers.

5. Ensuring Equal Benefits- Proper Compliances of the Factories Act helps in ensuring that every employee receives equal benefits.

Procedure for obtaining license

• Step-1

Create an applicant profile with the government website of the state where the factory would be set up. The Profile shall be created by using a verified e-mail id and password.

For factories to be set up in Chhattisgarh, create a single window login by visiting https://industries.cg.gov.in/msme/reports/login.aspx.

• Step-2

Login to the single window and register your unit by submitting required details in the portal.

On successful registration, Udyam Aakansha Certificate will be generated and the unit will display along with list of required approvals/clearance.

• Step-3

Go to Factory Plan approval and click “Apply”. You will be redirected to http://cglabour.nic.in/shramayukthome.aspx. Login and file Form-1A for approval of factory plans along with following documents:

1. Land ownership document- Registry certificate for own land/Lease documents for land on rent from private owners or industries department along with Address proof.

2. Consent to establish for water & air.

3. Business registration certificate (Certificate of Incorporation/Partnership Registration Certificate)

4. Consent letter from the Pollution department and NOC from the Fire department

5. A flow chart of the manufacturing process supplemented by a brief description of the process in its various stages

6. Plans, in duplicate, drawn to scale showing-

7. the site of the factory and immediate surroundings including adjacent buildings and other structures, roads, drains, etc.; and

8. the plan, elevation and necessary cross-sections of the various buildings indicating all relevant details relating to natural lighting, ventilation and means of escape in case of fire. The plans shall also clearly indicate the position of the plant and machinery, aisles and passage-ways. For hazardous industries, it’s compulsory to attach Onsite Emergency Plan.

On successful payment of the applicable fees, you can check the status of the application and download the certificate from the portal. The application is generally approved within 15 days.

• Step-4

For Factory License, once again go to factory details and list of required clearances. Go to Factory License and click “Apply”. You will be redirected to http://cglabour.nic.in/shramayukthome.aspx. Login and fill the required details such as number of employees that will be hired, type of manufacturing process, name and address of the occupier and manager, ID and address proof of the occupier and manager etc. in the form and pay the applicable fees.

The status of the application can be tracked from the portal. This process may take up to 90 days.

• Step-5

The authority will scrutinize the application form and verify the documents. In case a fresh application is filed, a factory inspector shall visit the site for physical inspection.

• Step-6

If there are no discrepancies and all the criteria and documentation are well met, a Conditional license is issued by the department.

• Step-7

Once the license is issued by the authority, the same can be downloaded from the web portal.

If the application has been cancelled by the department, the licensee can re-submit the application within 30 days after meeting the requisite corrections.

Penalty

If the provisions of the Factories Act, 1948 is not complied with, the occupier and manager of the factory shall each be guilty of the offence and punishable with imprisonment for a term which may extend to 2 years or with fine which may extend to Rs. 1,00,000 or with both, and if the contravention is continued after conviction, with a further fine which may extend to Rs. 1,000 for each day on which the contravention is so continued.

Procedure for obtaining Factory Licence in Chhattisgarh

Creating a Profile

Create a single window login by visiting https://industries.cg.gov.in/msme/reports/login.aspx.
The Profile shall be created by using a verified e-mail ID and password.

⇓

Registration of Factory Unit

Login and register your unit by submitting required details in the portal.

⇓

Udyam Aakansha Certificate will be generated on succesful registration and the unit will
display along with list of required approvals/clearance.

⇓

Factory Plan Approval

Go to Factory Plan approval and click “Apply”. You will be redirected to
http://cglabour.nic.in/shramayukthome.aspx. Login and file Form-1A for approval of factory
plans along with required documents.

⇓

Payment of Fees

Pay the applicable fees. Status of the application can be tracked from the portal.

⇓

Application for Factory License

Go to factory details and list of required clearances. Go to Factory License and click “Apply”. You
will be redirected to http://cglabour.nic.in/shramayukthome.aspx. Login and fill the required
details and pay the applicable fees.

⇓

Scrutiny of application by Authority

The authority will scrutinize the application form and a factory inspector shall visit the site for
physical inspection.

⇓

If there are no discrepancies and all the criteria and documentation are well met, a Conditional
license is issued by the department.

If the application has been cancelled by the department, the licensee can re-submit the
application within 30 days after meeting the requisite corrections.

⇓

Download the Factory License

Once the license is issued by the authority, the same can be downloaded from the web portal.