Major Relief for Factory Owners: Single Licensing for Recognized Industrial Areas

Date: 28th July, 2025

In a significant move aimed at promoting the ‘Ease of Living’ and ‘Ease of Doing Business’, the Municipal Corporation of Delhi (MCD) has streamlined the licensing process for factories operating in designated industrial areas.

What’s Changed?

A recent order by the Factory Licensing Department, MCD, has clarified that factories located within industrial areas established or recognized by GNCTD (Government of National Capital Territory of Delhi) or DSIIDC (Delhi State Industrial and Infrastructure Development Corporation) no longer need to seek a separate factory license from MCD. This change comes under Sections 416/417 of the DMC (Delhi Municipal Corporation) Act, 1957.

Why This Matters

Previously, even if a factory operated in a certified industrial area (already regulated by GNCTD/DSIIDC), owners still had to undergo an additional round of licensing and compliance with MCD—adding paperwork, time, and redundant compliance costs.

With this order:

• One License is Enough: There is no need for a separate MCD factory license if the area is already recognized by GNCTD/DSIIDC for industrial purposes.
• Reduced Compliance Burden: This eliminates overlapping permissions and makes it easier for business owners to start and operate factories.
• Focus on Business: MCD acknowledges that its additional licensing did not offer any substantial benefit in regulated industrial areas, so this redundancy has been removed.

What Business Owners Should Do

If your factory is in an industrial area established/recognized by GNCTD or DSIIDC, you’re automatically considered compliant under MCD’s Factory Licensing rules. No further action is required from MCD regarding factory licensing.