(1) The manufacture of cocaine and its salts is prohibited save the manufacture of cocaine hydrochloride by the chemical staff employed under the Central Board of Excise and Customs from confiscated cocaine.
(2) The manufacture of morphine, codeine, dionine, thebaine, dihydro codeinone, dihydrocodeine, acetyldihydrocodeine, acetyldihydrocodeinone, dihydromorphine, dihydromorphinone, dihydrohydroxycodeinone, pholocodine and their respective salts is prohibited save by the Government Opium Factory.
1[(2A) Notwithstanding anything contained in sub-rule (2), the Narcotics Commissioner or such other officer as may be authorized by the Central Government may, on and from the commencement of the Narcotic Drugs and Psychotropic Substances (Amendment) Rules, 2004 grant a licence in Form 3 appended to these rules on such terms and conditions as may be specified in the licence to any person or entity for manufacture of morphine, codeine, dionine, thebaine, dihydrocodeinone, dihydrocodeine, acetyldihydrocodeine, acetyldi hydrocodeinone, dihydromorphine, dihydromorphinone, dihydrohydroxy codeinone, pholcodine and their respective salts 2(3[* .. ], ·if the Central Government determines that such licence is necessary in public interest and is in consonance with India's obligations under International treaties, conventions or protocols];]
4 [ (2B) If, in the opinion of the Central Government, the licensee fails to fulfil the purpose for which he is issued a licence under sub-rule (2A) or the terms and conditions of the licence, the Central Government may, after giving the licensee a reasonable opportunity of being heard, cancel the licence.)
(3) The manufacture of medicinal hemp shall be under a licence granted by the State Government on payment of such fees and in accordance with such conditions as may be prescribed by that Government in this behalf.