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Section 4: Amendment of Act 5 of 2000

The Kerala Investment promotion and facilitation(No.2) Act 2018(14 of 2018)State Act of Kerala · Act 14 of 2018

Ir{ the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, f 999· (S of 2000),- · .

·.(I) in the long title, for. the words ~·'requ.ired for setting .up of . industrial undertakings", the words "including renewal thereof required for ..

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setting up and· for expansion, · diversific~tion and modernisation of ~ enterprises" shall be substituted;

(2) ~in the preamble,- . .

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(i) after th~ word "indu.str~~s"- the words "and en.terpris.es"· shall be inserted; . . .

(ii) for the _portion. beginning with "AND WHEREAS, for the ·speedy issue of various ~icences" and ending '"'.ith "industrial ·area level '.' . .

the foll.owing shall be substituted, .namely:- . .

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44AND WHEREAS, for .the speedy issue of variou.s licences, .

.cleara~ces ' and certificate required for setting up and. running" of ente~rises and for is.sue of clearances for expansion, diversific<:ition, . ~ .

modernisation and renewal of licences for« enterprises in the State ·of Kerala and for that purpose it'is necessa!Y to establish Single Window Clearance Boards at the State,. District and Industrial · Area level"; . .

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(3) in section 2,-

(a) in clause (a),-

(i) · after the word "Municipality", the words "any . .

statutory bodies or. service providers" shall be inserted;

(ii) after the word "permits", the words "or consents or renewal th~reof'' shal.l be inserted;

(iii) for the words "industrial undertaking", the word· '•enterprises" shall be substituted;·

(b) after clause (b ), the following clause shall be . inserted, namely:- "(ba) °Cleararices" means various clearances including licences, certificates, permits or consents required under various Central or State enactments and rules made thereunder, and for providing utility services arid renewal. thereof from, time to time, for setting ':IP .and running, expansion, diversification and modernisation of any enterprise in the State of Kerala;";

(c) ~fter · clause (d), the following clause shall .be inserted, ·namely:- H(da) ''Enterprise" means any undertaking or factory· or ,. workshop or workplace or any other establishment or industry engaged in n1anufacturing or processing or providi.ng services or any commercia~ activities includi~g trade or investment in infrastructure;";

(d) clause (j) shall be omitted;

(4) in section 3,-· '.

(a) .in sub-section (1 ), for the words "setting up of Industrial undertakings", the words "'setting up, ruMing, expansion, diversification arid modernisation of enterprises" shall be substituted;

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(b) for sub-section (3 ), the following sub-section shall be substituted, namely:- · 4'(3) The State Board· shall· consi~t of the following members, · namely:-

(a) Chief Secretary to ·the Goven~ment;

(b) The Secretaries to the Government in charge of Industries, Finance, Lab9ur, Local Self Government. Revenue. Taxes, Water Resources, Power. Forests, Environment, Tourisni. Health, lnvestm~nt Promotion and Public Works departments:

(c) Managing Director, Kerala State Industrial Development Corporation Limited:

(d) Director of I11dustries and C~1nmerce, Goverilment of Kerala;

(e) Chairman and Managing Director, Kerala State Electtjcity Board L~n1ited;

Department.":

°( f) Chief Town Planner; .

(g) Chairman. Kcrala St,lte Pollution Control Board;

· (h) Chief Electrical Inspector;

(i) Directot' of Factories and Boilers;

(j) .Direct~r t?f Mining and Geology;

(k) Director General, Fire and Rescue Services · (c) in sub-section -(5). for the words '"at such times" the words "at such intervals not exceeding thirty days" shall be substituted;

· (5) in section 4,- . .

(a) for ·sub-section (3), the following sub~section shall be substituted. nam'eJy:- '"(3} Evc1)' District Single Window Clearapce Board shall consist of the following n1embers, namely:-~ ·

(n) District Collector concerned~

(b) General Manager, District lndustries Centre;

.. · • ' 35 ( c) The President of the Village Panchayat concerned or Chairperson of the Municipality/Mayor of the Corporation concerned in cases where licence is required from local bodies;

(d) The District Officer of the Kerala State Pollution Control Board or any other officer of the said Boan~ nominated by the Chairman, Kerala State Pollution Control Board; .

(e) The District Officer of the Electrical Inspectorate or . • any other officer nominated by the Chief Electrical Inspector;

(t) The Distdct Officer of the To.wn and Country Planning Department or any other officer nominated by the Chief Town • Planner;

(g) District M.edical Officer;

(h) The Deputy Chief Engineer of the Electrical Circle of.

the Kerala State Electricity Board Limited having juri.sdiction over the district; ·

(i) District Officer, Factories and Boilers;

(j) Divisional Officer, Fire and Rescue Services;

(k) Divisional Forest Officer;

(1) District Labour Officer;

. (m) Secretary, Urban Develop111ent Authority or Secretary, District Panchayat;

(n) An Officer of the State Goods and Services Tax Department not below the rank of Deputy Commissioner;

( o) An Officer of the Kerala Water Authority not below the rank. of Executive Engineer nominated by the Managing Director, Kerala Water Authority;

(p) An Officer of the Tourisri1 Department not below the rank of Deputy Director nominated by the Director of Tourism Department;

(q) An Officer of the Public Works Department not below the rank of Executive Engineer nominated by the Secretary, Public Works Department;

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3.6 Geology.";

(r) District Officer of the Department of Mining an~

(b) in sub-section (5), for the words '"at such times'' the words '•at such intervals not exceeding twenty days" shall be substituted;

· (6) in section 5,-

(a) fu sub-section (1), for the words, '•setting up of small scale 'industrial u_ndertaking or industrial undertakings" the words, '"setting up and running of enterprises" shall be substituted;

(b) for sub-section (3), the following s1_.1b-section shall be substituted, namely:- ~'( 3) Every Industrial Area Single Window Clearance ~rd shall consist of the following members, namely:- ·

(a) Principal Secretary to Government .. · Industries Department or his nominee;

· (b) District Collector;

(c) Chief Executive of the Agency owning or managing the industrial area;

Department;

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( d) Designated Authority of industrial area concerned;

( e) District Officer of the S~te Pollution Control Board;

( f) District Officer of the Electrical Inspectorate; ..

(g) District Officer of the Town and Country Planning •

(h) District Medical Officer;

i (i) Deputy Chief Engineer of the Kerala State Electricity Board Limited;

(j) District Officer, Factories .. and Boilers~ ' . .

(k) Divisional Officer, Department of Fire and Rescue · Services;

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(l) Divisional Forest Officer;

.(m) District Labour Officer;

(n) An officer of the State Goods and Service Tax · Department not below the rank of Deputy Commissioner;

(o) {p)

(q) Executive Engineer, Kerala Water Authority;

Secretary. District Tourism Promotion Council;

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General Manager. District Industries Centre;

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(r) Designated authority of Industrial Area concerned and in ·cas~ of private park, G~neral Manager, District Industries Centre . of ·the district concerned.'.';

(c) for sub-section (4), the following .sub-section shall be substituted. namely;_._ .,,..

"(4) District Collector shall be its Chairman and the.

Designated Authority of·tbe industrial area concerned or in the case of private park, General Manager, District Industries Centre of .the dist~ct concerned shall be the Convener of the Industrial Area Board.";

· (7) in section 6.-· (a·) for the words "all ind~strial undertakings being established or proposed to be established", the words "'all enterprises being established or proposed to be established or operating" shall be substituted;

. (b) after the words •'for the construction of the· buil~irig", the words "including expansion, diversification, modernisation and issue of trade licences" shall be inserted;

(8) in section 7,-

(a) in sub-section (1 },-· • (i) for the~ words "an industrial undertaking or small scale industrial undertaking", the word henterprises" shall · be substituted;

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. 38 . ·(ii) after the word '"certificatesH t.he words .. or renewal of licences" ·shall be inserted;

(h) in sub-section (2),~ (i} the word " as" after the word ••decision" shall be omitted;

(ii) in clause (a), f~r the words ••to recommend to the authority concerned. the issue of the licence". the . words "to issue the licence, renewal of licences" shall be substituted;

(c) in sub-section (3), after the words "designated authority of the Industrial Area Board", the words "'if no communication is received by the applicant within thirty da)'S__from the date of submission of applicl:ltion to the . Board, the permiss~n appll~d for ~hall be deemed to have been granted by the Board fo_r ~uch pe~d .. requested for in the application" shall be inserted; · , ·• (9) in 'section 8~- . (a) in sub-section ( 1 ), for the words '"small scale industrial undertaking having capital investment of more than two lakh", the wo.rds "enterprises having capital investment up to fifteen crores'· shall be substituted;

.(b) in sub-section (2),-

(i) for the words "sixty days", the words '"thirty days" shall be substituted;

(ii) the word '~as" after the word '"decision" shall be omitted;

(ii!) in clause (a), for the words Hto recommend to ·the authority concerned the issue of the licence", the· words "to issue the licence,'' shall be substituted;

. (c) in sub-section (3), after the words •'Convener o~ the District Board", the words •"and .the same shall be binding_ on the authority concerned, and if no clearance, licence or certificate or renewals thereof, as the case may be, is issued within thirty days from date of submission ,·.

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39 of. application to the ·Board, the clearance. licence or certificate or renewals thereof applied fo~, shall be deemed to have been iss~ed ·after the expiry of said peri<?d of thirty days" shall be inserted;

( d) for sub-section ( 4 ), the following sub-section shall be substituted •. · namely:- "( 4) Notwithstanding anything contained in any other law for the time being in force, the application for clearance, licence or .

certificate or any renewal thereof, submitted before the District Board ' .

concerned for establishing or running of an enterprise having a capital investment of less than fifteen crore rupees is rejected or granted with conditions, the person aggrieved may file .an appeal before the State Board against su~h qrder of r~fu~al or grant of license with conditions within thirty days from the date of receipt of order from the District ~oard, in the manner prescribed, . and appeal shall be disposed of by the State Board within twenty days from the date of receipt of the appeal.',;

(10) in section 9 ,-

(a) in sub-section ( 1),--,-..

(i) for the words "industrial undenaking other than a sr:nall scale undertak~ng", the words "'<'.nterprise having total investm~nt above fifteen crore rupees" shall be substit.uted;

(ii) aft.er the word '~certificate·s~', the words ••or .renewals thereof'~ shall be inserted;

(b) in sub-section (2),-

(i) for the words ''forty five days", the words, ,.'thirty days" shall be substituted;

(ii) the word '"as" after the word ''decision" shall be omitted;

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(iii) in clause (a). ·for the words hto recommend to the . r concerned authority the issue of licence'·. the words ••to issue licence.

clearance or renewal'. shall be substituted; . . . . , '

(c) in sub-section (3). after the words hConvener of the State Board" . the words hand the same shall ,be binding on the authorities concerned and if no clearance, licence. certificate or renewals thereof: as the case may be. is issued within thirty days from date of submission of application to the Board. the clearance. licence. certifi°cate or renewals thereof applied for shall be deemed to have been issued after the expiry of said period of thirty days" shall be inserted:

(d) after sub-secti~n (3), the followin_g sub~section shall be inserted. namely:- ''( 4) The State Board is also empowered to recomm~nd to -the Govenunent on policy · matters concerning various issues and problems faced . by any entrepreneur in establishing any enterprise or for the development, diversification of modernisation or implementation or oper?tion o~ running of such enterprises in the State and suggest remedial me~sures to ·address such issues and problems in good industrial practice to promote investment opportunity in the State.";

( 11) for section I 0, the following . section shall be substituted, namely:- '" 10. 1: .. suing of clearances, licences, cert~{icates or re11ewt;1l thereo.f.- Notwithstanding an~Jhing contained in any other law for . the time being in force or any other provisions of this Ac~, the State Board, District Boards or Industrial Area Board shall issue the clearance, licence, _certificate or renewal thereof, as the case may be. within thi~y working days from the date of receipt of the application by the Board concerned. and if no clearance, licences, certificates or renewal thereof, as the case may ·be, is issued or the said application is not rejected within the said time limit, ~he clearance, licence, certificate or renewal thereof, as the case may be, shall be deemed to have been issued after the expiry of said period of thirty days.~·;

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(12) in section 11,-

(a) in sub-section (1),- . .

(i) for the words "recommended with modification", the . - .

words "issued with such conditions" shall be substituted; . . .

. (ii) for the words "such refusal or recommendations", the words "issued ·with such conditions1~ shall be substituted; ; - .

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(b) in sub-section (2), for the words "thirty days", the ~ords ~'twenty days11t shall be substituted; . .

( c) after section ·11, following section shall be inserted, namely:- "11 A. Overriding powers of the State Board, District Boards · and Industrial Area Boards.-{l) Notwithstanding anything con~ained in any other law for the time being in force, or other proyisio.ns of the Act.

the State .Board, the District Boards or the Industrial Arca Boards as the case may be, on _receipt of cQmposite application prescribed under rules along with recomrpendations of the departments concerned, shall issue a -composite licence .to the appli~t in_ the form prescribed for establishing and running an enterprise in the State and such composite licence issued ' .

by the respective Board shall be binding on all authorities concerned and shall be valid for a pCrlod of five years from the date of its issue: ·

Provided that if an enterprise is being ·established on a rented or leased premises the validity of the composite licence shaU expire on the CxPiry of the lease or rental period or -five. years whichever is earlier and such authorities shall not. cancel such license without the consent of the respective Board.

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(2) The authorities concerned, shall have the right to conduct inspection of the enterprise periodically, but not exceeding . one year at. a time, and enquire whether the enterprise has violated any provisions of the .,_ Act or rules made thereunder, and. if any violation is noticed by the - · ~ authorities .concerned or the infonnation given in the application for the grant of composite licence is found to be false, the authority concerned may recommend to the Board concerned to cancel the composite licence for non-compliance of any conditions imposed on issue of such licences or violation of any provisions of Act or rules, and on receipt of such recommendation, the Board concerned shall cancel the composite licence a.nd may impose a penalty, as may be prescribed, on such enterprises I after issue of a ·show cause notice a11;d after considering any submission, if any, made by suc·h ~nterprises.

(3) All compo~ite licences issued under this section sha.ll be renewed for a period of five years at a 'time on submission of an application along with the ~rescribed fee, within seven days .from th_e date of receipt of such. application.".

Where this provision sits

ActThe Kerala Investment promotion and facilitation(No.2) Act 2018(14 of 2018)
Section4
Marginal noteAmendment of Act 5 of 2000
JurisdictionState of Kerala
StatusIn force as published by the source

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