(1) No contractor to whom this Part applies shall---
(a) supply or engage contract labour in any establishment; or
(b) undertake or execute the work through contract labour,
except under and in accordance with a licence issued to him by the authority referred to in sub-section (1) of section 119 in accordance with the provisions of that section after satisfying that the contractor fulfills such requisite qualifications or criteria as may be prescribed by the Central Government and such licence shall, in addition to the requisite particulars and conditions specified in sub-section (3), specify the number of such contract labour who can be supplied or engaged and the amount of security to be deposited by the contractor.
(2) Where the contractor does not fulfil the requisite qualifications or criteria referred to in sub-section (1), the authority referred to in sub-section (1) of section 119 may issue him a "work specific licence" electronically renewable within such period as may be prescribed by the Central Government to supply or engage the contract labour, or execute the work through contract labour, only for the concerned work order as may be specified in such licence and subject to such conditions as may be specified in such licence.
(3) Subject to the provisions of this Part,---
(a) a licence under sub-section (1) may contain such conditions including, in particular, conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labour as may be prescribed by the appropriate Government;
(b) the licence referred to in sub-section (1) or sub-section (2), shall be obtained from, if for such establishment the appropriate Government is---
(i) the Central Government, the authority referred to in sub-section (1) of section 119 designated by that Government; and
(ii) the State Government, the authority referred to in sub-section (1) of section 119 designated by that Government:
Provided that where the contractor is desirous of obtaining licence for supplying or engaging contract labour or undertaking or executing the contract works under sub-section (1) or sub-section (2) in more than one States or for the whole of India, then, he may obtain the licence from the authority referred to in sub-section (1) of section 119 designated by the Central Government for such purpose and the provisions of that section shall apply:
Provided further that before issuing such licence the authority referred to in the first proviso shall consult the concerned State or States authorities designated under sub-section (1) of section 119, electronically before issuing licence for the establishments for which the appropriate Government is the State Government.