'Mere filing of IEM is not a clearance of approval'

The Government today clarified that the onus for compliance of legal provisions lies on entrepreneurs, even in industries which are exempted from licensing.

A press release issued in New Delhi by the Ministry of Commerce and Industry said, mere filing of Industrial Entrepreneurs Memorandum (IEM) even in areas where industrial licensing is not required, cannot be construed as a clearance of approval.

The release stated that it is the responsibility of the entrepreneur to ensure that the manufacturing activity does not come into conflict with other legal provisions or directions or standing orders. A particular industry may not need government licence, but it may require environment or other key clearances. 

AIR correspondent reports that as per the existing policy, entrepreneurs are required to submit an IEM for taking up the manufacture of any article exempted from industrial licence.

On submission of the IEM, the entrepreneur is issued an acknowledgement. The issue of such an acknowledgement would not mean automatic approval of the proposal. Excepting atomic energy, alcoholic drinks, cigars and cigarettes of tobacco and manufactured tobacco substitutes, hazardous chemicals, drugs and pharmaceuticals, all other industries are exempted from the licence.