🏭 Industrial Compliance

Industrial Compliance Requirements for Manufacturing Businesses

Complete guide to Factory Act, environmental regulations, safety standards, pollution control, and MSME compliance for industrial operations in India. Stay legally protected.

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Key Indian Industrial Regulations

Essential compliance requirements for manufacturing and industrial establishments

Factories Act 1948

The primary legislation regulating health, safety, welfare, and working conditions in factories across India.

  • Factory registration & licensing
  • Health & safety provisions
  • Working hours & overtime
  • Annual leave with wages
  • Special provisions for women workers

Penalties

Imprisonment up to 2 years + fine up to ₹1 lakh for serious violations

Environmental Regulations

Water (Prevention & Control of Pollution) Act 1974 and Air (Prevention & Control of Pollution) Act 1981.

  • Consent to Establish (CTE)
  • Consent to Operate (CTO)
  • Environmental Clearance (EC)
  • Hazardous Waste Management
  • Pollution Control Board Compliance

Penalties

Up to ₹1 crore + imprisonment up to 5 years for environmental violations

Safety & Health Regulations

Multiple regulations governing workplace safety, hazardous operations, and employee welfare.

  • Building & Other Construction Workers Act
  • Explosives Act 1884
  • Petroleum Act 1934
  • Manufacture, Storage & Import of Hazardous Chemical Rules
  • Indian Boilers Act 1923

Penalties

Imprisonment up to 3 months + fine up to ₹10,000 for safety violations

Industry-Specific Compliance Requirements

Additional regulations based on your manufacturing sector and operations

  • Manufacture, Storage & Import of Hazardous Chemical Rules, 1989
  • Chemical Accidents (Emergency Planning, Preparedness & Response) Rules, 1996
  • Hazardous Waste (Management, Handling & Transboundary Movement) Rules, 2016
  • Public Liability Insurance Act, 1991
  • Chemical Weapons Convention Act, 2000
  • Bureau of Indian Standards for chemicals
  • Pollution control board specific regulations
  • Fire safety and explosion prevention measures

Industrial Compliance Checklist

Essential compliance requirements for all manufacturing establishments

Factory Registration & Licensing

Mandatory registrations and licenses for factory operations

  • Factory License: Under Factories Act 1948 Timeline: 30-45 days | Fee: Based on horsepower/workers
  • MSME/Udyam Registration: For small and medium enterprises Free registration | Benefits: Subsidies, priority lending
  • Trade License: Municipal corporation license Annual renewal | Fee: ₹5,000 - ₹50,000 based on size
  • Fire Safety License: From fire department Annual inspection | NOC required for factory license

Environmental Compliance

Pollution control and environmental protection requirements

  • CTE & CTO: Consent to Establish & Operate State Pollution Control Board | Validity: 5-15 years
  • Environmental Clearance: For specified industries Mandatory for large projects | Timeline: 6-12 months
  • Hazardous Waste Authorization: For handling hazardous materials SPCB authorization | Annual returns filing
  • CGWA NOC: Groundwater extraction permission Central Ground Water Authority | Required for water extraction

Industrial Safety Standards

Essential safety requirements for manufacturing facilities

Fire Safety Requirements

Mandatory fire safety measures for industrial establishments

  • Fire prevention and protection systems
  • Emergency evacuation plans
  • Fire extinguisher placement and maintenance
  • Fire alarm and detection systems
  • Fire safety training for employees
  • Regular fire drills and mock exercises

Requirement

Annual fire safety certificate from fire department mandatory

Workplace Safety

Employee health and safety protection measures

  • Personal protective equipment (PPE)
  • Machine guarding and safety devices
  • First aid facilities and trained personnel
  • Ventilation and temperature control
  • Noise and vibration control measures
  • Ergonomic workplace design

Note

Safety committee mandatory for factories with 250+ workers

Industrial Compliance FAQs

Common questions about industrial compliance requirements answered by our experts

When is factory license required under the Factories Act?

Factory license is mandatory under Section 6 of the Factories Act, 1948 when:

  • 10 or more workers are employed with power, OR
  • 20 or more workers are employed without power
  • The premises is used for manufacturing process
  • Any industry listed in the First Schedule (hazardous industries)

Exemptions: Certain categories are exempted including IT/ITES, educational institutions, and some service industries.

Penalty: Operating without valid factory license can lead to imprisonment up to 2 years or fine up to ₹1 lakh, or both.

What are the environmental compliance requirements for new factories?

Environmental compliance involves multiple steps:

  1. Consent to Establish (CTE): Required before construction begins. Obtained from State Pollution Control Board (SPCB).
  2. Environmental Clearance (EC): Mandatory for projects listed in EIA Notification 2006. Based on project size and location.
  3. Consent to Operate (CTO): Required before starting operations. Issued by SPCB after compliance verification.
  4. Authorization: For hazardous waste management under Hazardous Waste Rules.
  5. CGWA NOC: For groundwater extraction from Central Ground Water Authority.

Timeline: CTE: 30-60 days, EC: 90-180 days, CTO: 45-90 days.

What are the benefits of MSME/Udyam registration?

MSME/Udyam registration provides significant benefits:

  • Credit Support: Priority sector lending, collateral-free loans up to ₹2 crore
  • Subsidies: Interest subsidy, credit guarantee scheme, technology upgradation
  • Government Tenders: Reservation in government procurement (25% of total)
  • Tax Benefits: Various state and central tax incentives
  • Reimbursement: ISO certification reimbursement, patent registration support
  • Market Access: Participation in international trade fairs with government support
  • Regulatory Relief: Simplified compliance procedures, longer payment terms

Eligibility: Investment up to ₹50 crore and turnover up to ₹250 crore.

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