General Introduction

Setting up an industrial plant is a complex process, requiring careful navigation through various regulatory norms to ensure legal compliance and operational efficiency. In the state of Gujarat, known for its robust industrial infrastructure and business-friendly policies, entrepreneurs and businesses aiming to establish industrial plants need to secure a myriad of pre-establishment approvals. These approvals, ranging from land acquisition and building plan sanctions to environmental clearances, play a critical role in laying a solid foundation for the industrial unit’s legal and operational framework. This article aims to elucidate the key approvals necessary for setting up an industrial plant in Gujarat, providing insights into the purpose and process of each, to assist businesses in understanding and fulfilling these essential prerequisites for a successful establishment.

Key Approvals Required for Establishing an Industrial Plant in Gujarat State

Setting up an industrial plant in the state of Gujarat requires various approvals from different government authorities. These approvals ensure that the industrial activity complies with legal, environmental, and safety standards. Below is a list of pre-establishment approvals required for setting up an industrial plant in Gujarat, along with details on each of them.

1. Registration of Partnership Firm

Businesses operating as a partnership need to register their firm under the Indian Partnership Act, 1932. The registration provides legal recognition to the firm, making it easier to avail loans, open bank accounts, and enter into contracts.

2. Registration of Societies

If the industrial plant is set up under a society or a cooperative, it needs to be registered under the Gujarat Cooperative Societies Act, 1961. This registration is essential for the legal functioning of the society.

3. Land Allotment

Obtaining land for setting up an industrial plant requires approval from the Gujarat Industrial Development Corporation (GIDC) or other relevant authorities. The land allotment process involves submission of project details and necessary documents.

4. Land Application for “Non Agriculture” under Article 65

Any agricultural land that is to be used for industrial purposes must be converted to “Non- Agricultural” land. The landowner needs to apply under Article 65 of the Gujarat Tenancy and Agricultural Lands Act, 1948 for this conversion.

5. Tenancy Act under Article 43

Article 43 of the Gujarat Tenancy and Agricultural Lands Act deals with the rights of tenants and landlords. If the land for the industrial plant is tenanted, approval under this article is required to ensure all rights and obligations are clear and agreed upon.

6. Land Permission under Article 63

This article of the Gujarat Tenancy and Agricultural Lands Act restricts the sale of agricultural land to non-agriculturists. An industrialist who is a non-agriculturist needs to obtain permission under Article 63 to purchase agricultural land.

7. Land Permission under Article 63 AA

Article 63 AA provides certain exemptions from the restrictions under Article 63. If applicable, obtaining permission under this article is necessary.

8. Permission for Bonafide Industrial Purpose under Article 65 B

This permission is required to convert agricultural land for industrial use, asserting that the conversion is for a Bonafide industrial purpose.

9. Property Registration

Once the land is acquired, it needs to be registered under the Registration Act, 1908. This legal process provides clarity on ownership and helps in resolving any future disputes.

10. NOC for Tree Felling

If there are trees on the acquired land, a No Objection Certificate (NOC) is required from the Forest Department to fell them.

11. Tree Transit Permission

After felling the trees, permission is required to transport them, which can be obtained from the Forest Department.

12. Building Plan Approval – UDD & GIDC

The Urban Development Department (UDD) and GIDC must approve the building plans of the industrial plant to ensure they comply with zoning and building regulations.

13. NOC for Fire Department

A NOC from the Fire Department is mandatory to ensure that the industrial plant meets all fire safety standards.

14. Water Connection Approval

Approval is required from the local municipal corporation or water supply board to obtain a water connection for the industrial plant.

15. Electric Connection Approval

The industrial plant needs to obtain an electric connection, which requires approval from the local electricity board or distribution company.

16. PGVCL Electric Connection Approval

If the plant is located in the Paschim Gujarat Vij Company Limited (PGVCL) region, a separate approval is required for the electric connection.

17. Certificate of Electrical Installation by Chief Electrical Inspector

After the electrical installations are complete, a certificate from the Chief Electrical Inspector is required to ensure they meet safety standards.

18. Building and Other Construction Workers Permission

This permission is necessary to ensure that the rights and safety of construction workers at the industrial site are protected.

19. Consent to Establish

Before starting construction, the industrial plant needs to obtain Consent to Establish from the Gujarat Pollution Control Board, ensuring that the plant will comply with environmental standards.

20. Granting of Drug Manufacturing License

If the industrial plant is involved in the manufacturing of drugs, a manufacturing license from the Food and Drug Control Administration is required.

Wrapping Up

Obtaining the necessary approvals before setting up an industrial plant in Gujarat is crucial to ensure legal compliance and smooth operation. Each approval serves a specific purpose, and together they provide a comprehensive framework to regulate industrial activities, ensuring they adhere to legal, environmental, and safety norms. Businesses must navigate through this process diligently, seeking legal and professional advice where necessary, to establish their industrial plant successfully in Gujarat.