How to obtain Approval for Factory Building Plan?

In case you are an industrialist, you may be looking to open a new factory. This may be in extension of existing plants, or a new installation altogether. The building plans needs to be approved by the competent authority prior to the construction of the plant. For instance, in the case of Delhi, the Directorate of Industrial Safety and Health, Government of Delhi, is responsible for conducting all procedures related to the process of factory registrations in the state.

What is a Factory Building Plan?

Factory planning is a predictive design of factory structure. It incorporates all the dimensions of an industrial production facility, including the integration and design of the system.

Who is eligible to take approval for Factory Building in India?

An industrialist who employs at least 20 workers or more, with the use of power in the factory/ or, an industrialist who employs at least 40 workers or more, without the use of power, need to take an approval for factory building.

What are some of the legal compliances that need to be observed?

Some of the main approvals that the industrialist needs to take are:

1. Approval of Building Plan
2. Registration of Factory
3. Renewal of License

Documents required for Approval

1. Plan of the factory which has been drawn to a scale of 1:400, 1:800 or 1:1200. It should clearly demarcate all the details about the neighborhood, where all the buildings and sheds shall be placed and so on. Access roads should also be drawn on the plan showing the width and the point of intersection with the building. The alignment should be indicated by pointing out which direction geographic north lies.
2. A building plan that has been drawn to a scale of 1:100 that particularly sets out the type of machinery that shall be installed along with the horse power. Layout in the concerned shed should also be shown in the diagram.
3. Document outlining all aspects of the process.
4. Flow chart of the process.
5. Documents indicating ownership of the land, or the lease deed of the site.
6. In case materials that fall under the purview of the explosives act are being stored or being handled, then clearance needs to be obtained from the explosives authorities.
7. No objection certificate from local authority.
8. No objection certificate from Electrical Safety
9. Memorandum Article
10. List of Directors
11. On-site emergency plan
12. Safety and Health policy

Procedure of Approval

• Visit the online official portal of the Labour Act Management System
• Go to Online Registration and Renewal.
• Provide basic details such as name, date of birth, mobile number, E-mail address, Aadhar etc.
• After registration is duly completed, applicant shall be directed to page of Factory registration.
• Provide enterprise details.
• Fill the pre-establishment Common Application Form, and pay the CAF challan through payment gateway.
• Upload documents for getting approval on the Factory plan.
• Pay the Factory Plan approval pre-scrutiny fee.
• The application shall be forwarded to the authorities who are responsible, for verification of documents.

FAQs

1. What happens in case I have started construction of the factory before registration?
   
   In case the factory is under construction, it will come under the Building and Other Construction Workers Act. Consequently, the license needs to be obtained under the BOCW Act.
2. In case of the above situation, at what point does the Factories Act, 1948 become applicable irreversibly on the factory?
   
   The Building and other Construction Workers Act will continue to be applicable until production commences in the factory. When production begins, it will be the Factories Act, which will come in to force.

Conclusion

As per the Factories Act, 1948, it is mandatory for all factory owners to obtain permission from local authorities before commencing building the plant. The factory license is essentially an approval document provided by the local authorities that allows the industrialist to engage in production. It certifies that the factory plant is in adherence to local building norms, environmental regulations etc.