Promoters may need state nod for factory expansion
Factory owners with expansion plans may now be required to get the state govt’s permission before going in for physical expansion of existing businesses.
By Rajat Guha, TNN |
NEW DELHI: Factory owners with expansion plans have a regulatory hurdle ahead. The government is all set to make it mandatory for them to get the state government’s permission before going in for physical expansion of existing businesses. Under the Factories Act, at present no permission is required from the state government for expansion of a factory if it is within certain specified limits. The ministry of labour is bringing amendments in the Factories Act of 1948 to make it mandatory for the owner to obtain the state government’s permission prior to any expansion plan, however small.
“It is possible that such expansion may involve hazards to the safety of workers as well as the people in vicinity of the factory. The ministry wants to amend Section VI of the Factories Act in order to vet all expansion plans,” an official said.
The amended Factories Act, which has been finalised by the labour ministry, would soon be sent to the Cabinet for approval.
The government is of the view that extension of space as well as replacement of plant and machinery should not reduce the minimum clear space required for safe working around the plant or machinery or pose a danger to workers or people around the space. The government, through the proposed amendments in the Factories Act, also wants to minimise adverse effects on environmental conditions from steam emissions, heat, dust and fumes which are also injurious to heath.
The new Factories Act also proposes to ban smoking within factory premises and disallow people below 18 years to work near any machinery in motion.
“It is possible that such expansion may involve hazards to the safety of workers as well as the people in vicinity of the factory. The ministry wants to amend Section VI of the Factories Act in order to vet all expansion plans,” an official said.
The amended Factories Act, which has been finalised by the labour ministry, would soon be sent to the Cabinet for approval.
The government is of the view that extension of space as well as replacement of plant and machinery should not reduce the minimum clear space required for safe working around the plant or machinery or pose a danger to workers or people around the space. The government, through the proposed amendments in the Factories Act, also wants to minimise adverse effects on environmental conditions from steam emissions, heat, dust and fumes which are also injurious to heath.
The new Factories Act also proposes to ban smoking within factory premises and disallow people below 18 years to work near any machinery in motion.
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