Confused About Licensing for Road Construction: Do I Need a Factory License Too?

I have recently joined the construction industry, which is entrusted with the road construction activity of 45 km under the aegis of NHAI. I have obtained BOCW Registration along with the Contract Labour Licence (Central) as a compliance requirement. However, some of my seniors have also suggested that I should apply for a factory license, which has left me confused. We are also in the process of establishing a batching plant, asphalt plant, WMM plant, fuel pump, and storage of construction material, all connected to the construction activity. Therefore, I kindly seek guidance from senior members on whether I should also pursue a factory license.

Dear Colleague,

The activities of the Asphalt plant, Batching plant, etc., planned by you in addition to the core activity of road construction fall under the manufacturing process and therefore are required to be covered under the Factories Act/Rules.

Regards,
Vinayak Nagarkar
HR Consultant.

Yes, you need to comply with the Factory Act if basic conditions are met regarding power and manpower. Apart from that, you need to comply with many more regulations. Since I do not know the conditions of the site, I am providing a list of all the laws generally applicable to the construction of roads. Please check with your project in charge for compliance.

MOEF Requirement for Road Construction - EIA Report & Environment clearance from MOEF

Environment Protection Act: 1986

The Water (Prevention & Control of Pollution) Act, 1974

The Water (Prevention & Control of Pollution) Cess Act, 1977, including rules from 1978

The Air (Prevention & Control of Pollution) Act, 1984

The Hazardous Waste (Management & Handling) Rules, 2000

Manufacture, Storage & Import of Hazardous Chemicals Rules, 1989

Forest Clearance for Tree Cutting (Local, State, and Center if required)

Local Authority or Gram Panchayat Permission for the Establishment of a Plant

District Industry Center Permission for the Industry

Factory Act: 1948 (Crusher, HMP, RMC & CRMB) Plant Establishment

State Factory Rule (Director of Industrial Safety and Health requirement)

Building and Other Construction Worker Act, 1996

The Mines & Minerals Act, 1957

Mineral Concession Rules, 1960

Land Acquisition Rule-1998

Petroleum Rules, 1976 (Petroleum & Explosive Department)

The Indian Electricity Rules, 1956

Batteries Act, 1989

Minimum Wages Act, 1948

EPF, ESIC, etc.