Small Factory Owners: Is a Fire Hydrant System Mandatory for Your License?

Dear HR Fraternity,

We are a small-scale industry in Haryana registered in MSME, having a manufacturing facility with 10 staff in production and 10-15 workers through Contractual Manpower. Our manufacturing setup is located in a 3000 sq ft area of rented property without a hydrant system. Initially, we overlooked the requirement for a hydrant system. However, the Fire officer informed us that to obtain an NOC, we must have a hydrant system in place.

Query about Factory License and Fire NOC

Now, my query is:

a) Is it mandatory to have a factory license? (As it necessitates a FIRE NOC, and installing a hydrant system costs around 3-4 Lac)

b) If a factory license is required and we fail to obtain one, what will be the legal implications for the factory owner?

Your response will be highly appreciated.

Definition as per the Act

i) Where ten or more workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried out with the aid of power, or is ordinarily carried out in such a manner, or

ii) Where twenty or more workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried out without the aid of power, or is ordinarily carried out in such a manner.

As you have more than 20 employees on the payroll, you should obtain a license under the Factories Act.