Navigating Factory Licenses: Do Small Solar Energy Firms Need One Based on Manpower?

Factory License Requirement for Solar Energy Establishments

1. Does a power-generating establishment through solar energy, having more than 10 manpower and less than 20 manpower, require a Factory license?

Calculating Manpower for Licensing

2. While calculating manpower, should it be calculated as a whole, or should contractual and regular manpower be calculated separately?

Definition of a Factory Under the Factories Act

As per Section 2(k)(iii), generating, transforming, or transmitting power falls under manufacturing and is thereby covered within the definition of a factory. Therefore, the premises are covered by the Factories Act 1948.

All persons found working at the site where the manufacturing process is taking place are to be counted among the workers, whether they are regular employees or contractual staff.