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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.

From India, Mumbai
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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.

From India, Madras
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