core sector communique

Filing of Industrial Entrepreneurs Memorandum (IEM)

Under the provisions of Press Note. 9 (1991 Series) dated 2nd August 1991, entrepreneurs are required to submit an Industrial Entrepreneurs Memorandum (IEM) in the prescribed form along with the prescribed fee for undertaking the manufacture of any article exempted from Industrial Licence in terms of this Ministry’s (Department of Industrial Policy & Promotion) notification No. 477 (E) dated 25.7.1991. Such a memorandum was also to be filed by industrial undertakings engaged in non-scheduled industries i.e. those not covered under the 1 (D&R) Act, 1951. On filing the memorandum with the requisite number of copies, entrepreneurs are given an acknowledgement of receipt.

It was clarified by Press Note. No. 22 (1991 Series) dated 24 the December, 1991 that the IEM was intended purely for statistical purposes and to conduct a limited post-facto check to see whether the proposed manufacturing activity requires an industrial licence or not. It was also clarified that the procedure was not in the nature of any registration involving scrutiny of the memorandum, etc.

Press Note No. 17 (1997 Series) dated 28.11.1997 further clarified that acknowledgement of the IEM, which is given on the spot on prima facie evidence of not attracting licensing provisions, cannot be construed as a clearance of approval to carry on an industrial activity contemplated in the IEM unless the provisions of statutes/regulations/notifications etc. issued by the Central or State Governments from time to time or any specific directions or Stay orders issued by the Court/Competent Authority relevant to such an activity, are also fully complied with or in no way contravened, as the case may be. Hence, it was stated that it is the responsibility of the entrepreneur to ensure that the manufacturing activity as specified in the IEM, does not come into conflict with other legal provisions or directions or standing orders. In case of doubt, the entrepreneurs were free to seek clarification/avail assistance of the Secretariat of Industrial Assistance (SIA).

In continuation of the position mentioned in the Press Notes 22 (1991 Series) & 17 (1997 Series), it is reiterated that the IEM is meant purely for statistical purposes and the acknowledgement is issued without any further scrutiny beyond checking that all the requisite columns in the Form are filled in, and the onus for compliance/non-contravention with all the rules regulations, guidelines, orders and directions etc., on the subject lie with the applicant.