1.What is an IEM (Industrial Entrepreneur Memorandum)?

Industrial undertakings exempted from the requirements of Industrial Licensing under I (D&R) Act, 1951 are required to file information relating to setting up of industries is known as IEM (Industrial Entrepreneur Memorandum). Confirmation for receipt of such information by this Department is known as 'IEM Acknowledgement'. The Acknowledgement (Ack.) of the IEM which is given on the spot on prima facie evidence of not attracting the provisions of licensing, cannot, therefore, be construed as a clearance or 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. This is filed online by filing details as per 'Part A' of IEM through portal G2B.

2. Whether all industries are required to file IEM?

All industrial undertakings exempted from the requirements of industrial licensing under I (D&R) Act, 1951 and having an investment of Rs 10 Crore or above in the 'manufacturing sector' and Rs. 5 Crore or above in the 'services sector', including Existing Units, New undertaking (NU) and New Article (NA), are required to file an IEM, i.e. "Form IEM" in the prescribed format 'Part A'.

3. What is Part B IEM ?

All Industrial undertakings which had filed IEM are required to report commencement of commercial production and this is also filed on-line on the same portal by way of filing information as per prescribed form 'Part B' of the IEM after commencement of commercial production by the establishment; a copy of the related IEM Ack. is required to be attached while filing this information on the portal. Like 'Part A' Ack. of IEM, the Department also issues Ack. for 'Part B' through its portal followed by delivery of physical copy through post.

4. What is modification/amendment?

No amendment/modifications are made to any IEM filed before 30th June, 1998 except for clerical errors. It has now been decided that lEMs filed in the new form made effective from 1st July, 1998, and notified through Press Note No.4(1998 Series) dated 15.6.98, would be amended/modified as per the request of the entrepreneurs. The amendments would be subject to the terms and conditions spelt out in Press Note No. 17(1997 Series) dated 27th November, 1997 with reference to the Statutes/regulations/ notifications issued by the Central and State Governments issued from time to time.
Applications for IEMs (Part A & Part B) except amendments can be filed online on this portal.
Disclaimer: This information is only for facilitating the applicant for filing of IEM application and may not be used for any other purposes.

5. What is IEM?

Industrial Entrepreneurs Memorandum (IEM) is an application for acknowledgment of unit.
What is the eligibility for getting IEM?
The large scale industry having investment more than Rs. 10 crore in manufacturing sector and more than Rs. 5 crore in service sector are primarily which is outside the purview of the licensing provisions and for the items (s) not exclusively reserved for manufacture by SSI sector have to file an application for Industrial Entrepreneurs Memorandum means IEM.

6. In which case the IEM/ LOI is required?

promoter can file IEM in following categories: 
1. To set up a new industrial undertaking, 
2.To effect substantial expansion of the industrial undertaking, 
3. To manufacture a new article 
4. To carry on business of existing SSI units after graduating into large scale industry.

7. What is the procedure for filling of IEM?

The promoter has to make an application to Govt. of India in prescribed format alongwith Demand Draft of Rs. 1000/- in the name of Secretariat for Industrial Assistance (SIA), New Delhi with six copies. The prescribed format is available on Directorate of Industries website: www.maharashtra.gov.in

8. What will be the further steps after filling IEM?

After filling IEM to Govt. of India. Govt. of India gives acknowledgment receipt to the applicant and informs the Directorate of Industries. After receipt of acknowledgment, applicant can take further initiatives step to set up the unit.

9. What is the role of Directorate of Industries?

Secretariat for Industrial Assistance (SIA), New Delhi circulates office memorandum enclosing one copy of application for the necessary comments from Directorate of Industries. The Directorate of Industries offers the comments to the GOI in respect of location after getting appropriate documents/ certificate from the promoters. Those industrial promoters have obtained IEM and gone into commercial production or implemented the project have to submit PART B with Govt. of India or Directorate of Industries with seven copies for the record.

10. What is IL and is the eligibility for IL?

For setting up industrial units under IDR Act Industrial Development (Regulation) Act 1951 of Govt. of India it is necessary to obtain Industrial license or Letter of Intent.
(1)Activities reserved for public sector
(2) Activities included in Annex-II 
(3) Activities reserved for SSI 

11. Which activities are reserved under public sector?

1. Arms and ammunition and allied items defence equipment defence aircraft and warships. 
2. Atomic energy. 
3. The substances in the schedule to the Notification of the Government of India in the Department of Atomic Energy No. S.O. 212(F), dated 15th March 1995. 
4. Railway Transport.

12. Which activities are covered in Annex II ?

Distillation and brewing of alcoholic drinks. Cigars and Cigarettes of Tobacco and manufactured Tobacco Substitutes. Electronic Aerospace and all types of Defense Equipment. Industrial Explosives including Detonating fuses, Safety fuses, Gun powder, Nitrocellulose and Matches. Hazardous Chemicals. Drugs and Pharmaceuticals ( according to modified Drugs Policy issued in 1994 as amended in 1999).

13. What is the procedure for filling of IL?

The promoter has to make an application to Govt. of India in prescribed format alongwith Demand Draft of Rs. 2500/- in the name of Secretariat for Industrial Assistance (SIA), New Delhi with six copies. The prescribed format is available on Directorate of Industries website: www.maharashtra.gov.in

14. What will be the further steps after filling IL?

Applications received for IL to GOI are put up before Licensing Committee for further approval of License after seeking necessary confirmation from State Govt.

15. What is the role of Directorate of Industries?

Necessary guidance/ co-ordination and reports to GOI.