Section12: Approval required to increase capital, capacity and add or change objectives of industry

1) If any industry intends to increase its existing capital or capacity or add, change or alter its objectives, it shall make an application in such form as prescribed to the industry registration body for approval thereof.

2) If the contents appear to be reasonable upon examining an application received under subsection (1), the industry registration body shall fulfil the procedures as prescribed and give approval to increase the capital, capacity of, add, change or alter the objectives of such industry within ninety days. If the classification of the industry changes by reason of such increase in capital or capacity or addition, change or alteration of objectives, the concerned industry shall update records thereof and have its entry made in the industry registration certificate.

3) Notwithstanding anything contained in subsections (1) and (2), approval of the industry registration body is not required for a micro-enterprise or a cottage and small industry with a fixed capital not exceeding ten million rupees, which does not require permission, to increase its capital or capacity.

Provided that if such increase in capital or capacity or addition or change or alteration of objectives requires environmental impact assessment or initial environmental examination, a report thereof shall be approved under the prevailing law.

4) If an industry enhances managerial capacity and makes production exceed the projection without altering the previously installed machinery and equipment, it is not considered to be an increase in capacity.