Introduction
One such business area where there is a lot of potential today is that of manufacture of isobutanol, where demand is rising due to its use in biofuels and solvents, and people want to take advantage of the opportunity. However, before you start laying foundations for your plant, one needs to be aware that an isobutanol plant manufacturing license in India doesn't comprise one paper that one can procure from the concerned authorities. This article tells you what exactly you need.
Here's the deal: you will require a factory license, pollution control consent, fire safety NOC, and if your volume of production is high, also a PESO license since isobutanol is inflammable. You need to budget for an installation cost that varies greatly according to capacity. The complete process will take around a period of 6 months.
Advantages of Isobutanol (Why Should Investors Be Interested?)
Isobutanol has a cleaner burn when used in blended fuel, vaporizes less easily, and acts as an excellent industrial solvent in paints and coatings. This is precisely why there is any regulation on the matter since this compound is flammable and needs to be handled with care, and that’s why getting licensed is not just paperwork but a safety filter.
Eligibility for Isobutanol Manufacturing Plant License
In general, you will need to be a registered organization (proprietorship, partnership, LLP, company), own or have on lease industrial land, and have the right zoning of your plot for either chemicals or heavy manufacturing. The foreign investments can be made under automatic routes, barring the sectors that might need otherwise.
Documents Needed for Isobutanol Manufacturing Plant License
Be ready to provide:
- Incorporation certificate at allotted by MCA,
- Documents of proof for land ownership/land lease,
- Plot plan, project report,
- Environmental impact assessment, if capacity is above a certain threshold value,
- Fire safety certificate, and
- Address/identity documents of directors/partners.
Process Involved in Detail for Isobutanol Manufacturing Plant License
- Register your business entity and build the facility.
- Get No Objection Certificate from the State Pollution Control Board.
- Get the factory registration under the Factories Act relevant to your industry.
- Make arrangements for fire and safety clearances.
- Obtain license from PESO in case there are any flammable material at a threshold quantity in your inventory.
- Register yourself for GST and other taxes before production starts.
Government Department
Process of clearances begin from the State Pollution Control Board, Directorate of Industrial Safety and Health, local fire department and the Petroleum and Explosives Safety Organisation (PESO) in case of handling of flammable material.
Time Taken for Isobutanol Manufacturing Plant License
Taking into consideration the above aspects, one can very well predict that the duration of time from applying to receipt of permissions would be somewhere around 150 to 180 days.
Costs Involved for Isobutanol Manufacturing Plant License
Fees for registrations vary according to states and the capacity of the plants. Factory registration costs might vary from a few thousand rupees to more than a lakh rupee.
Continuous Compliance Requirements
The process of getting license itself is very easy but the hard part is to maintain the license continuously. There must be proper environmental audit of the plant at periodical intervals. Effluents and emissions monitoring record, fire drill and safety drill must be conducted regularly and flammable material storage within prescribed limit. Renewal of licenses and pollution consent cannot happen automatically as in failure of filing the documents in specified windows, you become a non-compliant person. Compliance with labor laws, workers' safety training records and periodic safety audits (hazardous chemical installations) are some other requirements to take care of continuously
Penalties for Non-Compliance
The regulators take seriously the flammability of isobutanol, and that affects the enforcement A failure to run an isobutanol factory without proper consents could lead to a closure directive by Pollution Control Board, penalties under the Environment (Protection) Act and suspension of your license till inspection is conducted. Repeatedly failing or breaching the requirements relating to safety of workers could lead to a criminal charge against your directors and occupiers under the Factories Act. Failure to comply with the rules on storage of hazardous material as laid down by the PESO entails some special penalties. Failure to renew your license during the required time period could invite a show cause notice, and hence, compliance would be easier than remedial.
Why CorpZo?
We have helped manufacturers go through this legal maze before, coordinating with all authorities involved and thereby saving you from approaching five departments separately.
FAQs - CorpZo
Q: Am I allowed to start construction prior to getting all approvals?
A: You can start once you get the NOC and approval for the factory building plans, but manufacture needs all approvals.
Q: Does PESO license need to be compulsorily taken?
A: Yes, only when the storage quantity of flammable liquids goes beyond the threshold.
Get Started
Planning to set up your isobutanol facility? Contact our regulation experts at CorpZo even before you lease the land.