Fee Relaxations and New Definitions: A Game-Changer for Women Entrepreneurs in Ammonium Nitrate Industry

On 11th December 2024, the Ministry of Commerce and Industry, under the Department for Promotion of Industry and Internal Trade, published a notification regarding proposed amendments to the Ammonium Nitrate Rules, 2012. These amendments aim to introduce new provisions and provide fee relaxations for Micro & Small Enterprises (MSEs), Micro & Small Startups, and Women Entrepreneurs involved in the manufacturing, storage, transport, and trade of ammonium nitrate.

The new Rules are called Ammonium Nitrate (Amendment) Rules, 2024.

Key Highlights of the Draft Amendments:

Introduction of New Definitions:

The draft rules propose the insertion of new definitions in Rule 2 of the Ammonium Nitrate Rules, 2012:

  • Micro and Small Enterprises (MSEs) are defined according to the Micro, Small, and Medium Enterprises Development Act, 2006.
  • Micro & Small Startup refers to entities registered with the Department for Promotion of Industry and Internal Trade and defined under the Startup India initiative (G.S.R. 127(E) dated 19th February, 2019).
  • Women Entrepreneur refers to an enterprise that is owned and controlled by a woman, with at least 26% financial interest in the capital of the business.

Fee Relaxations: The amendments introduce discounted fees for Micro & Small Enterprises, Micro & Small Startups, and Women Entrepreneurs. Some examples include:

  • Scrutiny fee for prior approval:
    • General: ₹1000
    • MSE/Startup: ₹500
    • Women Entrepreneur: ₹200
  • License for manufacturing and selling ammonium nitrate:
    • General: ₹20,000 per year
    • MSE/Startup: ₹10,000 per year
    • Women Entrepreneur: ₹4,000 per year
  • License for importing ammonium nitrate:
    • General: ₹5,000
    • MSE/Startup: ₹2,500
    • Women Entrepreneur: ₹1,000

Documentary Requirements for Fee Relaxation: To avail fee relaxation, applicants must provide documentary evidence:

  • For Micro and Small Enterprises, a certificate issued by the Ministry of Micro, Small, and Medium Enterprises.
  • For Micro and Small Startups, proof of registration with the Department for Promotion of Industry and Internal Trade.
  • For Women Entrepreneurs, proof of ownership or directorship in the firm.

Fee Relaxation for Women-Owned MSEs and Startups: If the Micro and Small Enterprise or Startup is owned and controlled by a woman, the lower of the two applicable fees (MSE/Startup or Women Entrepreneur) will apply.

Penalties for False Information: If the submitted information is found to be false or misleading at any stage, the approval or license will be liable to cancellation.

    Public Consultation Process:

    The draft of these amended rules will be open for public feedback. Individuals and organizations affected by these changes have 30 days from the publication of this notification to submit their objections or suggestions. Comments can be sent to the Director (Explosives) at the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Udyog Bhavan, New Delhi, or by email to expl-dipp@nic.in.

    Next Steps:

    After the 30-day consultation period, the Ministry will consider the feedback received and proceed with the final publication of the Ammonium Nitrate (Amendment) Rules, 2024.

    This proposed amendment is part of a broader effort by the Indian government to encourage the growth of Micro and Small Enterprises, Startups, and Women Entrepreneurs in industries that involve high-risk materials like ammonium nitrate, while ensuring robust regulatory oversight.

    Conclusion: These proposed amendments mark a significant step toward creating a more inclusive and supportive business environment for Micro & Small Enterprises, Startups, and Women Entrepreneurs in India, particularly those involved in industries regulated under the Explosives Act, 1884.

    RECENT UPDATES