New Delhi

  • Delhi is the national capital. It shares its borders with the States of Uttar Pradesh & Haryana; illness Delhi has a total land availability of 1, click 483 sq. kms.
  • New entrepreneurs can set up units in Delhi in approved areas by direct purchase of free-hold industrial plots; or purchase of lease-hold plots with the approval of the lessor which would entail 50% unearned increase or by renting premises.
  • Further, new entrepreneurs can purchase the allotted plot from original allottees subject to fulfillment of some conditions and for taking of premises on rent. The entrepreneurs can take such premises in any confirming Industrial Area for permissible manufacturing activities in that particular industrial area.
  • Delhi is one of the top five states in the area of obtaining infrastructure related utilities.
  • Delhi’s Gross State Domestic Product (GSDP) recorded a Compounded Annual Growth Rate (CAGR) of 7.4% to 4,560 billion in 2015-16 as against Rs 3,433 billion in 2011-12.
  • Given below is a table on FDI inflows in Delhi
State covered 2016-17 (April’16 – December’16) In US$ Millions) %age to total Inflows (in $US)

  • Business Facilitation Council (BFC) comprising members from industrial associations, Industries Department, DSIIDC, DDA, MCD etc, facilitate entrepreneurs in obtaining clearances from various departments/ agencies for setting up of industrial enterprises in the NCT of Delhi.
  • This has been done to solve the problem of multiplicity of organizations to a great extent. Further, the council also acts as a hand holding agency to guide existing units into becoming technologically more advanced, less polluting and moving to knowledge-based or high-technology activity.
  • BFC is headed by Secretary & Commissioner (Industries) and Joint Commissioner of Industries as its Managing Secretary.
  • BFC is in process of developing a Common Application Form (CAF), which fulfills the requirements of all Departments dealing with statutory and non-statutory clearances. In doing so, all the forms for obtaining No Objections/Approvals/Licenses etc. will be made available through the BFC.
  • Senior functionaries of departments concerned such as the Municipal Corporation of Delhi, Delhi Pollution Control Committee, Labour Department and Drug Controller are its nodal officers (listed in Annexure).They are further responsible to ensure that the applications are disposed of without undue delay.
  • The aim of the same is to establish a single point contact with entrepreneurs to get various statutory and non-statutory clearances in a time bound and efficient manner for setting up of industrial enterprises.
  • Associations of industries have been involved as members of the BFC and are part of the decision making process relating to policy matters.
  • Interactions and exchange of ideas in the council have resulted in many changes in the Delhi Master Plan, MPD-2021, with respect to industrial areas and norms.
  • Delhi has its industrial area divided into four zones, i.e., North Zone, South Zone, West Zone and the East Zone, which is further divided into 34 industrial areas either managed by the Delhi Development Authority (DDA) or the Delhi State Industrial and Investment Development Corporation (DSIIDC).
  • Industries Allowed to be set up in Delhi: Setting up of Industries is governed by Master Plan of Delhi 2021. The norms prescribed in the Industrial Areas are as follows:
    Use Groups Permitted Max No. of workers Max. Industrial Power Load
    Plotted development As per need All industries except those prohibited and of Non Polluting and nonhazardous nature As per need As per need
    Flatted Industries All industries except those prohibited and of Non-polluting and nonhazardous nature, excluding industries producing noise/water/vibrations/odour pollution 20 As per need
  • Further, Industries are allowed to be set up in residential areas for house hold industries with maximum 5 workers and maximum power requirement of 5 kw. Maximum 50% area of the dwelling unit can be used for industrial purpose. However, these industries should not cause pollution.

  • Promotion of IT and IT enabled services, Educational services, Business and Financial Services, Media, R&D, Design, and Biotechnology which have been classified as ‘Knowledge Based Industry’.
  • Promotion of Traditional Industries like Khadi, Handloom, and Handicrafts by provision of marketing support.
  • Promotion of non-polluting and clean industries.
  • Promotion of high technology and skilled industries, to keep in-migration of unskilled labour to a minimum.
  • Development of world class infrastructure within planned industrial estates and regularized industrial clusters.
  • Set up ‘Centre of Excellence’ to promote innovation and entrepreneurship in high technology and knowledge based sectors.
  • Promotion of cluster development, where units from similar sector congregate together.
  • Facilitation of business through procedural simplifications and e-governance measures.
  • Promotion of transparent and business friendly environment.
  • Delhi has in place various policies for its priority sectors in the industries which are as follows:


  • Assistance is being provided to the Handloom Sector for promotion, development and modernization through approved plan schemes of the Department and also centrally sponsored Plan Schemes.Financial assistance is also being provided through following schemes:
    • Thrift Fund-cum- Saving Security Scheme & Group Insurance Scheme
    • Bunker BimaYojna, Health Insurance Scheme for Handloom Weavers, etc.


  • With a view to protect the traditional heritage of handicrafts, training to artisans in different crafts is being imparted through Apprenticeship Training Schemes run by the Department under the guidance of Master Crafts persons in different crafts disciplines viz. Hand Embroidery, Metal Engraving, Clay Modeling, Marble Sculpture, Beeds Work, Mithila Painting, Madhubani Painting, Terracotta Pottery etc.

Policy for Leather Industries

  • The Department of Industries has constructed Flatted Factories for Leather Goods in Wazirpur Industrial Area, Delhi.
  • The complex has 127 modules ranging from 200 to 800 sq. The area is allotted to Leather Artisans / Units on rental basis. A Common Facility Centre and a Training Centre for Leather Workers are also functioning in this complex.

  • 15 Common Effluent Treatment Plants (CETP) are to be established by the CETP societies so as to cover 28 approved industrial areas. It would be the responsibility of the societies to construct, operate and maintain these plants and control the quality of effluents discharged by the industries within the prescribed parameters.
  • For this purpose, the Govt. of Delhi has released Rs. 22.5 crores and Central Govt. has released another Rs. 22.5 crores being 50% of the capital cost of all these 15 CEPT’s.
  • The remaining 50% of the capital cost i.e. Rs. 45 crore and subsequent annual operational and maintenance charges are to be borne by these societies. In case these societies so desire they can obtain a loan up to 30% of capital cost from the IDBI or any other financial institution.

  • Main focus is to promote nonpolluting, less labour oriented and Hi-tech industries.
  • Therefore there is focus on promotion of IT and IT enabled services, Educational services, Business and Financial Services, Media, R&D, Design, and Biotechnology which have been classified as ‘Knowledge Based Industry’.
  • State also wants to promote traditional industries like Khadi, Handloom, and Handicrafts by provision of marketing support.
  • The vision is to make Delhi a hub of clean, high-technology & skilled economic activities by 2021 essentially to change industrial profile from low skilled to high tech and high-skilled by adopting the following strategy:
    • Infrastructure Development through better Operation & Management of industrial assets.
    • Facilitating business by simplification & enabling measures.
    • Support skill development & other promotional measures like Knowledge-based Industries in industrial area among others.
    • Decongesting industrial areas through redevelopment schemes.
    • Promoting cluster development of high-technology and skilled industries in new industrial areas through public private partnerships.
    • Discourage polluting industries through higher infrastructure development fee.

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