MCD integrates factory license fee with property tax portal, sets 5% fee for industrial units

To enhance ease of doing business, the Municipal Corporation of Delhi (MCD) integrated the factory license fee module with its property tax portal on Wednesday. Under the new system, factory owners will now pay a standardised 5% of their annual property tax as a licensing fee, replacing the earlier model that involved varying charges based on power load and workforce size.

“This integration is a step to end the outdated ‘Inspector Raj’ and make industrial operations more business-friendly,” said Mayor Raja Iqbal Singh. “Industries will no longer have to go through redundant procedures or inspections. The single portal will enhance transparency and efficiency,” he added.

With over 30,000 active factory licenses currently, the MCD expects this streamlined system to increase compliance and boost revenue collection. A MCD spokesperson explained, “Earlier, factory license fees were calculated based on horsepower and number of employees, with periodic hikes every three years. After reviewing revenue trends, we decided to adopt a flat 5% fee model linked to property tax.”

Previously, industrial units were required to file separate applications and pay different fees for property tax and factory licenses. With the new unified portal, both payments can be made simultaneously, and a deemed factory license will be auto-generated eliminating the need for physical inspections by MCD officials. The civic body also announced that home-based and MSME units located in in re-development or confirming areas will be issued deemed licenses based on valid documentation, such as MSME registration or allotment letters issued by GNCTD/DSIIDC.