DPIIT Introduces Regulatory Relaxations to Strengthen Industrial Supply Chains in India
DPIIT rolls out multi-sectoral regulatory relaxations to bolster industrial supply chains
The Economic TimesImage: The Economic Times
The Department for Promotion of Industry and Internal Trade (DPIIT) in India has launched a series of regulatory relaxations aimed at ensuring the steady supply of fuel, gas, and raw materials across various industries. Key measures include customs duty waivers, expedited licensing, and temporary storage relaxations to bolster logistics and production.
- 01DPIIT has implemented regulatory measures to ensure uninterrupted supply chains.
- 02Customs duty on critical inputs for the leather and paint industries has been reduced to zero.
- 03Turnaround time for gas station applications has been cut to under 10 days.
- 04Temporary storage relaxations for kerosene and ammonium nitrate have been introduced.
- 05Long-term measures include new guidelines for gas supply in remote areas.
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The Department for Promotion of Industry and Internal Trade (DPIIT) in India has rolled out a comprehensive set of regulatory relaxations to enhance the industrial supply chain, focusing on the uninterrupted supply of fuel, gas, and essential raw materials. Nidhi Kesarwani, Joint Secretary of DPIIT, highlighted that the government has prioritized the expansion of gas infrastructure, processing 467 applications for Compressed Natural Gas (CNG) and Compressed Biogas (CBG) stations since late March. The turnaround time for these applications has been reduced to less than 10 days, resulting in 157 final licenses and 38 prior approvals for new dispensing units. Additionally, temporary storage relaxations for kerosene have been granted, allowing for the storage of up to 2,500 liters of superior kerosene oil and 5,000 liters of Public Distribution System (PDS) kerosene to ensure last-mile delivery. The government has also imposed a ban on ammonium nitrate exports to secure domestic availability. In the manufacturing sector, advisories have been issued for high-capacity boilers, granting three-month extensions on certificates, while the Quality Control Order timelines for induction cooktops have been extended. Significant fiscal interventions include reducing Basic Customs Duty (BCD) on critical inputs for the leather, footwear, and paint industries to zero, as well as increasing the allocation of industrial LPG in the paint sector to 70% of pre-March consumption levels. Long-term measures are being introduced to facilitate gas supply in remote areas, ensuring a more resilient industrial landscape.
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These regulatory relaxations are expected to stabilize supply chains, ensuring that industries have the necessary resources to maintain production levels, which could lead to job security and economic stability.
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