Industrial Entrepreneur Memorandum (IEM)

(IEM) Industrial Entrepreneur Memorandum

1. What is an IEM?

Industrial Entrepreneurs Memorandum (IEM) is an undertaking required to acknowledge the commencement of commercial production by filling the IEM application

2. What is the eligibility for getting IEM?

The large-scale industry having investment more than Rs. 50 crores in manufacturing sector and more than Rs. 5 crores in service sector are primarily which is outside the purview of the licensing provisions and for the items (s) not exclusively reserved for manufacture by SSI sector which has to file an application for Industrial Entrepreneurs Memorandum means IEM.

3. In which case thus the IEM is required?

The promoter can file IEM in the following categories:

• To set up a new industrial undertaking,
• To effect substantial expansion of an industrial undertaking,
• To manufacture a new article,
• To carry on the business of existing SSI units after graduating into a large-scale industry


4. What is the procedure for filling of IEM?

The promoter has to make an Application in prescribed format along with Fee(Demand Draft).



5. What will be the steps after filling IEM?

After Filing IEM Application ,Receipt of Acknowledgement is issued ,It is informed to Director of Industries, then Applicant can move further to Set Up the Unit.



6. What is the main role of Directorate of Industries?

Secretariat for Industrial Assistance (SIA), New Delhi circulates office memorandum enclosing one copy of an application for the necessary comments from Directorate of Industries. The Directorate of Industries mostly offers the comments to the GOI in respect of the location after getting appropriate documents/ certificate from the promoters. Those industrial promoters have obtained IEM and gone into commercial production or implemented the project have to submit PART B with GOI or Directorate of Industries with seven copies for the record.



7. What is an IL and is the eligibility for IL?

To Setup industrial units under IDR Act Industrial Development (Regulation) Act 1951 of GOI it is necessary to obtain an Industrial license or Letter of Intent.

1. Activities reserved for public sector
2. Activities included in Annex-II
3. Activities reserved for SSI


8. Which activities are reserved under the public sector?
1. Arms and ammunition and allied items defense equipment defense aircraft and warships
2. Atomic energy.
3. The substances in the schedule to the Notification of the GOI in the Department of Atomic Energy No. S.O. 212(F), dated 15th March 1995.
4. Railway Transport.


9. What is the procedure for filling of the IL?

The promoter has to make an application to GOI in prescribed format along with Demand Draft



10. What will be the further steps after filling an IL?

Applications received for IL to GOI are put up before the Licensing Committee for further approval of License after seeking necessary confirmation from State Govt.



11. What is the role of the Directorate of Industries?

Necessary guidance/ coordination and reports to Govt. of India.