Licenses Required to Start a Chemical Plant in India [State Wise Guide – 2025 Edition]

🏭 Introduction: Chemical Business Booming in 2025

India is rapidly becoming a global hub for chemical manufacturing and export. The domestic market is projected to reach $300 billion by 2025, creating huge opportunities for entrepreneurs in:

• Basic chemicals

• Specialty chemicals

• Agrochemicals

• APIs and solvents

• Industrial gases

But starting a chemical plant isn’t just about land and machinery—it also involves getting the right licenses and approvals from central and state authorities.

This guide will walk you through the mandatory licenses required, application processes, and state-specific departments so you can start legally and confidently.

✅ Why You Need Legal Licenses for a Chemical Plant

A chemical unit without proper approvals may face:

• ❌ Pollution control shutdowns

• ❌ Seizure by explosives departments (for flammable units)

• ❌ Penalties up to ₹25 lakh

• ❌ Ban on exports or tenders

• ❌ Legal liability in case of accidents

Getting these 10 key licenses and NOCs ensures you can operate, supply, and export safely under Indian law.

📄 List of Licenses Required to Start a Chemical Plant in India

Here are the most essential licenses and permissions:

You may also require Import Export Code (IEC) and GST Registration.

🔍 Step-by-Step Licensing Process (Applicable to All States)

1️⃣ Factory License

Required under The Factories Act, 1948, if you employ 10+ workers and use power.

Documents Needed:

• Land papers or lease agreement

• Layout plan with machinery

• Details of workers and safety officer

• Environmental compliance reports

Apply at: Local Labour Office or Industrial Safety Department

🕒 Time: 30–45 days
💰 Cost: ₹5,000 – ₹20,000 (varies by plant size)

2️⃣ Consent to Establish (CTE) from Pollution Board

You must get this before construction begins.

Issued By: State Pollution Control Board (SPCB)
(PCB differs in each state like GPCB, MPCB, BSPCB, etc.)

Category:

• Green: Non-toxic, simple units (e.g., soap, detergent)

• Orange: Medium-risk (e.g., small solvents, dyes)

• Red: Hazardous/flammable (e.g., pesticides, bulk acids)

🕒 Time: 20–30 days
💰 Cost: ₹15,000 – ₹1 lakh (based on size)

3️⃣ Consent to Operate (CTO)

Apply after construction is complete and trial runs begin.

Documents Needed:

• BMR/BPR copies

• SOPs

• Safety plans

• Water/air emission control reports

🕒 Time: 30–45 days
📅 Validity: 3 to 5 years

4️⃣ PESO License

Required if you store or use flammable substances like:

• Acetone

• Ethanol

• Hydrogen

• LPG, Butane

• Nitric acid, sulfuric acid

• Hexane, toluene, benzene

Issued by: PESO (Petroleum and Explosives Safety Organisation)

Documents:

• Factory plan

• Storage layout

• Fire safety NOC

• Electrical and earthing plan

• Tank/drum safety fittings

🕒 Time: 45–60 days
🔗 Apply at: peso.gov.in

5️⃣ Hazardous Waste Authorization

Under Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016

Issued By: SPCB

Required If You Generate:

• Spent solvents

• ETP sludge

• Used oil

• Distillation residue

Required Documents:

• Waste type

• Disposal method (own or TSDF)

• Manifest system

🕒 Time: 30 days
📅 Validity: 5 years

6️⃣ BIS / ISI Mark Certification

Mandatory for chemicals under QCO (Quality Control Orders).

Examples of Regulated Chemicals:

• Caustic Soda (IS 252)

• Sulfuric Acid (IS 266)

• Sodium Hypochlorite (IS 11673)

Documents:

• Factory audit reports

• Lab testing (internal or NABL lab)

• Production SOPs

• Sample testing by BIS officer

🕒 Time: 45–60 days
🔗 Apply at: manakonline.in

7️⃣ Fire NOC

Apply to local Fire Department for approval of:

• Storage tanks

• Drum areas

• Fire extinguishers

• Hydrant systems

• Emergency exits

🕒 Time: 15–30 days
📍 Apply: District Fire Officer or online state portal

8️⃣ MSME Udyam Registration

Register as a micro, small, or medium enterprise to:

• Get subsidy on interest

• Preferential government tenders

• Tax rebate eligibility

🔗 udyamregistration.gov.in
🕒 Time: 1 day (self-certification)

9️⃣ GST & IEC Registration

Mandatory for:

• Tax compliance

• Importing raw materials

• Exporting finished chemicals

Apply:

• GST at gst.gov.in

• IEC at dgft.gov.in

10️⃣ State Drug Controller License (for APIs)

If you manufacture Active Pharmaceutical Ingredients (API) or pharma intermediates.

Apply to your state’s Drugs Control Department.

🕒 Time: 60–90 days (with site inspection)

📍 State-Wise Licensing Authorities

Here’s where to apply based on your location:

📈 High CPC Potential: Blog Monetization Insight

Search terms like:

• “chemical plant license cost”

• “how to get pollution NOC for factory”

• “PESO license fees India”

• “BIS approval for sulfuric acid”
  …attract CPCs of ₹120–₹250+ because they’re used by:

• Plant setup consultants

• Legal & environmental firms

• Equipment suppliers

• ERP companies

• BIS auditors

🧠 Bonus Tips to Speed Up Licensing

• Use single window clearance portals (e.g., Gujarat’s SWC, Maharashtra’s MAITRI)

• Hire a local factory license consultant

• Submit lab test reports with every application

• Map your unit as Orange Category (if possible) to reduce scrutiny

• Ensure proper site zoning under industrial use

✅ Conclusion: Start Right, Scale Faster

Starting a chemical plant is a high-opportunity business — but also a highly regulated one. Getting the right licenses helps you:

• 🏭 Operate legally

• 🌍 Export to global markets

• 📑 Pass pollution & fire audits

• 💰 Apply for subsidies, tenders, and contracts

This guide gives you a clear path to compliance—whether you’re in Gujarat, Maharashtra, UP, or anywhere else.