The Government of Jammu and Kashmir, through its Labour and Employment Department, has officially issued S.O. 271, amending Rule 5 of the Jammu and Kashmir Factory Rules, 1972.
The amendment, made under the powers conferred by Section 112 of the Factories Act, 1948, follows the publication of draft notification S.O. 90 dated April 11, 2025. No objections or suggestions were received during the 45-day consultation period, leading to its formal adoption.
Key Highlights of the Amendment
- License Validity Extended to 5 Years
Every factory license, whether newly granted or renewed, will now remain valid for five years across all categories — Red, Orange, Green, and White. - Optional Annual Renewal with Higher Fee
Occupiers opting for annual renewal instead of the five-year term will pay 10% higher fees than the base rates provided in Schedule “A”. - Revised Licensing Fee Structure Introduced
The amendment also substitutes Schedule “A” and “B”, introducing an updated scale of fees for factory licenses in Jammu & Kashmir based on installed capacity and number of employees.
Updated Licensing Fee Structure (Schedule-A & B)
Schedule-A: Fees Based on Installed Capacity and Employment
| Installed Capacity (HP) | Up to 50 Employees | Up to 100 | Up to 250 | Up to 500 |
| Up to 10 HP | ₹ 900 | ₹ 1400 | ₹ 1900 | ₹ 2850 |
| Up to 50 HP | ₹ 1850 | ₹ 2650 | ₹ 3150 | ₹ 4500 |
| Up to 100 HP | ₹ 3000 | ₹ 4350 | ₹ 5150 | ₹ 6500 |
| Up to 500 HP | ₹ 5150 | ₹ 7000 | ₹ 7850 | ₹ 10500 |
| Above 1000 HP | ₹10350–₹36650 | — | — | — |
Schedule-B: For Electricity Generating/Transforming/Transmitting Factories
| Installed Capacity (KW) | Fees Payable (INR) |
| Up to 1,000 KW (1 MW) | ₹ 7,500 |
| 1–5 MW | ₹ 15,000 |
| 5–10 MW | ₹ 25,000 |
| 10–50 MW | ₹ 42,000 |
| 50–60 MW | ₹ 50,000 |
| 60–80 MW | ₹ 58,000 |
| 80–100 MW | ₹ 68,000 |
| 100–150 MW | ₹ 85,000 |
| 150–200 MW | ₹ 1,00,000 |
| 200–300 MW | ₹ 1,20,000 |
| 300–500 MW | ₹ 1,35,000 |
| 500–1000 MW | ₹ 2,00,000 |
| 1000–1500 MW | ₹ 2,75,000 |
| 1500–2000 MW | ₹ 3,25,000 |
| Above 2000 MW | ₹ 3,25,000 |
Purpose of the Amendment
The revision aims to simplify licensing procedures, ensure regulatory compliance, and reduce bureaucratic delays by extending the validity period. It also aligns J&K’s factory rules with modern industrial practices and the ease-of-doing-business reforms initiated across India.
Conclusion
With this amendment, factory owners in Jammu and Kashmir can now operate with longer license validity and updated, transparent fee structures. This move is expected to streamline industrial regulation and encourage investment in the UT’s manufacturing sector.