CHAPTER VII

Licences

154. Application for licence.—

(1) A person desiring to obtain or renew or amend a licence under these rules shall submit an
application in writing in the authority empowered to grant, renew or amend such a licence.
(2) The application shall be signed by the licensee or applicant himself, as the case may be, or by
a person authorized by him in writing in this behalf, and shall, in the latter case, be accompanied
by such authorisation.
(3) Every application for grant of a licence to manufacture explosive shall consist of following:
(a) an application in Form 3;
(b) plans of the proposed buildings and the site drawn to scale. These site plan should show full
approach road net work to the factory/or premises;
(c) a description of situation, character and construction of all mounds, buildings (production, non-
production, stores, administrative, etc.) and safety distances observed by each building;
(d) description of process/work to be carried out in each building or part,thereof;
(e) a description of plant and equipment and its location provided in each building or part thereof;
(f) a description of explosives and ingredients thereof, whether wholly or partially mixed that will
be present in any building or machine at any one time;
(g) a description of maximum number of persons to be employed in each building;
(h) a description of any special constructions which the applicant may propose by reason of
special circumstances, arising from the locations, situation or construction of any building or
works, or the nature of process or otherwise;
(i) prescribed scrutiny fee;
(j) in case where applications is made in the name of a company, the names and addresses of
Directors and partners and the name, address correspondence in respect of licence applied for.
Any change in such names and addresses should be immediately communicated to the licensing
authority.
(4) Every application for grant of a licence in Form 21, From 22 or From 24 to possess explosives
for sale or use shall consist of the following:
(a) an application in Form 4 or Form 5, as the case may be ;
(b) plans drawn to scale of the proposed premises and of the site on which such premises are
situated. The site plan should clearly show the complete approach road net work, nearby land
marks, distances from nearby protected works;
(c) drawings of the premises and the mounds, if provided;
(d) in case where the application is made in the name of the company, the name and address of
the Directors and partners and the name, address and specimen signatures of person authorized
to sign correspondence in respect of licence applied for. Any change in such names and
addresses should be immediately communicated to the licensing authority.
(5) Application for grant of a licence in Form 23 shall consist of the following:
(a) an application in Form 5 for licence as per preamble (b) and (c) or Form 6 for licence as per
preamble (a) of the licence Form 23, as the case may be; (b) plans showing site, location and
construction details of the premises. The site plan should clearly show complete approach road
one work surrounding areas, landmarks and safety distances observed.
(6) Application for grant of a licence in Form 25 for a Road Van shall consist of the following:
(a) an application in Form 7;
(b) drawings of the Road Van showing the complete details of construction and other
ancillary equipment provided;
(c) prescribed scrutiny fee.
(7) An application for grant of a licence in Form 26, From 27, Form 28 or Form 29 shall consist of
the following:
(a) an application in Form 8, Form 10, Form 11 or Form 12 as the case may be;
(b) prescribed scrutiny fee.
(8) An application for grant of a Shot-Firer’s Permit shall consist of following:
(a) an application in Form 9; and
(b) prescribed scrutiny fee.

155. Grant of licence.—

(1) (a) Licence may be granted by the authorities specified in column (4) of Schedule IV in the
Form specified in column (2) for the purpose specified in column (3) thereof on payment of fees
specified under these rules: Provided that no new licence in Forms 20,21 and 22 shall be granted
unless the provisions of rule 156 have been complied with: Provided further that the licensing
authority may waive all or any of the provisions of rule 156, if—
(i) the premises proposed to be licensed is within the factory licensed under these rules for
manufacture of explosives and the required safety distances are under the control of applicant;
(ii) the premises for which the new licence is required are situated within the same survey
number, in which the applicant has an existing premises and a current valid licence for the same
and the required safety distances are available within the safety distance of such existing
premises.
(b) No licence for manufacture of explosives other than liquid oxygen explosives shall be granted
or renewed to a person for his factory not registered under the Factories Act, 1948 (63 of 1948)
unless he executes a bond in Form 19 in favour of the President of India indemnifying person
injured or dependants of deceased workers in the event of an accident in the factory [and amount
of RS 10,000 for factories manufacturing up to 15 kg of gunpowder or fireworks at any one time],
an amount of Rs.25, 000 for factories manufacturing up to 200 kgs. of gunpowder or fire works at
any one time and Rs.50,000 in every other case:
(2) (a) Licensing authority may grant a license for the period deemed necessary but not
exceeding—
(i) six months to import explosives in Form 27 and to export explosives in Form 28;
(ii) fifteen days to possess explosives in Form 23 as specified therein;
(iii) one month for public display of fireworks in Form 29;
(b) Every other licence granted or renewed under these rules shall remain in force until the expiry
of the financial year immediately following the financial year in which it was issued.
(c) Notwithstanding anything contained in clause (b), the licensing authority where it is satisfied
that a licence is required for a specific work or festival which is not likely to last up to expiry of the
financial year for which the licence is granted or renewed may grant or renew a licence for such
period as is actually necessary: Provided that the date so specified does not extend beyond the
expiry of the financial year following the year in which the licence is granted or renewed.
(3) An applicant for grant of a new licence in Form 24 or Form 29 may apply to the district
authority for a certificate to the effect that there is no objection to the applicant receiving licence
for the site proposed and the district authority shall, if he sees no objection, grant such certificate
to applicant who shall forward that certificate to licensing authority with his application.
(4) The licensing authority may refer an application not accompanied by a certificate granted
under sub-rule (3) to district authority for his observations.
(5) If the district authority, either on reference being made to him, or otherwise, intimates to the
Chief Controller, as the case may be, that any licence which has been applied for should not in
his opinion be granted, such licence shall not be issued without the sanction of the Central
Government.
(6) No licence to import explosives shall be necessary in cases where the explosives imported—
(i) is not intended to be stored on the port of import but is intended to be transported direct to a
territory not being part of India;
(ii) can be possessed without a licence under rule 114.
(7) An application for a licence to use explosives shall, if the operation are to be carried on within
100 metres of a railway line, obtain from the Railway authority concerned a certificate to the effect
that there is no objection to the applicant receiving a licence for the site proposed and forward a
certificate to the licensing authority with his application.
(8) (i) A cultivator applying for a licence in Form 23, shall obtain a certificate from agricultural
fieldman or a Gram Sewak or any other local authority to the effect that—
(a) the certifying authority has inspected the site and is satisfied that the leveling of ground is
necessary or removal of tree stumps is necessary or sinking of wells is necessary or sinking of
wells has been partly completed, as the case may be;
(b) further work which is necessary is not possible without blasting and forward the certificate to
the licensing authority with his application.
(ii) A person other than a cultivator shall obtain a certificate from local authority having jurisdiction
to the effect that the certifying authority has inspected the site and is satisfied that the work for
which explosives are required is not possible without blasting.
(9) An application of grant of a licence to manufacture Ammonium Nitrate Fuel Oil Explosives
(ANFO) for own immediate use or to possess for own use liquid oxygen explosives at lights
coming under the purview of the Mines Act, 1952, shall be accompanied by a certificate from the
Chief Inspector of Mines that the site where such explosives are to be manufactured, possessed
and used is under the Control of the applicant and comes under the purview of the Mines Act,
1952 and the applicant is authorized to use liquid oxygen explosives or ANFO explosives and
conduct mining operations in the area proposed to be covered by the licence.

156. Procedure to be observed before a licence in Form 20, 21 or 22 is granted.—

(1) A licensing authority on receipt of application and the particulars is provided under subrule (3)
or (4) of rule 154 shall scrutinise the documents and forward to the applicant a statement showing
the distances in Form 17 which should in his opinion be kept clear in and around the factory or
magazine premises or any part thereof and from other building and works. On receipt of the
statement the applicant shall enter the exact distance which can actually be so kept clear, shall
sign the statement and shall return it together with any representation which he may desire to
make to the licensing authority.
(2) After considering any representative made by the applicant under sub-rule (1) and after
making such enquiries as deemed necessary, the licensing authority may further scrutinise the
application and ask the applicant to make changes considered necessary.
(3) After receiving correct documents as per requirements of these rules, the licensing authority
shall refer the application to—
(i) the district authority concerned together with a description of enquiries to be carried out, a draft
licence and a statement in Form 18 showing the distances which he considers should be kept
clear in and around the factory, magazine or store house;
(ii) any other authority for such enquiry as deemed necessary.
(4) Upon receipt of the said application the district authority shall forthwith cause notice to be
published of such application and of the time and place at which he will be prepared to hear it,
and calling upon any person objecting to the establishment of the factory or magazine or store
house on the proposed site to give notice of such objection to him and to the applicant of not less
than seven clear days before the day fixed for hearing the application together his name, address
and calling and a short statement of the grounds of his objections. The day of hearing the
application shall be a day following as soon as practicable, after the expiration of the period of
one month referred to in sub-rule (6).
(5) Where the site of the proposed factory or magazine lies within 1.5 km. of the limits of the
jurisdiction of any town planning municipal authority or port authority, the applicant shall prepare,
for service on such authority, a notice of the application and of the said day of hearing.
(6) The notice under sub-rule (4) shall be published and the notice under sub-rule (5) served at
the expense of the applicant by the district authority not less than one month before the said day
of hearing.
(7) On the day fixed for the hearing or any day to which such hearing may be adjourned from time
to time, the district authority shall hear any objection preferred in accordance with sub-rule (4)
and by any authority referred to in sub-rule (5) and shall make such enquiry as he may deem
necessary.
(8) On completion of the enquiry the district authority shall forward the application, statement and
plans to the licensing authority together with a report of the procedure followed by him and
whether he has any objection to the applicant receiving a licence at the site proposed.
(9) The district authority shall complete his enquiry under sub-rules (4) to (7) and forward the
report to the licensing authority as expeditiously as by the licensing authority.
(10) If the district authority objects to the grant of the licence on any of the grounds specified in
sub-rule (3), no licensee shall be granted by the licensing authority except with the sanction of the
Central Government.
(11) Notwithstanding anything contained in this rule, provisions of sub-rules (3) to (10) except
rule 3(ii) shall not apply in case of an application or to the manufacture of Ammonium Nitrate Fuel
Oil explosives (ANFO) at site of use coming under the purview of the Mines Act, 1952.

157. Procedure to be followed for grant of a licence in Form 22 to possess small quantity
of explosives for own use—
Notwithstanding anything contained in sub-rules (3) to (7) of rule 156, where the licensing
authority is the Chief Controller or a Controller and where the quantity of explosives proposed to
the applicant may apply to the district authority together with an application in Form 5, statement
in Form 17 and the necessary plans for the grant of a licence for the site proposed and the district
authority shall, if he sees no objection after conducing enquiries as required under these rules,
grant such certificate to the applicant who may forward it to the licensing authority together with
his application.

158. Procedure to be observed for grant of a shor-firer’s permit -

(1) The Chief Controller or any authority authorised by him in this behalf shall conduct such
examination and enquiries as deemed necessary before granting a permit to any shotfirer:
Provided that no examination of the shot-firer may be necessary if the Chief Controller is satisfied
that applicant possess requisite qualifications and experience. (2) The applicant shall pay
prescribed fees for the examination, if any, under sub-rule (1).

159. Procedure on grant of No Objection Certificate by the district authority.—

The licensing authority on receipt of No Objection Certificate from the district authority for grant of
a licence may make such other enquiries as deemed necessary and take further action for grant
of licence:
Provided that if the licensing authority does not receive the No Objection Certificate under rule
156(8) within the time limit or any extension thereof, such authority may advise the applicant
accordingly and take further action as deemed necessary.

160. Refusal of No Objection Certificate —

The authority refusing to grant No Objection Certificate as required under rule 156, shall record in
writing its reasons for such refusal and communicate such reasons and facts of the case to the
licensing authority. The reasons for not issuing No Objection Certificate may be communicated to
the applicant if demanded, unless in the opinion of the licensing authority such reasons cannot be
divulged in the public interest.

161. Procedure o n grant of a licence for a magazine, store house or to manufacture

explosives—
(1) Two copies of every licence granted by the Chief Controller or the Controller shall be
forwarded to the district authority and in case the licensing authority is the Chief Controller, the
original licence shall be forwarded to the Controller in whose jurisdiction the premises are
situated.
(2) If the Controller after inspection, is satisfied that all the requirements of these rules and the
conditions of the licence have been complied with, he shall further endorse the licence, but unless
and until so endorsed the licence shall not come into force: Provided that when a licence cannot
be endorsed forthwith it shall come into force from such date as the licensing authority may order
in writing.
(3) If the Controller of Explosives decides not to endorse a licence, he shall immediately return
the licence to the licensing authority together with a statement of his reasons for not endorsing it.
(4) On receipt of statement referred to in sub-rule (3), the licensing authority after making
such enquiry, if any, as he may consider necessary communicate his decision to the applicant
and the district authority.

162. Procedure on grant of a licence to possess and sell explosives, to transport

explosives or to possess explosives for own use by cultivators or other persons.—
(1) A copy of every licence granted to possess and sell explosives in Form 24 or to transport
explosives in Form 26 shall be forwarded to the district authority concerned.
(2) The district authority shall forward a copy of every licence granted by him in Form 23 or Form
24 to the Chief Controller having jurisdiction over the area.

163. Particulars of licence.—

Every licence granted under these rules shall be held subject to the observance of these rules
and the conditions endorsed on it and shall contain all particulars which are contained in the Form
prescribed for it by these rules.

164. Amendment of licence.—

(1) Any licence granted under these rules may be amended by the authority empowered to grant
the licence provided that amendment shall not be inconsistent with the provisions of these rules.
(2) A licensee who desires to have his licence amended shall submit the following particulars to
the licensing authority, namely:
(a) an application stating nature of the amendment and the reasons therefor;
(b) the original licence together with enclosures to it;
(c) plans showing the details of the proposed amendment is such plans are required by the
licensing authority for the purpose of amendment;
(d) prescribed scrutiny fee;
(e) prescribed amendment fee.
(3) The licensing authority after scrutiny of the documents submitted under sub-rule (2) and after
making such further inquiries and taking such action as deemed necessary may take suitable
action to amend the licence.

165. Renewal of licence.—

(1) A licence may be renewed by the authority empowered to grant such licence, provided that a
licence which has been granted by the Chief Controller may be renewed without any alteration by
a Controller duly authorized by the Chief Controller in this behalf: Provided that a licence which
has been granted by the district authority may be renewed without any alteration by a Sub-
Divisional Magistrate or an Executive Magistrate or a Taluka Magistrate duly authorized by the
district authority in the behalf.
(2) The Controller authorized by the Chief Controller under sub-rule (1) may, and when so
required by the Chief Controller, shall require the licensee to follow the procedure laid down
under sub-rule (1) of the rule 156 before renewing licence in Form 20 or Form 21 or Form 22.
(3) Every application for the renewal of a licence shall be made so as to reach the licensing
authority or the authority empowered to renew the licence at least 30 days before the date on
which the licence expires, and if the application is so made, the licence shall be deemed to be in
force until such date as the licensing authority renews the licence or until an intimation that the
renewal of the licence is refused has been communicated to the applicant.
(4) Every application under sub-rule (3) for renewal of the licence shall be accompanied by the
following documents;
(i) application in Form 13;
(ii) the original licence together with its enclosures and approved plans, Schedules and Forms;
(iii) prescribed renewal fee.
(5) The same fee shall be charged for the renewal of a licence for each year as for grant thereof:
Provided that if the application for renewal is not received within the time specified in sub-rule (3),
the licence shall be renewed only on payment of double fee as ordinarily payable for the license.
Provided further that if the renewal application together with complete documents specified under
sub-rule (4) is received by the licensing authority after the date of expiry but not later than 30
days from the date of expiry; and if the licensing authority is satisfied that such delay is beyond
the control of the licensee, the licence may, without prejudice to any other action that may be
taken in this behalf, be renewed on payment of double the fee ordinarily payable for the licence.
(6) In case of an application for the renewal of the licence for a period of more than one year at a
time, the fee prescribed under proviso of sub-rule (5), if payable, shall be paid only for the first
financial year of renewal.
(7) Every licence granted under these rules other than a licence granted for a specified period all
be renewable for two years where there has been no contravention of the Act or the rules framed
thereunder or of any condition of the licence so renewed.
(8) Where a licence renewed for more than one financial year is surrendered before its expiry, the
renewal fee paid for the unexpired portion of the licence shall be refunded to the licensee
provided that no refund of renewal fee shall be made for any financial year during which—
(a) the licensing authority received the renewed licence for surrender;
(b) any explosive is received or stored on the authority of the licence.
(9) No licence shall be renewed if the application for renewal is received by the licensing authority
after 30 days of the date of its expiry.
(10) When a licence is renewed by the Chief Controller a Controller, an intimation to that effect
shall be sent to the district authority concerned and when a licence is renewed by the district
authority, intimation to that effect shall be sent to the Controller having jurisdiction.

166. Refusal to amend or renew a license.—

(1) The licensing authority refusing to amend or renew a licence shall record its reasons for such
refusal in writing.
(2) The licensing authority shall refuse to renew a licence if such licence can be revoked in
accordance with the Act or rules framed thereunder.
(3) A brief statement of reasons for refusal to renew a licence shall be given to the holder of the
licence on demand unless in any case the licensing authority is of the opinion that it will not be in
public interest to furnish such statement.
(4) Where the renewal of the licence is refused, the fee paid for the renewal shall be refunded to
the licensee after deducting the proportionate fee for the period beginning from the date from
which the licence was to be renewed upto the date from which renewal thereof is refused.

167. Suspension and revocation of licence.—

(1) An order of suspension or revocation of a licence shall take effect from the date specified
therein and shall be deemed to have been served if sent by post to the address of the licensee
entered in the licence.
(2) The suspension of a licence shall not debar the holder of the licence from applying for its
renewal in accordance with the provisions of rule 165.

168. Procedure on expiration, suspension or revocation of licence.—

(1) A licensee on the expiration, suspension or revocation of his licence forthwith give notice to
the licensing authority of the description and quantity of explosives in his possession and shall
comply with any directions which the licensing authority may give in regard to their disposal.
(2) The licensing authority may grant for a term not exceeding three months from the date of
expiration, suspension or revocation, as the case may be, a temporary licence for the possession
and sale of the explosives actually held at the time of the issue of the temporary licence.
(3) The fee chargeable for a licence granted udner sub-rule (2) shall bear the same proportion
to the fee charged on the expired or revoked licence as the period covered by the temporary
licence bears to a full year.

169. Appeals.—
(1) An appeal against an order of licensing authority Refusing to grant or renew a license or
suspending or revoking a licence or varying the condition of a licence shall lie—
i) if the order is passed by the Chief Controller to the Central Government;
(ii) if the order is passed by the Controller to the Chief Controller.
(2) Every appeal shall be preferred in accordance with the provisions of the Act and shall be
presented within 30 days of the date of the communication of such order.
(3) Every appeal shall be accompanied by fees specified in rules 176 and 177 and the fees
shall be refunded to the appellant if the appeal is upheld by the appellate authority.
(4) Appeal against the order of the district authority refusing grant of No Objection Certificate shall
lie with the authority immediately superior to such authority. Such an appeal shall be filed in
accordance with the procedure laid down by such appellate authority.
170. Procedure to be followed by the appellate authority. —
On receipt of the appeal and if such appeal can be admitted in accordance with the Act the
appellate authority may call for records of the case from the authority who passed the order
appealed against and may make such further enquiries as it may deem necessary and after
giving the appellant a reasonable opportunity of being heard, pass final orders.

171. Procedure on death or disability of licence-

(1) If a licensee dies or becomes insolvent or mentally incapable or otherwise disabled, the
licence granted to him under these rules shall stand cancelled on the date of licensee’s death or
his mental incapability or his insolvency or disability.
(2) The legal heirs or representatives of the licensee referred to in sub-rule (1) shall as soon
as may be, notify the licensing authority—
(a) the date of death, insolvency, mental incapability or other disability; and
(b) the stock of all explosives kept at the licensed premises and shall await the directions of the
licensing authority with regard to the disposal of such explosives.

172. Loss of licence.—

Where a licence granted under these rules or an authenticated copy
thereof granted under rule 173 is lost or accidentally destroyed, a duplicate may be granted on
payment of fees, specified in rules 176 and 177.

173. Procedure of licence or pass on demand.—

(1) Every person holding or acting under a licence granted under these rules shall, when called
upon to do so by any officer specified in sub-rule (1) of rule 179, produce it, or an authenticated
copy of it, at such time and place as may be directed by such officer.
(2) Every person in charge of a consignment of explosives in transit under cover of a pass
issued under these rules shall produce it when called upon to do so by any officer specified in
sub-rule (1) of rule 179.
(3) Copies of any licence may, for the purposes of this rule, be authenticated free of charge by
the authority, which granted the licence.

174. Executive control over authorities.—

Every authority other than the Central Government acting under this Chapter shall be subject to
the directions and control of the Central Government. Provided that nothing in this rule shall be
deemed to effect the powers of executive control of the Chief Controller over the officers
subordinate to him.