Industrial undertakings exempt from industrial license, including existing units undertaking substantial expansion, are required to file an Industrial Entrepreneur Memorandum (IEM) in Part ‘A’ (as per prescribed format) with the Secretariat of Industrial Assistance (SIA), Department of Industrial Policy and Promotion, Government of India, and obtain an acknowledgement. No further approval is required. Immediately after commencement of commercial production, Part B of the IEM has to be filled in the prescribed format. The facility for amendment of existing IEMs has also been introduced.

Industries Are Required To File IEM:

All industrial undertakings exempted from the requirements of industrial licensing under I (D&R) Act, 1951 and having an investment of Rs 10 Crore or above in the ‘manufacturing sector’ and Rs. 5 Crore or above in the ‘services sector’, including Existing Units, New undertaking (NU) and New Article (NA), are required to file an IEM, i.e. “Form IEM” in the prescribed format ‘Part A’.

‘Part A’ of IEM:

All on-line applications filed through the portal are scrutinized in ‘IEM Section’ for verification related to ‘Incorporation Certificate’; ‘Memorandum of Article’; ‘Article of Association’ and ‘Codes related to NIC & Administrative Ministry/Department etc. Once the above is verified and found correct; the Department issues IEM Acknowledgement through its portal followed by delivery of physical copy through post.

Part B:

All Industrial undertakings which had filed IEM are required to report commencement of commercial production and this is also filed on-line on the same portal by way of filing information as per prescribed form ‘Part B’ of the IEM after commencement of commercial production by the establishment; a copy of the related IEM Acknowledgement. is required to be attached while filing this information on the portal. Like ‘Part A’ Acknowledgement. of IEM, the Department also issues Acknowledgement. for ‘Part B’ through its portal followed by delivery of physical copy through post.

Cases required IEM:

  1. To set up a new industrial undertaking,
  2. To effect substantial expansion of the industrial undertaking,
  3. To manufacture a new article
  4. To carry on business of existing SSI units after graduating into large scale industry.

Procedure for filling of IEM:

The promoter has to make an application to Govt. of India in prescribed format along with Demand Draft of Rs. 1000/- in the name of Secretariat for Industrial Assistance (SIA)