Contents
- Introduction: Understanding the IEM Process
- Overview of Key Changes and Updates for FY2025
- [IEM Fundamentals and Legal Framework]
- [IEM Part A: Filing Investment Intentions]
- [IEM Part B: Reporting Commencement of Production]
- [IEM Amendments: Changes and Updates]
- [Special Requirements for Sugar and Ethanol Sector]
- [Paperless Portal and Digital Transformation]
- Impacted Categories and Beneficiaries
- Timeline of Changes and Key Events
- You may also like
- Frequently Asked Questions (FAQs)
- Conclusion
Introduction: Understanding the IEM Process
The Industrial Entrepreneur Memorandum (IEM) stands as a cornerstone of India's business facilitation framework. Designed under the Industries (Development and Regulation) Act, 1951, it represents the government's commitment to making entrepreneurship accessible and straightforward. Today, as an entrepreneur or business operator, filing an IEM through the upgraded portal is more seamless than ever.
The IEM process has been completely revamped to offer single IEM for one company to capture details of all its locations and sectors, eliminating duplication and enhancing transparency in industrial development.
Whether you are starting a new manufacturing unit, expanding existing operations, or modifying your current facility, understanding the three critical components of the IEM process—Part A (investment intentions), Part B (commencement of production), and amendments—is essential for smooth operations. The government has made substantial progress in digitizing this process, moving from paper-based systems to an entirely paperless, online portal.
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File your IEM Part A before establishing the unit, and ensure all documents are uploaded on the G2B portal to avoid processing delays. The entire process takes approximately one week from final clarification submission.
Overview of Key Changes and Updates for FY2025
The Industrial Entrepreneur Memorandum framework has witnessed significant modernization and procedural refinements in 2025. The Department for Promotion of Industry and Internal Trade (DPIIT) has continued its commitment to ease of doing business by streamlining the IEM process further. Major updates include enhanced digital portal capabilities, faster turnaround times, and integrated documentation requirements.
Note: The IEM system now operates on a fully paperless basis with all communications conducted through email and SMS, eliminating the need for physical documentation submission at government offices.
Important Update for 2025: Sugar and ethanol sector applications now require prior consent from the Sugar Directorate before IEM amendments can be processed. This change was formalized in April 2024 and continues through 2025.
| Change Area | Previous Process (2023-2024) | Current Process (2025) |
|---|---|---|
| Document Submission | Physical documents required at office | Completely online via G2B portal |
| Part A Processing Time | Variable, up to 4 weeks | One week after last clarification |
| Part B Processing Time | Variable, up to 3 weeks | One week after last clarification |
| Amendment Processing Time | Up to 3 weeks | 15 days after last clarification |
| Sugar Sector Approval | Not mandatory for all amendments | Mandatory Sugar Directorate consent for amendments |
| Certificate Communication | Physical certificates issued | Digital certificates via email and SMS |
These changes represent a significant leap forward in the government's mission to make India a business-friendly destination. The integration of multiple amendments into a single tracking system reduces confusion and ensures that businesses can manage their licenses more efficiently from a unified dashboard.
IEM Fundamentals and Legal Framework
What is Industrial Entrepreneur Memorandum?
An Industrial Entrepreneur Memorandum is a formal notification filed by industrial undertakings to the government, serving multiple purposes. It declares the entrepreneur's intention to establish or expand a manufacturing unit, provides details about the business, and enables the government to maintain an updated database of industrial activity. The IEM serves as proof of business registration for those exempted from obtaining industrial licenses under the Industries (Development and Regulation) Act, 1951.
The filing of IEM is mandatory for all industrial undertakings with an investment in plant and machinery of Rs. 50 crore and above, or turnover of Rs. 250 crore and above. Existing units, new undertakings, and new articles within existing units may file online applications for issuance of IEM through the Government-to-Business (G2B) portal.
Legal Basis and Industries Act 1951
The IEM framework derives its authority from the Industries (Development and Regulation) Act, 1951, a seminal legislation that governs industrial licensing in India. This Act established the regulatory framework for industrial enterprises, balancing the need for industrial development with regulatory oversight. Over the decades, successive governments have progressively liberalized the licensing regime, ultimately leading to the exemption of most manufacturing undertakings from licensing requirements.
The current IEM system represents the culmination of this liberalization process. Rather than requiring mandatory licenses for every industrial unit, the government now allows exempted undertakings to file an IEM—a simpler, less burdensome alternative. This approach maintains government oversight while dramatically reducing compliance costs and procedural complexity for entrepreneurs. The IEM is recognized as valid proof of an undertaking's legitimacy under the Industries (Development and Regulation) Act, 1951.
IEM Part A: Filing Investment Intentions
Part A Overview and Eligibility
IEM Part A represents the initial investment intention filing stage. All industrial undertakings exempted from the requirements of Industrial Licensing under the Industries (Development and Regulation) Act, 1951, and having an investment in plant and machinery of Rs. 50 crore and above or turnover of Rs. 250 crore and above may file Part A. This includes existing units, new undertakings, and new articles or services within existing entities.
The Part A filing is submitted before the actual establishment or expansion of the manufacturing unit. It informs the government of the entrepreneur's plans and allows the department to track industrial investment across sectors and geographies. The filing is made on the G2B portal using the prescribed application form for Part A, along with all mandatory documents.
Mandatory Documents for Different Entity Types
For Private and Public Sector Undertakings:
When filing Part A as a Private or Public Sector Undertaking, entrepreneurs must submit a comprehensive set of documentation to prove the enterprise's legitimacy and operational details. The following documents are mandatory:
- Pan Card of Company: Serves as proof that the company is an existing unit and establishes its tax identification status.
- Master Data from Ministry of Corporate Affairs (MCA): Available on the official MCA website, this document proves the registered address of the company and confirms its corporate status.
- Certificate of Incorporation: Issued by the Registrar of Companies, this document proves that the name of the company is the same as given in the application.
- Memorandum of Articles (MOA): Demonstrates the product mentioned in the application and the company's manufacturing objectives.
- Article of Association (AOA): Provides proof for the regulations of the company's operations and its stated purpose.
- GST Certificate: Serves as proof for the location address mentioned in the application.
- Distance Certificate for Setting Up New Sugar Unit: For sugar-related applications, requires a Distance Certificate in accordance with the Sugar Cane Control Order, 2006, and a No Objection Certificate from the Directorate of Sugar, Kirshi Bhawan/Commissioner of Sugar of the concerned state government (applicable to existing units applying from IL to IEM for sugar applications).
For Partnership Firms:
Partnership entities have a slightly different documentation requirement. The mandatory documents include:
- Pan Card of Company: Proof that the company is an existing unit.
- Partnership Deed: Proves that the company is a registered firm.
- GST Certificate: Proof for location address mentioned in the application.
- Distance Certificate and No Objection Certificate (if applicable): For sugar sector applications, follow the same requirements as undertakings.
For Cooperative Societies:
Cooperative entities filing Part A must provide:
- Pan Card of Company: Proof that the company is an existing unit.
- By-laws of Company: Proof for the product of manufacture.
- Registration Certificate from Registrar of Cooperative Societies: Proves that the name of the company is the same as given in the application.
- GST Certificate: Proof for location address.
- Distance Certificate and No Objection Certificate (if applicable): For sugar sector applications, mandatory documents as per guidelines.
Step-by-Step Filing Process for Part A
- Step 1 - Prepare Documentation: Gather all mandatory documents specific to your entity type (Private/Public, Partnership, or Cooperative). Ensure all documents are current and match the details you plan to declare in the application.
- Step 2 - Access the G2B Portal: Visit the Government-to-Business portal at http://services.dpiit.gov.in. Create an account or log in with your existing credentials if you have filed before.
- Step 3 - Select Application Type: Choose "IEM Part A" from the application options and select your entity type (Private/Public Sector, Partnership, or Cooperative).
- Step 4 - Fill Application Form: Complete the prescribed application form with accurate information about your company, products, investment details, and multiple locations if applicable. The upgraded portal now allows a single IEM to capture all locations and sectors for one company.
- Step 5 - Upload Documents: Attach all mandatory documents in the prescribed format. Ensure file sizes are within limits and formats are as specified by the portal.
- Step 6 - Submit Application: Review all entered information for accuracy before final submission. Once submitted, you cannot edit the form—corrections require re-filing.
- Step 7 - Track Application: After submission, your application can be tracked on the portal using a unique reference number. The IEM Section may raise clarifications, which you must address within the specified timeframe.
- Step 8 - Receive Acknowledgement: Upon successful processing and clarification resolution, Part A IEM acknowledgement is issued within one week. You will receive this digitally via email and SMS.
IEM Part B: Reporting Commencement of Production
Part B Overview and Requirements
IEM Part B represents the next critical stage in the industrial enterprise lifecycle. All industrial undertakings that have filed IEM Part A are required to report the commencement of commercial production online on the G2B portal by filing information in the prescribed form in Part B. This must be done after the commencement of commercial production. A copy of the IEM Part A acknowledgement is required to be attached when filing the Part B information on the portal.
The Part B filing serves as proof to the government that the declared investment intentions have materialized into actual production activity. This helps maintain an accurate database of operational manufacturing units across the country. The DPIIT issues acknowledgement for Part B in the same manner as Part A through its digital portal.
Documents Required for Part B Filing
The mandatory document requirement for Part B filing is streamlined and minimal:
- Copy of Part A IEM Acknowledgement: This serves as proof that the items of manufacture and production capacities are the same as indicated in Part A. By submitting the Part A acknowledgement with your Part B application, you confirm that your actual production aligns with your investment intentions filed earlier.
This simplified requirement reflects the government's commitment to reducing documentation burden. Since all material details were already verified during Part A processing, Part B focuses specifically on confirming that production has commenced as planned. The filing can be completed quickly through the portal without extensive re-verification of company credentials.
IEM Amendments: Changes and Updates
Types of Amendments and Change Categories
Once an IEM has been issued, circumstances may require amendments. The IEM framework provides for various types of amendments to accommodate changing business needs. These amendments are classified by the nature of the change:
Change in Company Name
If your company undergoes a name change, whether due to rebranding or corporate restructuring, this must be reflected in your IEM. The amendment requires submission of either a Certificate of Incorporation issued by the Registrar of Companies, or an NCLT Order in case of company amalgamation. This ensures the IEM reflects the current legal entity name.
Change in Registered Address
Any modification to the company's registered address must be communicated to the IEM Section. The amendment requires Master Data available on the Ministry of Corporate Affairs website, confirming the new registered address.
Change or Addition of Item and Production Capacity
If your manufacturing focus shifts or you wish to add new products to your portfolio, you must file an amendment. Notably, no document is required for this category of amendment—the IEM Section accepts the amendment on the basis of the undertaking provided on the company's letterhead that the chemical items being added are not hazardous and are under de-licensed category.
Change in Location Address or Addition of New Locations
When you expand operations to new geographic locations, each new location requires an amendment reflecting the new address. A GST Certificate is mandatory for this type of amendment to prove the newly declared location address.
Change in Investment Figures
Updates to the investment amount in plant and machinery require amendment filings. Notably, no document is required—the change is processed based on company notification.
Manufacture of De-Licensed Chemicals
For companies seeking to manufacture chemicals under de-licensed category, the applicant must submit an undertaking on the company's letterhead stating that the chemical items to be manufactured are not hazardous and are under the de-licensed category.
Sugar and Ethanol Sector Amendments
For sugar and ethanol sector applications involving changes in production capacity, company name, or location, a Distance Certificate in accordance with the Sugar Cane Control Order, 2006, and a No Objection Certificate from the Directorate of Sugar, Kirshi Bhawan/Commissioner of Sugar of the concerned State Government are mandatory. This requirement, formalized on April 8, 2024, ensures that sugar industry expansions comply with national sugarcane policy.
Documents Required for Each Amendment Type
| Purpose of Amendment | Mandatory Document(s) Required |
|---|---|
| Change in Name of Company | i. Certificate of Incorporation issued by Registrar of Companies, MCA OR ii. NCLT Order in case of Amalgamation of Companies |
| Change in Registered Address of Company | Master Data available on Ministry of Corporate Affairs Website |
| Change/Addition of Item and Production Capacity | No Document Required |
| Change in Location Address or Addition of New Locations | GST Certificate |
| Change in Investment Figures | No Document Required |
| Manufacture of De-Licensed Chemicals | Company Undertaking on Letter Head that Chemical Items are not Hazardous and Under De-Licensed Category |
| Sugar/Ethanol Sector Amendment | i. Distance Certificate (Sugar Cane Control Order, 2006) AND ii. No Objection Certificate from Directorate of Sugar or State Commissioner |
Key Point: Amendment in Part A IEM is issued within 15 days after the last clarification(s) raised by the IEM Section, making the amendment process faster than initial Part A approval which takes one week.
Special Requirements for Sugar and Ethanol Sector
The sugar and ethanol sector operates under specialized regulations that impose additional compliance requirements on IEM applicants and amendments. These requirements exist because sugar production is a controlled industry in India, with capacity limitations designed to balance supply and demand while supporting farmer interests and maintaining fair pricing.
Sugar Directorate Consultation Requirement
Effective April 8, 2024, and continuing through 2025, the Department for Promotion of Industry and Internal Trade (DPIIT) established that before getting an IEM amended for sugar or ethanol sector applications (with sugarcane crushing), the applicant must take prior consent from the Sugar Directorate. This represents a significant procedural change that tightens oversight of industrial expansion in the sugar sector.
The Office Memorandum referenced as F.8/5/2024-ST (C.N.-386237) issued on April 8, 2024, clarified that DPIIT should not issue any IEM amendment related to sugar/ethanol (with sugarcane crushing) industry without the consent of the Directorate of Sugar, Ministry of Consumer Affairs, Food and Public Distribution.
Required Documentation for Sugar Sector
Sugar sector applicants must provide two specific documents when filing new IEM Part A applications or amendments involving sugar production:
- Distance Certificate: Issued in accordance with the Sugar Cane Control Order, 2006. This certificate confirms that the proposed location meets the minimum distance requirements from existing sugar factories, as stipulated by national sugarcane policy. The distance norms ensure that sugar factories don't cluster in a manner that would lead to competition for raw materials that could harm farmers.
- No Objection Certificate from Sugar Directorate: Dated after April 8, 2024 (Office Memorandum dated 04/08/2015 and 26/04/2023), issued by the Directorate of Sugar, Kirshi Bhawan, New Delhi, or the Commissioner of Sugar of the concerned State Government. This NOC explicitly permits the proposed establishment or modification of a sugar facility.
Critical Compliance Note: Any sugar factory seeking to amend its IEM regarding production capacity, company name, or location must obtain Sugar Directorate consent. Non-compliance will result in rejection of the amendment application. Existing units applying from Industrial License (IL) to IEM for sugar applications must also provide these documents.
This regulatory requirement reflects the government's balanced approach to industrial policy—encouraging investment while protecting agricultural interests and ensuring sustainable sector development. Sugar factories represent significant capital investment and consume substantial agricultural resources, making coordinated policy oversight essential.
Paperless Portal and Digital Transformation
Evolution of the IEM Portal
The Government of India has undergone a comprehensive digital transformation in its approach to IEM processing. As of March 30, 2021, the DPIIT completely revamped the IEM portal with a focus on enhancing ease of doing business and transparency. This upgrade represents one of the most significant modernizations in the industrial licensing framework.
Key Features of the Upgraded Portal
Single IEM for Multiple Locations and Sectors
The most transformative feature of the upgraded portal is the ability to file a single IEM for one company that captures details of all its locations and sectors. This eliminates the cumbersome process of filing separate IEMs for each location or product line. The unified approach reduces administrative burden, prevents data duplication, and provides the government with a cleaner, more accurate database of industrial enterprises.
Seamless Part A and Part B Filing
The upgraded system facilitates the seamless filling of investment intentions (IEM-Part A) and reporting of commencement of production (IEM-Part B) in a cohesive manner. The portal remembers your previous filings and allows you to reference them in subsequent applications, significantly reducing data entry requirements.
Easy Amendment Process
Any amendments to previously filed IEMs can now be done easily through the portal. You can track the status of amendments, receive real-time notifications of any queries, and respond to clarifications without visiting any physical office. The entire process is conducted online.
Fully Paperless Communication
All approvals are communicated on emails and SMS in a purely paperless manner to applicants. Simultaneously, information is also sent to concerned State Governments to ensure coordinated policy implementation at state and central levels. This approach achieves multiple objectives simultaneously:
- Reduces processing delays caused by physical document handling
- Provides instantaneous notification to applicants
- Creates digital records for transparency and audit trails
- Enables coordination between central and state governments
- Reduces environmental impact by eliminating paper usage
Portal Access and Navigation
The G2B Portal can be accessed at http://services.dpiit.gov.in for the purpose of submitting applications and obtaining IEM certificates. The portal provides a user-friendly interface with step-by-step guidance for first-time filers. Applicants can create accounts, store application templates, track all submissions, and maintain a history of IEM-related transactions in one centralized location.
Portal Integration with State Governments
The upgraded portal includes integration features that automatically transmit information to state-level administrators. This ensures that state governments are kept informed of all industrial enterprises establishing operations within their jurisdictions. Such coordination facilitates smoother state-level approvals for utilities, land, and other infrastructure requirements.
Impacted Categories and Beneficiaries of the IEM System
Primary Beneficiaries
New Entrepreneurs and Startups
The primary beneficiaries of the simplified IEM process are first-time entrepreneurs establishing manufacturing ventures. By eliminating licensing requirements through the IEM system, startups can reduce their pre-production compliance costs and operational delays. The single-window portal allows new businesses to get formal government recognition and approval within days rather than weeks or months.
Existing Manufacturing Units
Established companies seeking to expand, add new product lines, or open additional manufacturing locations benefit substantially from the streamlined amendment process. What previously required weeks of documentation and office visits can now be accomplished in 15 days through the portal.
Large-Scale Manufacturers
Companies with investment above Rs. 50 crore in plant and machinery or turnover exceeding Rs. 250 crore must file IEM regardless. The upgraded system ensures that even complex multi-location, multi-sector enterprises can manage their entire IEM portfolio through a single dashboard rather than maintaining multiple separate filings.
Industrial Clusters and Special Economic Zones
Enterprises operating within industrial clusters or Special Economic Zones (SEZs) benefit from the centralized portal's ability to handle multiple locations. Companies with factories across different industrial zones can manage all filings from one interface.
Sector-Specific Beneficiaries
Sugar and Ethanol Industry
While the sugar and ethanol sectors face additional regulatory requirements due to agricultural linkages, the digital portal also benefits these industries by providing clear, transparent channels for obtaining necessary approvals. The formalized process for Sugar Directorate consultation eliminates ambiguity about what approvals are needed before filing IEM amendments.
Chemical Manufacturing (De-Licensed Categories)
Manufacturers of non-hazardous, de-licensed chemicals can leverage the streamlined process to expand product portfolios. The ability to add new items without extensive documentation makes it easier for chemical companies to diversify their operations.
Domestic Appliance Manufacturing
The example in the application documents shows Mittal Electronics, a domestic appliance manufacturer. Such enterprises manufacturing refrigerators, washing machines, vacuum cleaners, mixers, and grinders can quickly amend their IEMs to add new product categories like induction cooktops, built-in ovens, and microwave ovens.
Indirect Beneficiaries
State Governments
State governments benefit from receiving real-time information about industrial investments being established within their territories. This enables better planning for infrastructure development, power supply, and environmental compliance monitoring.
Government Statistics and Policy Makers
The centralized digital database of IEM filings provides policymakers with real-time data on industrial investment trends across sectors and geographies. This information aids in formulating targeted industrial policies and identifying sectors requiring support.
Investment and Business Development Bodies
Organizations like NITI Aayog and industry associations benefit from access to aggregated, anonymized data about industrial investment patterns, helping them identify emerging opportunities and sectoral trends.
Timeline of Changes and Key Events in IEM Framework
Historical Context and Evolution
Industries (Development and Regulation) Act, 1951
Effective Date: 1951 - The foundation for the entire IEM system. This Act established the regulatory framework for industrial enterprises in India. For decades, it required industrial licenses for most manufacturing activities.
Sugar Cane Control Order, 2006
Effective Date: 2006 - Established distance norms and regulatory framework for sugar factory locations to protect farmer interests. This order remains the primary regulatory instrument for sugar sector capacity control.
Progressive De-Licensing Reforms (1991-2010)
Period: 1991-2010 - Following economic liberalization in 1991, successive governments progressively removed industrial licensing requirements for most sectors. The IEM emerged as a simpler alternative to full licensing.
Recent Modernization Timeline
Paperless Portal Upgrade
Effective Date: March 30, 2021 - The DPIIT announced the complete revamping of the IEM portal with features including single IEM for multiple locations, seamless Part A/B filing, and fully paperless approvals. This represents the most significant portal modernization in recent history.
Sugar Directorate Consultation Requirement
Document Date: August 27, 2020 - Initial D.O. letter from DPIIT Secretary establishing the principle that sugar industry IEM amendments require Sugar Directorate consultation.
Formalized through Office Memorandum: April 8, 2024 - Office Memorandum F.8/5/2024-ST (C.N.-386237) from DPIIT, formally establishing that Sugar Directorate consent is mandatory before issuing IEM amendments for sugar/ethanol sector.
Updated Sugar Requirements
Document Date: April 26, 2023 - Directorate of Sugar issued updated Office Memorandum dated 26/04/2023, setting fresh guidelines for Distance Certificates and No Objection Certificates required from sugar sector IEM applicants.
Key Cut-off Dates and Compliance Deadlines
| Event/Requirement | Effective Date | Significance |
|---|---|---|
| Sugar Directorate Consent Mandatory | April 8, 2024 | Sugar sector amendments filed after this date must obtain Sugar Directorate permission before DPIIT approval |
| Updated Sugar OM by Directorate | April 26, 2023 | Latest guidelines for Distance Certificates and NOCs for sugar applications |
| Paperless Portal Launch | March 30, 2021 | All new and existing applications transitioned to fully digital portal |
| Clarification Response Window | Ongoing (3 months) | Applicants have 3 months from last query to provide clarifications; non-response leads to rejection |
| Part A Processing Timeline | Current (1 week) | Part A IEM issued within 1 week after last clarification received |
| Part B Processing Timeline | Current (1 week) | Part B IEM issued within 1 week after last clarification received |
| Amendment Processing Timeline | Current (15 days) | Amendment IEM issued within 15 days after last clarification received |
Frequently Asked Questions (FAQs) on IEM Part A, Part B & Amendments 2025
What is the difference between IEM Part A and Part B?
IEM Part A is filed before establishing or expanding a manufacturing unit to declare investment intentions and operational plans. IEM Part B is filed after commencement of commercial production to report that the declared investment intentions have materialized into actual production. Part A serves as the application for approval, while Part B serves as proof of project completion.
Who is eligible to file IEM?
All industrial undertakings exempted from Industrial Licensing requirements under the Industries (Development and Regulation) Act, 1951, and having investment in plant and machinery of Rs. 50 crore and above, or turnover of Rs. 250 crore and above, are eligible to file IEM. This includes new undertakings, existing units seeking expansion, and companies adding new products or locations.
How long does it take to get IEM Part A approved?
IEM Part A is issued within one week after submission of the last clarification raised by the IEM Section. If no clarifications are needed, it may be issued sooner. The timeframe has been significantly reduced from the previous 4-week average through the upgraded paperless portal system.
What documents are required for IEM Part A filing?
Documents vary by entity type. For Private/Public Sector Undertakings: Pan Card, MCA Master Data, Certificate of Incorporation, MOA, AOA, and GST Certificate are mandatory. For Partnership Firms: Pan Card, Partnership Deed, and GST Certificate. For Cooperative Societies: Pan Card, By-laws, Registration Certificate, and GST Certificate. Sugar sector applicants must additionally provide Distance Certificates and No Objection Certificates from the Sugar Directorate.
What happens if I don't respond to IEM Section clarifications within the given timeframe?
If clarification is not received within 3 months from the applicant after the last query raised by the IEM Section, the application may be rejected. It is critical to monitor your portal account for any queries and respond promptly to avoid rejection of your application.
Can I file a single IEM for multiple locations?
Yes, the upgraded portal allows a single IEM for one company to capture details of all its locations and sectors. This is one of the most significant improvements in the new system, eliminating the need for separate filings for each location and avoiding duplication in information submission.
What is the process for amending an existing IEM?
Amendments can be filed through the G2B portal by selecting the amendment option and specifying the type of change required. The types of amendments include: change in company name, registered address, items/production capacity, location address, investment figures, or de-licensed chemical manufacturing. Amendments are processed within 15 days after the last clarification. Documentation requirements vary by amendment type.
Do sugar industry applicants need special approvals?
Yes, sugar and ethanol sector applicants must obtain prior consent from the Sugar Directorate before filing IEM amendments. Additionally, Distance Certificates in accordance with the Sugar Cane Control Order, 2006, and No Objection Certificates from the Directorate of Sugar are mandatory. This requirement became formalized on April 8, 2024, and continues through 2025.
How do I track my IEM application status?
All applications can be tracked on the G2B portal using your unique application reference number. The portal provides real-time status updates, notifies you of any clarifications needed via email and SMS, and allows you to upload responses directly through the system. This eliminates the need for physical office visits.
What is the submission channel for IEM applications?
All IEM applications must be submitted through the G2B Portal at http://services.dpiit.gov.in. The submission channel is: Assistant Section Officer → Section Officer or Under Secretary. All communications, including queries and approvals, are conducted through the portal via email and SMS in a completely paperless manner.
Can I modify my IEM after it is issued?
Yes, you can file amendments to modify your IEM for various reasons including company name changes, address changes, addition of new products or locations, changes in investment, or modifications to production capacity. Each type of amendment has specific documentation requirements, and amendments are typically processed within 15 days. For sugar sector amendments, prior Sugar Directorate consent is mandatory.
Conclusion: Streamlining Industrial Enterprise Growth in India
The Industrial Entrepreneur Memorandum system represents India's commitment to balancing industrial growth with regulatory oversight. From its foundation in the Industries (Development and Regulation) Act, 1951, through the progressive de-licensing reforms of recent decades, to the cutting-edge paperless portal launched in 2025, the IEM framework has evolved to meet the changing needs of Indian industry.
The three pillars of the current system—Part A (investment intentions), Part B (commencement of production), and Amendments (modifications to existing filings)—provide a comprehensive yet streamlined mechanism for managing industrial enterprises. The shift to a fully digital, paperless portal has eliminated processing delays while maintaining government oversight and coordination with state-level authorities.
For entrepreneurs planning new ventures, whether in traditional manufacturing or emerging sectors like clean energy or advanced chemicals, the IEM system offers a clear, transparent path to government recognition. The single-window portal and dramatically reduced processing times mean that compliance can be achieved in weeks rather than months, allowing businesses to focus on actual production and job creation.
Special sector requirements, particularly for sugar and ethanol industries, demonstrate the government's nuanced approach to industrial policy. Rather than imposing blanket restrictions, the framework enables sectoral development while protecting critical stakeholder interests—in this case, sugarcane farmers and the agricultural economy.
As you embark on your manufacturing journey or expand existing operations, remember that the IEM system exists to facilitate your growth, not to hinder it. Utilize the comprehensive resources available on the G2B portal, prepare your documentation carefully, and engage proactively with the IEM Section when clarifications are requested. With the current processing timelines and streamlined procedures, your path from planning to production approval can be remarkably swift.
Take action today: Visit http://services.dpiit.gov.in to explore the portal, download application templates specific to your entity type, and begin your journey toward IEM approval. The future of Indian manufacturing is being built through entrepreneurs like you, and the government is committed to removing procedural barriers to your success.