Inspection System

Risk Based Industries System

Composite Inspection Scheme


The most contentious issue in conducting the inspection is selection of the establishment/unit by adopting the predetermined criteria. It has been decided that each manufacturing unit shall be categorized in three groups based upon the level of hazards involved as enumerated in the laws i.e.

  1. Major Accident Hazardous,
  2. Hazardous
  3. Non Hazardous

The selections of units for inspections shall be determined by taking into account the nature of hazard in the industry, the time period since last inspection and number of workers employed. Such list of industries will be reviewed quarterly for addition/deletion of units found to be sensitive in terms ofindustrial relations/unrest, complaints received against some industries etc. The periodicity of inspection shall be in accordance to the following criteria:-

  • Every MAH unit shall be inspected once in a year.
  • All the Hazardous units involving risk of fire, explosion and toxic release are to be inspected once in every two-year.
  • The non-hazardous units are to be inspected once in every five year

Mandatory inspections :

As a part of Ease of Doing Business and in compliance of the provisions of State Enterprise Promotion Policy, 2015, the following categories of factories shall be exempted from physical inspections under all labour laws.

  • All the non-hazardous Factories having valid license/registration employing less than 50 workers who opted for Self Certification Scheme and has submitted the single return under various labour laws.
  • Start-up Establishments for a period of two years from the date of commencement of work/business.
  • Establishment having no employee i.e. employing family members only.
  • Any other Establishment specifically exempted by Government from time to time.
  • Establishment under SEZ.