The Arunachal Pradesh Gazette

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 176, Vol. XXXIII, Naharlagun, Monday, July 6, 2026, Asadha 15, 1948 (Saka)

GOVERNMENT OF ARUNACHAL PRADESH

DEPARTMENT LAW, LEGISLATIVE AND JUSTICE

CIVIL SECRETARIAT

ITANAGAR

————

NOTIFICATION

The 2nd July, 2026

No. LAW/LEGN-13/2026.— The following Ordinance promulgated by the Hon’ble Governor of Arunachal

Pradesh is hereby published for general information,-

(Promulgated by the Governor on 24th June, 2026)

THE ARUNACHAL PRADESH MICRO, SMALL AND MEDIUM ENTERPRISES

(FACILITATION, ESTABLISHMENT AND OPERATION) ORDINANCE, 2026.

ORDINANCE

(No.1 of 2026)

to provide for exemption from certain approvals and inspections for the establishment and operation of

micro, small and medium enterprises in the State of Arunachal Pradesh, for matters connected therewith or

incidental thereto;

WHEREAS, the Arunachal Pradesh Legislative Assembly is not in session;

AND WHEREAS, with a view to promote inclusive economic growth, generate employment, and encourage

entrepreneurship among the people of Arunachal Pradesh, it is expedient to provide a facilitative framework for

the establishment and operation of micro, small and medium enterprises, while preserving all existing safeguards

relating to public health, safety, tribal land rights, forest laws, and labour welfare;

AND WHEREAS, the Governor of Arunachal Pradesh is satisfied that circumstances exist which render

it necessary for him to take immediate Ordinance;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 213 of the Constitution

of India, the Governor of Arunachal Pradesh hereby promulgate the following Ordinance in the Seventy-seventh

Year of the Republic of India as follows:-

Short title, extent and commencement :

(1)

This Ordinance may be called the Arunachal Pradesh Micro, Small and Medium Enterprises

(Facilitation, Establishment and Operation) Ordinance, 2026.

(2)

It extends to the whole of the State of Arunachal Pradesh.

(3)

It shall come into force on the date of its publication in the Official Gazette.

Definitions :

In this Ordinance, unless the context otherwise requires,-

(a)

“Acknowledgment Certificate” means the acknowledgment certificate issued under Section 5;

(b)

“approval” means any permission, no-objection certificate, clearance, consent, approval, registration,

licence, or any other similar instrument by whatever name called, required under State law in

connection with the establishment or operation of an enterprise in the State of Arunachal Pradesh,

as specified in Schedule - I;

(c)

“Competent Authority” means any department or agency of the State Government, or a local authority,

statutory body, State-owned corporation, Panchayati Raj institution, municipality, Urban Development

Authority, or any other authority or agency constituted or established under any State law or under

the administrative instruction of the State Government, which is entrusted with the powers or

responsibilities to grant or issue an approval for the establishment or operation of an enterprise in

the State;

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(d)

“Declaration of Intent” means a declaration furnished by an intending entrepreneur to the Nodal

Agency under Section 5 of this Ordinance, along with the undertaking referred to in clause (m);

(e)

“enterprise” means a micro, small or medium enterprise as defined in the Micro, Small and Medium

Enterprises Development Ordinance, 2006 (Central Act No. 27 of 2006), and registered on the

Udyam Registration Portal of the Government of India, or eligible for such registration;

(f)

“Green category industry” and “White category industry” shall have the meanings assigned to them

under the guidelines issued by the Central Pollution Control Board and as adopted by the Arunachal

Pradesh Pollution Control Board from time to time;

(g)

“Government” means Government of Arunachal Pradesh;

(h)

“moratorium period" means the period of two years from the date of issue of the Acknowledgment

Certificate during which the protections under Section 6(2) of this Ordinance are in force;

(i)

“nodal agency” means the nodal agency referred to in Section 3;

(j)

“notification” means a notification published in the Official Gazette of Arunachal Pradesh and the

word “notified” shall be construed accordingly;

(k)

“prescribed” means prescribed by rules made under this Ordinance;

(l)

“State” means the State of Arunachal Pradesh; and

(m) “undertaking” means a written undertaking given by the entrepreneur, in the prescribed form, to the

effect that the enterprise shall comply with all applicable labour welfare requirements, fire safety

norms, and environmental standards as required by law.

Nodal Agency :

(1)

The State Government may, by notification, designate the Department of Industries, or any other

department or agency as it may determine, as the State-level Nodal Agency for the purposes of this

Ordinance, headed by such officer as the State Government may specify.

The State Government may, by notification, designate the District Industries Centre or any other

department or agency as it may determine in each district as the District-level Nodal Agency for the

purposes of this Ordinance.

(3)

The District-level Nodal Agency shall function under the overall supervision and control of the

State-level Nodal Agency.

Powers and functions of Nodal Agency :

(1)

Subject to the superintendence, direction and control of the State Government, the powers and

functions of the Nodal Agencies shall be as follows :-

(a)

to assist and facilitate the establishment of enterprises in industrial areas in the State;

(b)

to receive Declarations of Intent from intending entrepreneurs and to issue Acknowledgment

Certificates under Section 5 of this Ordinance;

(c)

to maintain a register of all Declarations of Intent received and Acknowledgment Certificates

issued under this Ordinance;

(d)

to redress grievances of enterprises with regard to the provisions of this Ordinance; and

(e)

to create awareness about the provisions of this Ordinance among potential entrepreneurs and

relevant Government officials.

(2)

The State Government may assign such other powers and functions to the Nodal Agencies as it

may deem fit for carrying out the purposes of this Ordinance.

Filing of Declaration of Intent and issuance of Acknowledgment Certificate :

(1)

Any person who intends to establish an enterprise in any industrial area of the State of Arunachal Pradesh

may furnish to the District-level Nodal Agency of the concerned district a Declaration of Intent to

establish and operate the enterprise, in the prescribed form and in the prescribed manner,

accompanied by an undertaking as defined in clause(m) of Section 2.

Explanation : Any person who has, before the commencement of this Ordinance, already applied

to the Competent Authority for obtaining all or any of the approvals referred to in clause (b) of

Section 2 may also, at their option, furnish a Declaration of Intent under this sub-section.

(2)

The Declaration of Intent shall be filed online through such portal as the State Government may

designate, or, if no such portal has been designated, physically at the District-level Nodal Agency.

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(3)

On receipt of a Declaration of Intent which is complete in all respects, the District-level Nodal

Agency shall, within seven working days, issue an Acknowledgment Certificate in the prescribed

form to the person who furnished the declaration.

(4)

The Acknowledgment Certificate shall be issued only upon the State Government’s satisfaction,

through the Nodal Agency, that :-

(i)

the enterprise does not fall within any category excluded from the benefits of this Ordinance

under Section 9; and

(ii)

the Declaration of Intent and undertaking are complete in all material respects.

(5)

In case the decision to issue the Acknowledgement Certificate is not taken within the stipulated

period specified in sub-sections (3), the same shall be deemed to have been issued by the District

Nodal Agency.

(6)

Prior to the commencement of operations, and notwithstanding the issuance of the Acknowledgment

Certificate, the enterprise shall obtain a No Objection Certificate from the concerned Fire Safety

Authority and an electrical safety clearance from the competent electrical authority.

Effect of Acknowledgment Certificate :

(1)

An Acknowledgment Certificate issued under Section 5 shall, for all purposes, have effect as if it is

an approval as defined in clause (b) of Section 2, for a period of two years from the date of its

issuance.

(2)

During moratorium period of two years from the date of issuance of Acknowledgement Certificate,

no Competent Authority shall undertake any inspection of the enterprise for the purpose of, or in

connection with, any approval as defined in clause (b) of Section 2:

Provided that a Competent Authority shall have the empower to conduct an inspection during

the moratorium period where-

(i)

a written complaint of a specific nature relating to public health, safety of workers, fire hazard,

environmental damage, labour law violations, or structural safety has been received by such

authority, and the head of that authority has recorded reasons in writing before ordering such

inspection; or

(ii)

the enterprise itself has applied, within the moratorium period, to obtain the regular approvals

under the respective laws.

(3)

Before the expiry of the moratorium period, the enterprise shall obtain all the required approvals as

defined in clause (b) of Section 2. The enterprise may apply for such approvals at any time during

the moratorium period.

(4)

An Acknowledgment Certificate issued under this Ordinance shall not entitle any person to:-

(a)

use any land in deviation of the land use specified in any master plan, local area plan, or town

planning scheme in force;

(b)

use any land in restricted or protected categories including Reserved Forests, Protected Forests,

Eco-Sensitive Zones, notified tribal reserved areas, community lands, or any category of land

protected under the Arunachal Pradesh Land Settlement and Records Act, 2000, or any other

law for the time being in force regulating tribal land;

(c)

carry out any activity requiring prior environmental clearance under the Environment Protection

Act, 1986, or any rules or notifications made thereunder, without first obtaining such

clearance; or

(d)

claim exemption from any provision of Central law unless separately authorised under

Section 7.

Exemption under Central Ordinances :

Where the State Government or any authority under it, is empowered to exempt any enterprise from any

approval or inspection, or any provision relating thereto, under any Central Act, the State Government or, as the

case may be, such authority shall, subject to the provisions of such Central Ordinance, may exercise such power

to grant such exemption to an enterprise covered by an Acknowledgment Certificate issued under Section 5 for at

least a period of two years from the date of issue of such certificate.

Self-certification for White and Green category industries :

(1)

Notwithstanding anything contained in any State law regulating the consent to establish or consent

to operate enterprises, a new enterprise falling under the White or Green category as determined

under the guidelines of the Central Pollution Control Board may, on filing a Declaration of Intent

under Section 5, commence operations on the basis of self-certification in lieu of a formal Consent

to Establish and Consent to Operate under State pollution control regulations, for the duration of the

moratorium period.

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(2)

The self-certification under sub-section (1) shall be in the prescribed form and shall include a

declaration that the enterprise shall maintain all required pollution control standards and permit

such inspection as may lawfully be authorised under Section 6(2)(i) of this Ordinance.

(3)

Nothing in this Section shall apply to enterprises in the Orange or Red category, which shall continue

to obtain regular Consent to Establish and Consent to operate from the Arunachal Pradesh Pollution

Control Board before commencing operations.

Enterprises excluded from the benefits of this Ordinance :

The benefits of this Ordinance shall not be available to the following categories of enterprises, namely:-

(a)

enterprises engaged in the manufacture or processing of tobacco, gutkha, or pan masala;

(b)

enterprises involved in the distillation, brewing, or bottling of alcoholic beverages;

(c)

enterprises falling under the Orange or Red category of the Central Pollution Control Board

classification, unless specifically notified otherwise by the State Government;

(d)

enterprises requiring a prior Environmental Impact Assessment and Environmental Clearance under

any Central law;

(e)

enterprises involving hazardous processes as specified in the First Schedule to the Occupational

Safety, Health and Working Conditions Code, 2020; and

(f)

any other category of enterprise which the State Government may, by notification, exclude from the

benefits of this Ordinance in the public interest.

10.

Savings :

Subject to the provisions of Section 7, nothing in this Ordinance shall be construed as exempting

any enterprise from the application of the provisions of any law for the time being in force, including-

(a)

the laws relating to tribal land rights, including the Arunachal Pradesh Land Settlement and Records

Act, 2000 and any customary or community land tenure laws;

(b)

the provisions of the Indian Forest Act, 1927, the Forest (Conservation) Act, 1980, and the Scheduled

Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006;

(c)

all extant labour laws, including laws relating to wages, hours of work, occupational safety, and

workmen's compensation;

(d)

the Inner Line Permit and related restrictions under the Bengal Eastern Frontier Regulation, 1873,

and any laws, rules or regulations made thereunder;

(e)

the provisions of the Occupational Safety, Health and Working Conditions Code, 2020, insofar as

they relate to safety, health and welfare of workers;

(f)

any regulatory measures and standards prescribed under any law for the time being in force; and

(g)

requirements for environmental clearance under any Central law, except to the extent expressly

provided in this Ordinance.

11.

Ordinance to override other State laws :

Subject to the provisions of Section 10, the provisions of this Ordinance shall have effect

notwithstanding anything inconsistent therewith contained in any other State law for the time being in

force.

12.

Revocation of Acknowledgment Certificate :

(1)

The District-level Nodal Agency may, after giving the enterprise a reasonable opportunity of being

heard, revoke an Acknowledgment Certificate issued under Section 5, if-

(a)

the Declaration of Intent or the undertaking was found to contain willfully false or fraudulent

information;

(b)

the enterprise has violated any of the conditions specified in sub-section (4) of Section 6; or

(c)

the enterprise has been found, after inspection under the proviso to Section 6(2), to be posing

an immediate and serious threat to public health, safety, or the environment, and has failed to

rectify the same within the period specified by the Competent Authority.

(2)

An enterprise aggrieved by an order of revocation under sub-section (1)

may prefer an appeal to

the State-level Nodal Agency within thirty days of the date of such order.

13.

Protection of action taken in good faith :

No suit, prosecution or other legal proceedings shall lie against the State Government, the Nodal

Agency, the Competent Authority, or any employee of the State Government in respect of anything done

or intended to be done in good faith under this Ordinance or any rules made thereunder,-

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14.

Penalties :

(1)

Any person who, whether at his own instance or at the instance of any other person commences,

undertakes or carries out development of any land or building or commences operations of any

establishment-

(a)

without permission or acknowledgement as required under the Ordinance; or

(b)

which is not in accordance with any permission or acknowledgement granted or in-contravention

of any condition subject to which such permission has been granted; or

(c)

after the permission or acknowledgement for development has been duly revoked; or

(d)

in-contravention of any permission which has been duly modified; or

(e)

in violation of Section 6 or Section 9;

shall be punishable with a fine upto one lakh rupees, and in the case of a continuing offence with a further

daily fine which may extend to five thousand rupees for everyday during which such offence continues

after conviction for the first commission of the offence.

(2)

Any person, who, whether at his own instance or at the instance of any other person willfully

provides false or fraudulent information to the District or State Nodal agency, shall be punishable

with fine upto one lakh rupees.

(3)

Any person who violates the provisions of law for which the Acknowledgement Certificate is considered

as 'approval' under sub-section (1) of Section 6, shall be punishable in accordance with the penalty

provisions of the relevant Act.

15.

Power to make rules :

(1)

The State Government may, by notification in the Official Gazette, make rules for carrying out the

provisions of this Ordinance.

(2)

In particular and without prejudice to the generality of the foregoing, such rules may provide for-

(a)

the form and manner of filing the Declaration of Intent and the undertaking under Section 5;

(b)

the form of the Acknowledgment Certificate;

(c)

the procedure to be followed by the Nodal Agencies;

(d)

the form of self-certification for White and Green category industries under Section 8; and

(e)

any other matter which is to be, or may be, prescribed under this Ordinance.

(3)

All rules made under this Ordinance shall be laid, as soon as may be, before the Arunachal Pradesh

Legislative Assembly while it is in session, for a period of not less than fourteen days, and shall be

subject to such modifications as the Legislative Assembly may make.

16.

Power to remove difficulties :

(1)

If any difficulty arises in giving effect to the provisions of this Ordinance, the State Government may,

by order published in the Official Gazette, make such provisions not inconsistent with the provisions

of this Ordinance as may appear to it to be necessary for removing the difficulty:

Provided that no such order shall be made after the expiry of two years from the date of

commencement of this Ordinance.

(2)

Every order made under sub-section (1) shall, as soon as may be, be laid before the Arunachal

Pradesh Legislative Assembly.

17.

Power to amend Schedule :

The State Government, may by notification, add, delete, or otherwise modify the Schedule - I

as deemed fit.

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SCHEDULE - I

(See Section 2 (b))

Registrations, Licenses and Permissions that shall be covered by the Acknowledgement Certificate

Trade License

Registration under the Building and other construction workers Act, 1996

Legal Metrology Packaged Commodities (LMPC) Certificate and Dealer License or Repairer License

under the Legal Metrology Act, 2009

Trade Certificate from Transport Department.

Registration from Health Department./Drug License

NOC from Education Department.

Permit from Tourism Department.

Registration from Agriculture/Horticulture Department.

Registration with Food and Civil Supply Department.

10.

Contractor registration under the Contract Labour (Regulation and Abolition) Act, 1970

11.

Contractor Registration under the Inter-State Migrant Workmen Act,1979

Pige Ligu, IAS

Secretary to the

Government of Arunachal Pradesh,

Itanagar.

Published and printed by Directorate of Printing & Stationery, Naharlagun.—514/2026-DoP-250+Commissioner (Industries)-

20+Secy.(LAW)-20+Secy.(LA)-20-7-2026.

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