Dear Seniors,

Please update on the Factories Act and BOCW Act regarding license obtaining for the casting yard.

We, the construction company, have completed registration under BOCW and acquired licenses for CLARA, PCB, and ISMW.

We are required to obtain a factory license for our casting yard where our construction activities, such as segments and structures, take place. Despite being registered under BOCW, is it mandatory to obtain a factory license for our casting yard?

Seeking all your valuable advice. Thanks in advance.

From India, New Delhi
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Dear Colleague,
The nature of Casting Yeard and defenition of " Manufacturing Process" under The Factories Act 1948 are the key deciding factor. If you employ 20 or more wokrers without the aid of Power or 10 or more workers with the aid of power and you involve in " Manufacturing" then YES you are a factory.

A casting yard is a place where concrete components like segments, boundary wall panels, casted, shifted to their stack yard, cured for the specific period and then shifted to the working site after they gain their required strength. This covers some or other part of the definition of manufacturing process as per Factories Act. In the factories Act,1948, according to section 2(k) defines manufacturing process as:- “Manufacturing process” means process for –(i) Making, altering, repairing, oiling, washing, cleaning, ornamenting, finishing, packing, breaking up, or otherwise treating or adapting any article or substance with a view to its use, ..

Hence it is suggested to have a discussion with Directorate of Industrial Safety and Health of your location and get more clarity, then apply for necessary license / approvals/ compliance as may be required.

From India, Chennai
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Dear CiteHR member John S. Peter,

Greetings.

Your question has been appropriately commented upon by our senior member Dr. P. Sivakumar that the work of a casting yard is covered under the 'manufacturing process' as defined in Section 2(k)(i) of The Factories Act 1948. However, it is seen from your query that the company is a contractor company as you have taken registration under BOCW Act, CLARA, PCB, and ISMW Acts. In view of this, it is to be seen from the NIT and contract agreements, etc., as to whether the casting yard has been provided by the Employer (i.e., Contract awarding company) and what are the terms and conditions of the same. Only then can an appropriate opinion be offered on your particular query.

Nonetheless, it may be clarified that the BOCW Act 1996 does not apply to factories.

For adequate and appropriate customized advice in confidence, you may send an individual request.

With regards to senior Dr. P. Sivakumar and all Experts of the CiteHR Forum.

Chandra Mani Lal Srivastava
Master Consultant 9315516083 Contract Management, Tender, Works, and Service Legal Expert. New Delhi/06.02.2022/6:23 pm

From India, New Delhi
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Sir,

Thanks for your inputs.

I just want to convey that as you said the principal employer doesn't provide us the land for constructing our casting yard.

We, the contractor, have identified the land for our precast yard, which is a temporary setup; hence, it was taken on lease. Here, we will construct our own segment for our projects, and we are not dealing with any stakeholders for sales activities. Once our project activities are completed, we will hand over the land to the lessor in the same condition.

The definition includes the segment activities.

BOCW Rule definition 2, subclause (ZY) — segment — includes a cast iron or precast concrete segmented structure formed to the curvature of the tunnel cross-section and used to support the ground surrounding the tunnel.

Hence, we have registered under BOCW for our construction activities. As per our tender, we may deal with different places, but our workmen and nature of work are covered under BOCW.

Therefore, the Factories Act 2k may not be implemented in this case.

But if there are any provisions regarding the same, please update, sir.

Thanks in advance, sir.

From India, New Delhi
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Just want to convey that as you said, the principal employer doesn't provide us with the land for constructing our casting yard.

https://techzpod.com/

https://get-mobdrovip.com

From India, Lucknow
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Dear CiteHR Member Wilmarzop-LKO,

The link provided in your comment is not relevant to the query posted by John Sebastian Peter. The link relates to downloading an app for entertainment. I am afraid such a link does not comply with the Rules of the CiteHR Forum. Kindly review your comment.

With due regards,
Chandra Mani Lal Srivastava
Master Consultant
New Delhi/08.02.2022/3:25 pm

From India, New Delhi
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Dear Mr. John S. Peter,

Thank you for your question posted on 6th Feb 2022 seeking clarification on the definition under Rule 2 (zy) regarding the term 'segment' under BOCW Central Rules, and the definition under Section 2(k) of The Factories Act 1948. After carefully considering both definitions in the specific context of their application, I will offer my opinion as follows:

1. Your company has obtained registration under the BOCW Act, and you believe that according to the definition in Rule 2(zy), the Casting Yard is part of construction work, and no additional license is required for the Casting Yard.

2. A close examination of the definition in Rule 2(zy) reveals that 'segment' is defined as a cast iron or "pre-cast" segmented structure. It is important to note that the rule specifies the term "pre-cast," indicating that the segmented structure should not be made on-site but should be a "pre-cast" structure used for construction activities. Therefore, the definition in Rule 2(zy) does not apply to the Casting Yard where activities involve "preparing casted segments."

3. Given that the activity of preparing/making a casting segment falls under the definition of "manufacturing process" as defined in Section 2(k) of The Factories Act 1948, it would be advisable to comply with the directives of the Factories Inspector and obtain a license under the Factories Act for the Casting Yard.

4. If your company chooses not to comply with the directives of the Factories Inspector, an appeal can be filed before the Chief Inspector or the designated authority.

I trust this response adequately addresses your query. While you may disagree with my opinion, the final decision will rest with the Competent Authority in case of an appeal. I would appreciate your validation if you feel I have made a fair attempt to address your concerns.

With regards and best wishes,
Chandra Mani Lal Srivastava
Master Consultant
Contract Management, Tender, Works, And Service Laws Expert
New Delhi
11.02.2022
00:01 hrs

From India, New Delhi
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Dear Sir,

Thanks for your valid response.

https://www.helplinelaw.com/recent-j...-act-1996.html

https://www.scconline.com/blog/post/...cess-act-1996/

Request to validate the above link for my understanding, please do the needful, sir.

Thanks & Regards,
John Peter S

From India, New Delhi
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