Section 79 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 79 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) empowers the appropriate Government to make rules on factory plans, prior permission for the site, construction or extension, and licensing and renewal. It adds a deemed permission if an electronic application is not answered within 30 days, and a 30 day appeal against refusal.
The appropriate Government may make rules for (a) submission of plans, specifications and certification, (b) previous permission for the site and for construction or extension, and (c) licensing and renewal, including fees, subject to section 119 (79(1)). If an application for site permission with plans is sent electronically and no order is communicated within a period not exceeding 30 days, the permission is deemed granted (79(2)). A refusal can be appealed within 30 days to the Central Government (if the State Government refused) or to the State Government (in any other case) (79(3)).
Section 79 at a glance
| Sub-section | Content |
|---|---|
| 79(1)(a) | Rules on submission of plans, including specifications, nature and certification |
| 79(1)(b) | Rules on previous permission for the site of a factory and for construction or extension |
| 79(1)(c) | Rules on licensing and renewal, including fees, subject to section 119 |
| 79(2) | Deemed permission if application under (b), with plans, sent in electronic mode, gets no order within the prescribed period not exceeding 30 days |
| 79(3) | Appeal within 30 days of refusal of site, construction, extension or licence |
| Explanation | Replacing plant or machinery, or adding it within prescribed limits, is not an extension if it does not reduce minimum clear space for safe working or worsen the environment |
Who makes the rules
The text says the appropriate Government makes the rules for a factory "or class or description of factories". Where the State Government is the appropriate Government, the State's factory and OSH rules carry the detail, including the forms, fees and periods. See section 2(1)(d) for who is the appropriate Government. A factory is defined in section 2; see our article.
Section 79(1): three rule-making heads
(a) Plans. Rules can require plans including specifications to be submitted, and can set their nature and certification. This allows, for instance, a requirement that a competent person certifies the plan. The Code does not name who certifies.
(b) Site, construction and extension. The rules can require previous permission for the site on which the factory is to be situated and for its construction or extension. That is a pre-approval before you build.
(c) Licensing and renewal. The rules can provide for licensing and renewal, including fees, "if required", and subject to section 119, the common licence provision explained in our article on section 119.
If you are planning a new unit or expansion, getting the permission path right before construction avoids stoppages; our labour law compliance team can map the steps with you.
Section 79(2): deemed permission
This is the ease-of-doing-business clause. If an application for permission under 79(1)(b):
- is accompanied by the plans and specifications required by the rules made under 79(1)(a), and
- is sent to the State Government or the Chief Inspector-cum-Facilitator in electronic mode, and
- no order is communicated to the applicant within the prescribed period, which cannot exceed 30 days,
then the permission applied for is deemed to have been granted.
Three cautions. First, the deemed permission applies to the site permission under clause (b), not automatically to licensing under clause (c). Second, the application must be complete with the required plans and specifications. Third, the period is whatever the rules prescribe, up to a maximum of 30 days. Keep proof of the electronic submission and its date.
Section 79(3): appeal
Where the State Government or a Chief Inspector-cum-Facilitator refuses permission for the site, construction or extension of a factory, and licensing of a factory, the applicant may, within 30 days of the refusal, appeal:
- to the Central Government, if the decision appealed from was of the State Government; and
- to the State Government in any other case, for example a refusal by the Chief Inspector-cum-Facilitator.
What is an extension: the Explanation
A factory is not deemed to be extended merely because of:
- the replacement of any plant or machinery; or
- within prescribed limits, the addition of any plant or machinery,
if the replacement or addition does not reduce the minimum clear space required for safe working around the plant or machinery and does not adversely affect environmental conditions from steam, heat, dust or fumes injurious to health. So routine machine swaps need no new permission, but a change that crowds the working space or worsens the air does count as an extension.
Central Rules, 2026
The Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026) apply where the Central Government is the appropriate Government. Section 79 leaves plans, site permission and factory licensing to the appropriate Government's rules, and this article does not rely on a Central Rule for them. Check your State's OSH or factory rules for forms, fees and periods. For the old-law procedures, see our guides on how to get a factory licence, documents required and factory licence renewal.
Practical points
- Do not build before permission. Apply for site and construction permission with complete plans first.
- Submit electronically and save the acknowledgment; the deemed permission clock depends on it.
- Note the State's period (not more than 30 days) and calendar the day after it ends.
- Appeal within 30 days of a refusal, and confirm which Government is the appellate one.
- Assess expansions: document that a machinery change keeps clear space and environmental conditions to rely on the Explanation.
- Check the licence step separately, as section 119 and State rules apply.
Example. A plastics unit wants to add a new shed. It sends the application and plans to the Chief Inspector-cum-Facilitator in electronic mode. The State rules give 30 days and no order arrives, so the permission is deemed granted on day 31. Later the unit only replaces an old moulding machine with a new one of similar footprint. Clear space is unchanged and there is no added fume, so the Explanation says it is not an extension.
Need help with factory approvals?
Permission, licence and expansion questions turn on dates and complete plans. Our labour law compliance team can prepare the submission, track the statutory period and advise on an appeal if permission is refused.
Key takeaways
- The appropriate Government may make rules on plans, site permission and licensing (79(1)).
- Electronic application with plans gets deemed permission if no order within the prescribed period, at most 30 days (79(2)).
- Refusal can be appealed within 30 days to the Central or State Government (79(3)).
- Replacing or adding machinery within limits is not an extension if clear space and environment are not affected.
Read next
- Section 119: common licence for factory, contractor and industrial premises
- Sections 80–81: owner of leased premises and power to apply Code to certain places
- Sections 82–83: dangerous operations and site appraisal committee
- How to get a factory licence in India
Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.