Section 6 in Andhra Pradesh Distillery (Manufacture of Indian made Foreign Liquor other than Beer and Wine) Rules, 2006
6. Grant of Licence.
(1)The holder of letter of intent shall obtain licence from the Commissioner with in six months from the date of sanction of the Government in the form of Letter of Intent referred to in Rule 5(c).(2)The holder of letter of intent shall apply in Form-DM(l)(A) and the application shall be accompanied by:(a)Copy of the sanction (Letter of Intent) accorded by the Government.(b)Description and plans for the construction of the proposed manufactory.(c)Statement of plant and machinery proposed to be erected.(d)'No Objection Certificate' from the local body competent to issue.(e)'No Objection Certificate' from the competent authority under Factories Act, 1948.(f)Clearance Certificate from the A.P.Pollution Control Board*(g)An undertaking in the prescribed form on a non-judicial stamp paper of the requisite value as per the Indian Stamp Act binding himself that he shall erect the plant and machinery as per the standards, as may be prescribed by the Commissioner from time to time for maintaining the specifications and quality of products.(h)Counterpart Agreement in Form-DM(l)(C).(3)No licence shall be granted unless the applicant deposits Rs. 10 Lakhs in the shape of a cash deposit or fixed deposit receipt or Bank guarantee from any scheduled bank situated in Andhra Pradesh as a security for fulfillment of all the conditions of licence and enter into a counterpart agreement in Form-DM(l)(C).(4)(a)Where the Commissioner is satisfied that the applicant for a new manufactory has fulfilled the conditions specified in sub-rules (1) to (3) above, he may grant a licence to the applicant in Form DM-2(M)/DM-2(G)/DM-2(MGO) as the case may be.(b)The license fee for a new manufactory shall be Rs. 20,000/-(Rupees twenty thousand only) per annum till the commencement of production or expiry of two years period from the issue of letter of intent which even is earlier.(c)Where the Commissioner is satisfied that the applicant for expansion of production capacity of an existing manufactory has fulfilled the conditions specified in sub-rules (1) to (3) above, he may endorse the sanction of expansion on the existing licence.(5)The licensee shall, before expiry of two years from the date of grant of letter of intent, report to the Commissioner, the date on which the construction or expansion of manufactory is completed and the date from which its working is commenced.(6)In case the licensee fails to construct or expand and work the manufactory before expiry of two years from the date of grant of letter of intent, the new licence or the expansion sanctioned under sub-rule 4(a) or 4(c) as the case may be shall be liable for cancellation without compensation for any damage.
