Mumbai: The government has relaxed licensing norms for location of industrial units in sub-urban limits of big cities by deleting rules governing locations under the Industries (Development and Regulation) Act 1951.

The union cabinet today gave its approval for removal of location restriction in setting up of industries by deleting the provisions governing location under the Act.

The provision that a proposed project shall not be located within 25 km from the periphery of the standard urban area limits of cities having a population of more than 10 lakh according to 1991 census, shall not henceforth apply to:

(a) electronics, computer software and printing industries and other non-polluting industries that may be notified from time to time;

(b) other industries provided they are located within industrial areas designated by the State Government(s) before 24 July 1991.

''Since grant of industrial licence for such projects is on the basis of recommendations of the state government and clearance from state pollution control board /ministry of environment and forests, the existing procedure of granting licence can be dispensed with,'' a government said in statement issued today.

''The provisions of the Act, amounts to an unnecessary hurdle in setting up of industries and needs to be done away with,'' information and broadcasting minister Priyaranjan Das Munshi said after a cabinet meeting. 

Earlier, the industries other than non-polluting electronics, computer software and printing were not allowed to be located within 25 km from the periphery of cities above population of one million.