Govt abolishes licensing for ammonium nitrate fuel oil

The Department of Industrial Policy & Promotion (DIPP) has decided to abolish licensing of ammonium nitrate fuel oil (ANFO), used for blasting purpose in mines, for mine owners to improve efficiency of mining operations.
 
Ammonium nitrate fuel oil explosive is prepared by mixing ammonium nitrate with fuel oil in an aluminium or wooden tray with hand mixing and immediately charging into the bore holes in the adjacent quarry or mines for blasting. No packaging, storage, sale or transportation of ANFO is involved in the conventional manufacturing and using process. The licencees prepare ANFO for their own use and on the spot captive consumption for blasting purposes in metaliferous mines/quarries.
 
Ammonium nitrate fuel oil manufacturers are required to take licence for possession and use of blasting accessories viz booster, safety fuse, detonating fuse and detonators under Explosive Rules, 2008 for which a firm has to obtain no objection certificate (NOC) from district authorities and NOC from Director General of Mines Safety (DGMS). Monthly returns are filed by the licence holders under the Explosive Rules, 2008 to district authorities as well as Petroleum & Explosives Safety Organization (PESO). Monthly returns are also filed by them for use of ammonium nitrate returns under Ammonium Nitrate Rules, 2012.
 
The government advised ammonium nitrate fuel oil manufacturers in November 2013 to apply for industrial licence under Industries (Development & Regulation) Act, 1951. After issue of this advisory, the Department of Industrial Policy & Promotion (DIPP) received almost 300 applications for grant of industrial licence for manufacturing ANFO, which were under consideration in DIPP. Representations were received from stakeholders about hardship faced in getting licence under the provisions of Industries (Development & Regulation) Act, 1951 (IDR Act).
 
“The government after due consideration has decided that no licence under the IDR Act will be necessary by mine owners to manufacture ANFO explosives. This will help mine owners using ANFO to continue mining operations and will help the development of cement industry as well as the construction sector,” said a DIPP press release.