(1) If an industry wants to increase its existing capital or increase its capacity or to add or change or modify its purpose, it must submit an application in the prescribed format to the industry registration body for its approval.
(2) If, upon examination of the application received under sub-section (1), if the practice is found to be appropriate, the industry registration body shall complete the prescribed process and give approval within ninety days to increase the capital, increase the capacity, add to the purpose, change or modify such industry. If there is a change in the classification of the industry due to capital increase or capacity increase or purpose addition or change or modification, the related industry shall update the record and indicate it in the industry registration certificate.
(3) Notwithstanding anything written in sub-sections (1) and (2), small enterprises or domestic and small industries with fixed capital up to one million rupees that do not require permission shall not require the approval of the industry registration body for capital increase or capacity increase. However, if an environmental impact assessment or initial environmental test is required for such capital increase or capacity increase or purpose addition or change or modification, the report shall be approved in accordance with the prevailing law.
(4) An industry shall not be deemed to have increased its capacity if it produces more than the projected output by increasing the managerial efficiency without altering the existing equipment.