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BMC Revises Factory Permit Fees and Environmental Scrutiny Rates for FY 2026-27


Issued by: Brihanmumbai Municipal Corporation (BMC) — Development Planning Department | 17 March 2026

Background

This circular is issued by the Brihanmumbai Municipal Corporation (BMC) to revise the schedule of fees related to factory permits and environmental scrutiny for the 2026-2027 financial year. In accordance with Municipal Resolution No. 925, passed in 2017, the BMC enforces an automatic 10% annual increase in existing fee rates every financial year beginning on April 1.

The primary intention of the authority is to systematically update licensing, renewal, and transfer fees to match current administrative costs, ensuring that all fractional fee calculations are rounded up to the next whole rupee. Furthermore, this circular establishes stringent timelines for fee payments. It clarifies the transition to a digitised, one-window system, thereby completely omitting the physical sale of application forms at the ward level.

 

Brihanmumbai Municipal Corporation officially notifies a 10% annual hike for factory licenses, transfers, and environmental screening charges effective April 1, 2026.


Factory Permissions are now issued through a one-window system and no forms are issued at ward level.

Chief Engineer (Development Planning) | 17 April 2026


Key Highlights

  • 10% Annual Increment: Applies a structural 10% fee hike rounded to the next whole rupee for all base license and environmental scrutiny fees.
  • Digitized Processing: Forms A, B, B-1, and C are permanently omitted as factory permissions are now processed via a single-window system.
  • Horsepower-Linked Costs: Environmental screening fees are calculated at? 57 per horsepower.
  • Strict Late Payment Penalties: Demanded fees attract a combined composition penalty starting at 30% (after 15 days) and escalating up to 100% (after 1 year).
  • Permit Cancellation Policy: Permanent factory licenses that remain unrenewed for 2 years post-expiry will be formally deemed cancelled.

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Opinion on FAQ related to circular

Q  

What is the key change introduced in this circular?

  A

The circular revises factory permit fees for 2026–2027 and introduces a single-window system for issuing permissions.

  A
No, as per the circular, permits are processed through a centralized system and forms are not issued at ward level.
  A
The revised fees are effective from 01.04.2026 (1st April 2026). Any Factory Permit application, renewal, transfer, or related transaction processed on or after this date will attract the revised FY 2026-27 fee schedule as notified in Schedule 'A' and Schedule 'B' of this circular.
  A
The penalty structure is graduated: Within 15 days of expiry: No compound fee. 15 days to 2 months: 10% of the renewal fee. 2 to 3 months: 15% of the renewal fee. 3 to 6 months: 20% of the renewal fee. Beyond 6 months within 1 year: 50% compound fee of the permit fee, plus 100% compound after that. Timely renewal is strongly advisable to avoid these escalating penalty charges.
  A
Yes. If a factory premises is being redeveloped and the occupier or ownership changes, a transfer fee is applicable under Sr. No. 3 of Schedule 'A'. Additionally, if the factory area or installed machinery HP increases after redevelopment, a fresh or amended Factory Permit will need to be obtained, attracting the applicable area-based and HP-based fees. Architects and developers should factor this into project planning. As Factory Permits are now processed through BMC's one-window system, the procedural pathway has been simplified — but the fee liability remains.

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