PESO License to Manufacturer AN or Convert AN from melt to solid - Procedure, Documents Required, Fee Charges, and Validity

Updated on January 24, 2025 10:51:11 AM

PESO (Petroleum and Explosives Safety Organization) is the statutory body of India that governs manufacture, storage and usage of any explosive products in the region. One such product influencing PESO is ammonium nitrate (AN), which is used primarily in the manufacture of explosives, mostly in mining, construction, and demolition. Considering the significance of obtaining PESO itself and due to the highly sensitive and hazardous nature of AN, the manufacturing of AN and the process of solidifying the molten ammonium nitrate require a license. This license ensures that national safety standards are observed within the company and that the company fully complys with rules and regulations aimed at reducing the probability of the occurrence of accidents, explosions, or other natural disasters.

PESO licensing for AN manufacturing has several stringent conditions, including safety conditions, qualifications of personnel engaged in the process, as well as site plan and safety measures highlighted. Applicants must complete a registration form and documents, such as safety training certificates and site surveys, and may require the relevant No Objection Certificates from the relevant authorities. It is important to adhere to the regulations of PESO so as not to be on the wrong side of the law and have operations paralyzed, and worse still, endanger workers and the environment. This page will explain the basic concept of PESO licensing to AN Manufacturing and a step-by-step process of how to acquire this license and the requirement to follow certain regulations to handle this explosive safely.

What is a PESO license?

A PESO license is an essential license needed to store, transport, use, and handle petroleum, explosives, and compressed gasses in India. The organization is under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

Thus, the PESO license covers mandatory requirements for assessing safety standards laid down in the Petroleum Act of 1934, the Explosives Act of 1884, and the Gas Cylinders Rules of 2004. It is compulsory to industries, gas agencies, fuel stations, and even persons who deal in LPG, CNG, petroleum products fireworks, etc.

In order to obtain a license, one is supposed to fill out an application, in which details are entered on PESO’s official site, and these include the type of substance, facility, and measures being taken. When it comes to setup, the application is followed by inspections and approvals to ensure that setup complies with the safety standards meant to prevent risks such as fire, explosion, and harm to the environment.

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Benefits of PESO License to Manufacturer AN or Convert AN from melt to solid

The PESO license for manufacturing ammonium nitrate (AN) or converting AN from molten to solid form offers several benefits, such as:

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Procedure to obtain PESO License to Manufacturer AN or Convert AN from melt to solid

To obtain a PESO license to manufacture ammonium nitrate (AN) or convert AN from melt to solid in India, certain steps need to be followed to get passed through various safety and environmental issues in the country. Here’s a step-by-step procedure:

Step 1: Determine the Type of License Needed

  • Petroleum License: For storage, distribution, and handling of petroleum products.
  • Explosive License: For manufacturing, storage, and handling of explosive substances.
  • Compressed Gas License: For storage and handling of compressed gases.

Step 2: Prepare Required Documents

Typical documents include:

  • Application form: Available from PESO or its regional offices.
  • Proof of identity and address.
  • Site plan/layout.
  • No Objection Certificate (NOC): From local authorities.
  • Details of safety measures and equipment.
  • Technical qualifications of the responsible personnel.

Step 3: Submit Application

  • Online: Through the PESO online portal (if available) or the Ministry of Commerce and Industry’s website.
  • Offline: Submit the application form and documents to the nearest PESO regional office.

Step 4: Inspection

  • The PESO officials will visit the site to ascertain levels of compliance with safety regulations and requirements.
  • The report of the inspection shall form part of the assessment.

Step 5: Fee Payment

  • Submit the appropriate fee as is mentioned in the fee structure of PESO. The fee of the service is dependent on the type and nature of the license being sought.

Step 6: Review and Approval

  • All the submitted papers containing the application documents along with the report following the inspection conducted through PESO shall be delved into.
  • If all papers are correct, then the license will be issued.

Step 7: Issuance of License

  • Once the license is approved, PESO will be the one to grant it.
  • The license may have certain stipulations that make it renewable after specific durations and may contain compliance checkups.

Step 8: Compliance

  • Comply with all the safety and operation requirements provided by the license and regulation.
  • The compliance checks as well as inspection may be carried out by PESO on a regular basis.
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Documents Required for PESO License to Manufacturer AN or Convert AN from melt to solid

To obtain a PESO license to manufacturer AN or convert AN from melt to solid, the following documents are typically required:

  • Application Form
  • Identity and Address Proofs of the Applicant
  • Recent Passport-size Photographs
  • Affidavit with Proper Notarization
  • Manufacturing Process Description
  • Safety Assessment Report
  • Fire Safety Measures Documentation
  • NOC from Local Authorities (if applicable)
  • Proof of Ownership or Lease Agreement for the Manufacturing Facility
  • Material Safety Data Sheets (MSDS) for Ammonium Nitrate
  • List of Equipment and Machinery Used
  • Emergency Response Plan
  • ISO Certification (if applicable)
  • Details of Storage and Handling Procedures
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Fee Charges for PESO License to Manufacturer AN or Convert AN from melt to solid

The government fees for a Petroleum and Explosive Safety Organization (PESO) license are:

  • Initial Approval: 1,000 rupees
  • Grant of License: 20,000 rupees
  • Amendment: 1,000 rupees
  • Revalidation of License (renewal): 20,000 rupees

Note: Professional fee charges for PESO license is @₹49,000

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Validity of PESO License to Manufacturer AN or Convert AN from melt to solid

PESO License to Manufacturer AN or Convert AN from melt to solid can be obtained from the Petroleum and Explosives Safety Organisation (PESO), and this license is issued for a period of 3 years and can be renewed every 3 years. The renewal application has to be made in the manner as prescribed under Rule 165 of the Explosives Rules, 2008.

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Conclusion

It is important for industries involved in manufacturing or handling explosives, such as ammonium nitrate (AN), to have a PESO license for manufacturing AN or for converting molten AN into a solidified form. This license also requires compliance with high safety measures and regulatory requirements, thereby minimizing dangers related to working with dangerous substances exposed to the public. With the PESO license in place, manufacturers can safeguard their employees, tools, and the planet and, at the same time, increase their appeal to the public. This way compliance checks and renewals are normal affairs with continuous safety and legal conformity leading to smoother and safer operations of explosive-related concerns.

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Frequently Asked Questions

Why is the PESO license required for manufacturing ammonium nitrate (AN)?

A PESO license is a safety clearance that is provided by the PESO in India for handling petroleum products as well as explosives. It is necessary in the production of ammonium nitrate (AN) or during the AN solidification process in order to meet national standard policies and avoid high risks that are associated with handling explosives.

What are the benefits of obtaining a PESO license for AN manufacturing?

Advantages include safety compliance, legal requirements, reduction of risks, operational effectiveness, and credibility in the market. Aside from adjusting prices to their target level, a license holder under PESO is also safeguarded from legal consequences as well as compliance with their necessary manufacturing guidelines.

What documents are needed to apply for a PESO license for AN manufacturing?

These documents consist of an application form, identity and address proof, a site plan or layout plan, NOC from municipal / local bodies, safety assessment reports, technical qualifications of the personnel, and an application related to fire safety measures.

What is the procedure to obtain a PESO license for manufacturing AN?

It entails selecting a license type, obtaining relevant documents, filling out a license application, a physical assessment of the site by PESO officials, payment of the requisite fee, and waiting for the approval of the license. Once approval is granted, then the license is issued

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