Ammonium Nitrate Rules Amended: Fee Relief for MSMEs, Startups & Women Entrepreneurs

Introduction

The Ministry of Commerce and Industry has introduced significant amendments to the Ammonium Nitrate Rules, 2012 via the Ammonium Nitrate (Amendment) Rules, 2025, notified on June 9, 2025. The changes aim to promote inclusivity, reduce regulatory costs, and support ease of doing business for micro and small enterprises (MSEs), startups, and women entrepreneurs. By updating definitions and revising the Ammonium Nitrate Licensing Fees structure, the amendment helps streamline access to regulatory permissions in industries that use ammonium nitrate for manufacturing, storage, import, export, or transport.

Key Highlights of the Amendment

Applicability

These rules come into force immediately from the date of publication in the Official Gazette.

Definitions Added

Three important terms have been officially defined:

Micro and Small Enterprises (MSEs): As per MSMED Act, 2006
Startups: As defined by DPIIT, Ministry of Commerce and Industry
Women Entrepreneurs: A woman must own and control the enterprise with at least 26% capital ownership

Revised Licensing Fee Structure

The amended Rule 29 introduces a three-tier fee system based on the applicant category. Here is a breakdown:

Purpose	Standard Fee (₹)	MSEs / Startups (₹)	Women Entrepreneurs (₹)
Scrutiny for prior approval	1000	500	200
License to manufacture and store for sale	20,000/year	10,000/year	4000/year
License to store for sale	2000/year	1000/year	400/year
License to store for own use	1000/year	500/year	200/year
Import License	5000	2500	1000
Export License	5000	2500	1000
Bagging and storage license	20,000/year	10,000/year	4000/year
Transport License	2000/year	1000/year	400/year
License Amendment	1000	500	200

Special Provisions

Lower Fee for Women-Led Startups or MSMEs:
If a micro/small enterprise or startup is owned and controlled by a woman, the lowest applicable fee among the categories will apply.
Documentary Proof Required:
- MSE: Certificate from the Ministry of MSME
- Startup: Registration with DPIIT
- Woman Entrepreneur: Proof of proprietorship/directorship
False Claims Warning:
Any false or misleading information submitted will lead to license cancellation.

Positive Implications

Encourages more women and startups to enter regulated sectors
Reduces entry barriers for small and medium players
Ensures fair access to regulatory approvals
Simplifies fee structure for transparency and predictability

Conclusion

The Ammonium Nitrate (Amendment) Rules, 2025 reflect India’s commitment to a more inclusive, competitive, and transparent industrial framework. By empowering startups, MSEs, and women-led enterprises with reduced compliance costs, the government is enabling broader participation in ammonium nitrate-related sectors. Businesses should act quickly—verify eligibility, gather required documents, and take advantage of the new, lower licensing fees.

Download: Ammonium Nitrate Licensing Fees Reduced for MSMEs