Nitiraj Engineers Gets GATC Approval, Expects Rs. 50 Lakh Annual Savings

3 min read     Updated on 13 May 2026, 07:56 AM
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Nitiraj Engineers Limited has received Government of India approval as a Government Approved Test Centre (GATC) under the Legal Metrology Act, 2009, for its Calibration Division in Dhule, Maharashtra, valid until 05th May 2027. The approval covers verification of non-automatic weighing instruments of Accuracy Class III (up to 150 kg) with a capacity of 2,600 per month. The development is expected to generate estimated annual savings of approximately Rs. 50 Lakhs through reduced external verification costs, improved turnaround times, and enhanced operational efficiency.

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Nitiraj Engineers Limited has secured approval from the Government of India as a Government Approved Test Centre (GATC) under Section 24 of the Legal Metrology Act, 2009. The approval was granted by the Ministry of Consumer Affairs, Food & Public Distribution, Department of Consumer Affairs, Legal Metrology Division. Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company disclosed that this development is expected to yield an estimated annual saving of approximately Rs. 50 Lakhs through reduction in external verification costs, logistics expenses, processing timelines, and operational efficiencies.

GATC Approval: Key Details

The certificate authorizes Nitiraj Engineers' Calibration Division, located at J25 & J26, M.I.D.C., Awadhan, Dhule, Maharashtra, Pin Code - 424006, to verify weighing instruments manufactured by the company. The following table summarizes the key parameters of the approval:

Parameter: Details
Certificate No.: IND/GATC/MH/26/27
Weights & Measures: Non-automatic weighing instruments of Accuracy Class III (up to 150 kg)
Verification Capacity: 2,600 per month
Approved Location: Dhule, Maharashtra
Validity: Up to 05th May 2027
Issuing Authority: Director (Legal Metrology), Government of India
Application No.: GATC/2025/38
Expected Annual Savings: Approximately Rs. 50 Lakhs

The certificate was signed by Ashutosh Agarwal, Director (Legal Metrology), Ministry of Consumer Affairs, Food & Public Distribution, Government of India, and a copy was forwarded to the Controller of Legal Metrology, Government of Maharashtra.

Operational and Financial Benefits

By virtue of the in-house government approved verification and calibration facility, Nitiraj Engineers anticipates significant operational and financial benefits. The approval is expected to deliver the following advantages:

  • Estimated annual saving of approximately Rs. 50 Lakhs through reduction in external verification costs and logistics expenses
  • Improved turnaround time for product dispatches
  • Enhanced operational efficiency
  • Strengthened quality control systems
  • Improved customer servicing capabilities

The company believes that this approval shall positively contribute towards operational profitability and efficiency in the coming financial years.

Conditions of the GATC Approval

The approval is subject to a comprehensive set of conditions prescribed by the Legal Metrology Division. Key obligations include:

  • The company must make its premises available for initial assessment, re-assessment, or inspection by the Director of Legal Metrology or authorized officers as required.
  • All instruments at the GATC must be calibrated with valid verification/calibration certificates and accuracies/uncertainties in line with Legal Metrology (General) Rules 2011 or OIML Recommendations; failure to comply may result in suspension of the GATC.
  • The GATC must obtain third-party liability insurance sufficient to cover any claims for damage arising from lapses or violations of government instructions.
  • The approval certificate must be displayed prominently at the premises where the GATC performs its functions.
  • Traceability of all weights and measures certified must be maintained, with records available in soft or hard form at the GATC and on the Legal Metrology portal.
  • Photographic or video evidence of the verification of each weight or measure must be maintained at the GATC and on the Legal Metrology portal.
  • The GATC approval is neither saleable, assignable, nor transferable.
  • Any change in the organisation or qualified persons must be reported immediately to the Director of Legal Metrology.
  • The company must apply for renewal of the approval well in advance of its expiry date.

Regulatory and Compliance Context

The approval is governed by the Legal Metrology Act, 2009, which regulates weights and measures in India to ensure accuracy and consumer protection. The Director of Legal Metrology retains the authority to suspend or revoke the GATC approval in the event of non-compliance with the Act, its rules, or any conditions of the approval, subject to providing the holder a reasonable opportunity to show cause. All conditions prescribed after the issuance of the approval are binding on Nitiraj Engineers. The disclosure was filed by Deepika Dalmiya, Company Secretary & Compliance Officer (M.No: A58029), on behalf of Nitiraj Engineers Limited.

Historical Stock Returns for Nitiraj Engineers

1 Day5 Days1 Month6 Months1 Year5 Years
-0.73%-1.06%-5.09%+5.97%-22.54%+221.06%

Could Nitiraj Engineers expand its GATC approval to cover higher accuracy classes or heavier weighing instruments beyond the current 150 kg Class III limit, and what would that mean for its competitive positioning?

How might the Rs. 50 Lakhs annual savings from in-house verification translate into margin improvement, and could this approval support the company in bidding for larger government or institutional contracts?

With the GATC approval valid only until May 2027, what operational risks could arise if the renewal is delayed or denied, and how dependent is the company's production pipeline on this facility?

1 Year Returns:-22.54%