Forest Minister K.Sudhakaran told the Assembly that steps would be taken to cancel the licences of sandalwood factories in Kerala State which had been functioning without the permission of the Forest Department. Sudhakaran said that Palakkad Divisional Forest Officer had denied No Objection Certificate to Palakkad Western Industries and Walayar Rural Industries in February 2003. He said that the government had not given sanction to none of the sandalwood factories currently functioning in the State. The sandalwood factories also had to obtain working sanction from the respective panchayats and Factories and Boilers.