The State Government, or, subject to its control, the Deputy Commissioner, may grant licences for the possession of denatured spirit, rectified spirit, and alcohol for industrial or medicinal purposes, if such spirit or alcohol is, in the opinion of the State Government or the Deputy Commissioner, as the case may be, necessary for scientific, industrial, medicinal or similar purposes:
Provided that no licence shall be necessary for the possession of denatured spirit to the extent of such quantity as may be prescribed by rules.