IDRA,1951 Industrial Development Regulation Act 

• Passed in 1951 to implement the IPR,1948 (Industrial Policy Resolution)

• --the IPR had laid down the national objectives to be achieved

• --for this the Govt. must have the power to direct, regulate, and control industrial investment, location, expansion, management, growth, etc.

• This Act empowered the Govt.:·   To make rules for registration of existing

industries·    License all new undertakings· Rules for regulating production & development of industries in the ‘Schedule’·  Consultation with state govts. on these matters.·  Act provided for constitution of a Central Advisory Council & Development Councils.

COVERAGE OF THE ACT:

• The whole of India and to all factories manufacturing any item in the Ist Schedule to the Act.

• Exemptions: by the GOI. By official Gazette notification

• CENTRAL ADVISORY COUNCIL & DEVELOPMENT COUNCILS:

• CAC:·  By GOI to advise on matters of development and regulation of Sch.inds.·    Chairman and all members to be appointed by GOI·    Max.number of members = 30· To represent interests of owners, employees, consumers, primary suppliers etc., of the sch.industries ·    Also sub committees of the CAC

• DEVELOPMENT COUNCIL: May perform any of the following:

· Recommending targets for production, co-coordinating production programmes, and reviewing progress

·   Suggesting efficiency norms·   Measures for max.utilization of installed capacity·        Better marketing and distribution·        Standardization of products·        Distribution of controlled materials·        Work study, O&M study etc.·        Training and re-training of workers

• Scientific and industrial research ( also industrial psychology)

·     Standardization of accounting and costing methods

·       Statistics·     Decentralization and subcontracting—

for SSIs

REGULATION OF SCHEDULED INDUSTRIES

• Registration of Existing Undertakings: • Incl. PSUs

• + get certificate with installed capacity and other details

2.     Industrial Licensing:• All new units will require a license • For this there will be Licensing Committee.• 5 types of licenses: -

·       for new undertakings·       substantial expansion·       production of new articles ·       change in location·       carrying on business(COB)

• Govt. may give exemption, revoke or amend the license

Objectives of Licensing·    achieve desired pattern of dispersal of

industries· encourage new entrepreneurs and avoid concentration of ec.power·     promote SSIs·     regulate foreign capital and technology·  ensure proper use of technology and scale economies·     control industrial pollution·     ensure adequate supply of goods·     employment generation

• 3.   Power to Investigate, exercise control, take over management: (even sold)

• --If unjustifiable fall in output, or in quality or rise in price

• --such order to have effect for max. 5years—may be extended (upto max 12 years).

• 4. Power to provide relief to certain industrial undertakings:

--where management control has been taken over by Govt.

• --validity: 1 year – may be extended (upto 8yrs)• May suspend the applicability of provisions Acts like Indl

Disputes Act, MW Act or any contract/agreement in force at the time of take over.

5.     Price and Distribution Controls:

• LICENSE:• A written permission from GOI to

manufacture specified articles in the Schedule• --contains particulars: name, location,

articles to be manufactured, capacity etc.• --if the application is approved and no further

clearances required: then Industrial License