MADE BY

MAMTA
CONTENT
 DEFINATION
 OBJECTIVE
 LEGISLATIVE FRAMEWORK

CRITICISMS
DEFINATION
A licence is a written permission
issued by the center government
to an industrial undertaking
stating such details as the
location,the article to be
manufactured,production capacity
and other relevant paticulers.
OBJECTIVE
 To limit industrial capacity within
the targets set by the plans.
 To direct investment in
industries according to plan
priorities.
 To regulate the location of units.
 To secure the regional balance
 To prevent monopoly and concentration of
wealth.
 To protect small-scale industries against
undue competition from larger ones.
 To foster technology and economic
improvements in industry .
 To encourage new entrepreneurs to start
industrial units,thus broadening the
entrepreneurial base.
LEGISLATIVE FRAMEWORK
 Industrial Act,1951
1.Implementation of industrial policy.
2.Regulation and development of
important industries.
3.Planning and future development of
new undertaking
CRITICISMS
 It gives an exaggerated picture of
industrial capacity which scares away
genuine entrepreneur.
 The process of consideration of
application at various level and at
various times leads to delays and high
cost without improving the feasibility of
project.
 An excessive pressure is exaggerated on the
available foreign exchange and possible
collaboration and also on domestic suppliers.
 There is very little follow-up of licensing to

see that the approved project fructify in a

satisfactory phased schedule.
 Private sector was allowed to usurp areas

reserved for public sector as per 1956 Act.

 The term lending financial institutes
preferred the private sector for lending
financial assistance.
 Wasteful utilization of resources by public

sector
 Theeconomic reforms from
1990 made licensing
irrelevent.today it is
required only for 6
industries.
THANK YOU