Industries Development &

regulation Act- 1951

Presented by,
Team Dazzlers
 Introduction
 An Act to provide for the development and regulation of certain industries

 The Industries (Development and Regulation) Act, (IDRA), came into force
from 8th May 1952 under a notification of the Central Government
published in the Gazette of India.

 The Act extends to whole of India including the state of Jammu & Kashmir

 The act provides wide powers to the Govt. of India in relation to regulation
on industries.
 Objectives

 To implement the industrial policy

 To look after the regulation and development of important industries

 Planning and Future Development of New Undertakings

 Council Board
Central Advisory Council:
Establish under section-5 a council for the purpose of advising the Govt. on
the issues of development and regulation of the scheduled industry, in a
process of making of rules under the act and the overall administration of
the act.

Development Council:
Establish under section-6 for any scheduled industry or a group of
industries a body of persons to be called a Development Council.
 Functions of the Council
 Development Council which shall consist of members who in the opinion of
the Central Government
 Promoting arrangements for better marketing
 Commanding targets of production, coordinating production programmes
and reviewing progress from time to time
 Advising on any matter relating to the industry
 Suggesting norms of efficiency with a view to eliminating waste, obtaining
maximum production, improving quality and reducing costs
 Features
 Existing undertakings need to be registered with the Government within the
prescribed time limit

 New units are permitted only through an industrial license

 Government has the power to conduct an investigation, assume

management control provide relief or control supply and distribution of
products of certain industrial undertakings.

 To change the location of the unit.

 Licensing (Section11-A)

It is required for-
 To set-up a new unit
 Manufacturing a new article
 Licence for Shifting Location
 Licence to carry on Business
 Licence of effecting Substantial Expansion
 Power of Central Government
 Fix the standard of production

 Prohibit any practice which reduce there production

 Power to take over management or control

 Take over without investigation

 Control supply and price of certain articles

 Sector open to foreign
Investors.
• Hotel & tourism
• Advertising Sector
• Insurance sector
• Telecommunication
• Power sector with approval
• Film Industry
• Drugs & Pharmaceuticals
 List of Industries reserved for Public
Sector
 Arms and ammunition and allied of defense equipment
 Atomic Energy
 Mineral Oils
 Railway Transport
 Industrial License is compulsory

 Alcoholic drinks
 Cigar and Cigarettes of tobacco
 Defense equipment
 Hazardous chemicals
 Drugs and pharmaceutics
 Industries
 Electrical Equipment
 Telecommunication
 Transportation
 Agricultural Machinery
 Earth Moving Machinery
 Medical & Surgical Appliances
 Chemical
 Textile
 Sugar
 Defence Industries
 Iron & Steel
 Penalties
Where any person failure on-
 Provision sec10(1)- Failure to get Registration
 Failure to obtain License for manufacture new article
 Failure to comply direction u/s 16 after investigation

The Act contains penalties for contravention of the provisions of the Act and
for making false statement by any person under the provisions of the Act

These contravention attract imprisonment up to 6 months or fine extending

up to Rs.5000/-
 Reference

• https://india.gov.in/industries-development-and-regulation-act-
1951-1

• http://www.yourarticlelibrary.com/business/the-industries-
development-and-regulation-act-of-india-1951-summary/23402/
Thank You