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The Industries (Development and Regulation) Act,1951

The Industries (Development and Regulation) Act ,1951 came into exist on 8th May, 1952.
It has been amended from time to time, the latest being in 1998.

The act provides wide powers to the Govt. of India in relation to regulation on industries. This act applicable to the whole of India including state of Jammu & Kashmir.

Objectives:  To implement the industrial policy To look after the regulation and development of important industries To plan the future development of new undertakings   .

The salient features of the IDR Act 1951 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.

employment.Definitions:  Central Govt. handicraft or industrial occupation or a vocation of a workman. trade.: Central Govt. undertaking.  . refers to “Government of India”. manufacturing or calling of employers or any calling service. Industry: The word industry has a wide meaning and it includes any business.

may be by notified order. on the issues of development and regulation of the scheduled industry. establish for any scheduled industry or a group of industries a body of persons to be called a Development Council. may. Development Council: The Central Govt. by notified order.Cont…   Central Advisory Council: The Central Govt. . establish a council for the purpose of advising the Govt. in a process of making of rules under the act and the overall administration of the act.

which may include the conditions such as the location.Licensing:  License is a written permission from the Govt. License is required for establishment of new industrial undertakings pertaining to a scheduled industry Expansion or diversification of an article by a scheduled industry Change of location of a licensed/registered undertaking Carrying on business of an industry which requires a license but which has not been licensed previously     . minimum size etc.

The registration of the existing Industrial Enterprises Licensing to new undertakings Investigation into the affairs of any Industrial undertakings Establishment of a Central Advisory Council Constitution of Central Advisory Council Establishment of a Development Council 1. 5.Provisions to the Act:  To attain the above said objectives. 6. 4. . 2. 3. the act confers very wide powers on the government in relation to industries.

A Certificate Of Registration. . containing product capacity of the industrial undertaking and other particulars as prescribed by central govt.Section-10  The registration of existing industrial enterprises Registration of industrial undertakings as per the notification in official gazette.

Small Scale Industry 2-otherwise exempt from the license 3-not cover in definition of Factory 100%EOU/SEZ .When Registration is not Necessary     1.

When is Licence Required      1-Licence for manufacturing of New Articles 2-Licence for carrying on Business without Registration 3-Licence of New undertaking 4-Licence for carrying on business after the revocation of certificate of registration 5-Licence for change in location .

Licencing to new undertakings (section 11) License for producing new articles  License for effecting substantial expansion  Licence for change in location  Licence for carrying on business without registration  Licence for carrying on benefits after the revocation of certificate of registration  .

if it finds that IU is not working satisfactorily and fails to arry out its instructions .Investigation into the affairs of any Industrial undertakings   Power to government to start an investigation into affairs of IU The government can even take the undertaking under its own management.

  . Making rules.Establishment of a central advisory council  The development and regulation of schedule industry. Administration of the act.

 .U. Person employed in I. capable of representing the interest of 1. industry 2. Of sch.Constitution of central advisory council A chairman and other members not exceeding 30  Members appointed by central govt.U. of sch. industry 3. Owner of I. Consumer of goods manufactured by industry.

Power of Central Government after Investigation Sec-16     1-fix the standard of production 2-to control the price 3-to take such step for development of the undertaking. 4-prohibit any practice which reduce there production .

Effect of notified order under section 18A    1-All person holding as a management position shall vacated the office 2-All contracts between IU and management shall be terminated 3-The person authorized by Govt. shall take the management of the IU .

Power of IDRA    Power of Inspection To take over the management of the Industrial Undertaking Give order for control the price and distribution of of certain articles(18G) .

3-failure to comply direction u/s 16 after investigation 4-any order u/s 18 G These contravention attract imprisionment upto 6 months or fine extending upto Rs.5000/ .Penalties Where any person failure on1-Provison sec10(1).Failure to get Registration 2-failure to obtain Licence for manufacture new article.

sector open to foreign Investors.        Hotel & tourism 51% Advertising Sector 74% Insurance sector26% 100%in power sector with approval Telecommunication 49% Film Industry100% Drugs & Pharmaceuticals 100% .

List of Industries reserved for public sector     Arms and ammunition and allied of defence equipment Atomic Energy Mineral Oils Railway Transport .

Industrial LicenSe is compulsory      Alcoholic drinks Cigar and Cigarettes of tobacco Defence equipment Hazardous chemicals Drugs and pharmaceutics .