The Industries (Development and Regulation) Act 1951

Sec-10
Section 10 of the act makes the registration of the all the industrial undertaking. after that Govt. should issue Certificate of registration. The Govt. should Consider in Certificate of registration1-The productive or Installed Capacity 2-Level of production immediately before three years. 3-Export factor

Revocation of Registration Section 10A If it has obtain by misrepresentation Who Require Licence Every existing industrial undertaking (Not being Central Govt.) in the private sector require licence

When Registration is not Necessary

1- Small Scale Industry 2-otherwise exempt from he license 3-not cover in definition of Factory 100%EOU/SEZ

Industrial Licence

An industrial Licence is a written permission from the Govt. to an industrial undertaking to manufacture specified articles listed in First schedule and includes particulars of industrial undertaking, its location ,article to be manufactured the capacity on the basis of maximum utilization of plant & machinery etc.

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

Power of Govt. to Investigation

Sec-15 The Central Govt. may make investigation in respect of any Industrial undertaking1-If there has been substantial fall in volume of production for which there is no justification. 2 if there has been marked deterioration in the quality of the articles for which there is no justification. 3 if there has been rise in the price without justification. 4if working against public interest. 5-in case of company Liquidation

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

Power to take management of the undertaking by Central Govt. Sec-18A

Where central govt. is of opinion that1-Not comply direction u/s-16 2-managed against public interest

Power to take IU without Investigation 18 AA

1-The person of the IU have by reckless investment or creation of the in cumbrances on the assets of the IU 2-Close for a period more than 3 months

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

Cancellation of contracts in bad faith(18c) No compensation to terminated directors(18D) Application of Companies Act 1956(winding up)

Take over of IU owned by Company in Liquidation Sec-18FA

After the necessary investigation have been made u/s 15A the Central Govt. is of the opinion that there are possibilities of running or restarting IU, and the Central Govt. is further satisfied that the IU should be run for maintaing or increasing the production, supply or distribution of articles needed by the general public. Then application to high court & after that High Court shall order to central Govt.to appoint any person or body to take over the management. which should not be exceeding more than 5 years.

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)

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

Power to Exempt in Certain Cases (Section 29-B)

Some condition such 1- The smallness of the number of worker employed 2-Amount invested in the IU 3-Desiirability of encouraging small IU

Industrial Licensing PolicyLocational Policy

IU are free to select location of the project. however in the case of cities with population more than one million the proposed location should be at least more than 25 KM away or it should be located in Industrial area. Industries related to electronic , computer software and printing are exempt from such restriction.

Policy Regarding Foreign Investment

Approval will be given for upto 51% investment Payment of dividend should be monitored by RBI To provide access international market In SSI 24 % allowed foreign Investment

Other 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 Licence is compulsory

Alcoholic drinks Cigar and Cigarettes of tobacco Defence equipment Hazardous chemicals Drugs and pharmaceutics