idract 1951
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Industrial Development and
Regulation Act
• By R.Suresh
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Introduction
• Growth of the industrial sector at a higher
rate and on a sustained basis is a major
determinant of a country's overall economic
development. In this regard, the
Government of India has issued industrial
policies, from time to time, to facilitate andfoster the growth of Indian industry and
maintain its productivity and
competitiveness in the world market.
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Objectives
• The main objectives of the Act is to empower the
Government:- (i) to take necessary steps for the
development of industries; (ii) to regulate the pattern and direction of industrial development;
(iii) to control the activities, performance and
results of industrial undertakings in the public
interest. The Act applies to the 'ScheduledIndustries' listed in the First Schedule of the Act.
However, small scale industrial undertakings and
ancillary units are exempted from the provisions
of this Act.
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Objectives
• The Act is administered by the Ministry of
Industries & Commerce through its Department of
Industrial policy and promotion. The DIPP isresponsible for formulation and implementation of
promotional and developmental measures for
growth of the industrial sector. It monitors the
industrial growth and production, in general, andselected industrial sectors, such as cement, paper
and pulp, leather, tyre and rubber, light electrical
industries, consumer goods, consumer durables,
light machine tools etc..
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IDRA….
• In particular its also responsible for
facilitating and increasing the foreign direct
investment (FDI) inflow into the country aswell as for encouraging acquisition of
technological capability in various sectors
of the industry.
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Provisions of the Act
• Establishment of a 'Central Advisory
Council' for the purpose of advising the
Central Government on matters concerningthe development of the industries, making
of any rules and any other matter connected
with the administration of the Act. Itsmembers shall consist of representatives of
the owners of industrial undertaking,
employees, consumers, primary suppliers,
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Main provisions of the Act
• Establishment of a 'Development Council'
for the purpose of development of any
scheduled industry or group of scheduledindustries. This council shall consist of the
members representing the interests of the
owners, employees, consumers, etc. and persons having special knowledge of
matters relating to the technical or other
aspects of the industries.
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Main provisions of the Act
• The development council shall perform the following
functions assigned to it by the Central Government:- (i)
recommending targets for production, co-ordinating
production programmes and reviewing progress from time
to time. (ii) suggesting norms of efficiency with a view to
eliminating waste, obtaining maximum production,
improving quality and reducing costs. (iii) recommending
measures for securing the fuller utilisation of the installedcapacity and for improving the working of the industry,
particularly of the less efficient units
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Main provisions of the Act
• promoting arrangements for better
marketing and helping in the devising of a
system of distribution and sale of the produce of the industry which would be
satisfactory to the consumer. (v) promoting
the training of persons engaged or proposing engagement in the industry and
their education in technical or artistic
subjects relevant thereto, etc.
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Licensing
• The IDRA empowers the Central
Government to regulate the development of
industries by means of licensing withsuitable exemptions as decided by the
Government. Accordingly, the entry into a
business or the expansion of an existing business may be regulated by licensing
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Licensing
• A licence is a written permission from the
Government to an industrial undertaking to
manufacture specified articles included inthe Schedule to the Act. It contains
particulars of the industrial undertaking, its
location, the articles to be manufactured, itscapacity on the basis of the maximum
utilisation of plant and machinery, and other
appropriate conditions which are
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IDRA…
• The power of control entrusted to the Central
Government under the Act extends to that of the
take over of the management of the whole or any part of an industrial undertaking which fails to
comply with any of the directions mentioned
above. The Government can also take over the
management of an undertaking which is beingmanaged in a manner highly detrimental to the
scheduled industry concerned or to the public
interest
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IDRA…
• Further, the Central government can take
over the management of industrial
undertaking owned by a company under liquidation, with the permission of the High
Court, if the Government is of the opinion
that the running or restarting the operationsof such an undertaking is necessary for the
maintaining or increasing the production,
supply or distribution in the public interest
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IDRA..
• In today's scenario, only 6 categories of
industries require industrial licensing under
the Industries (Development andRegulation) Act, 1951 (IDRA). Such
industries file an Industrial Entrepreneur
Memoranda (IEM) with the Secretariat of Industrial Assistance (SIA),Department of
Industrial Policy and Promotion to obtain an
acknowledgement.
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Information Technoly Act 2000
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Introduction
• Digital Technology and new communication
systems have made dramatic changes in our lives.
• We are all increasingly using computers to create,transmit and share information in the electronic
form instead of the traditional paper documents.
• A revolution is occuring in the way people
transact and also do business
• Business and consumers are increasingly using
computers to create,transmit and store
information instead of traditional paper.
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Introduction
• It is cheaper,easier to store ,retrieve and
speedier to communicate….earlier post
cards, inland letters etc
• Although people are aware of these
advantages ,they are reluctant to conduct
business or conclude any transaction in theelectronic form due to lack of appropriate
legal framework.
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Introduction
• Two principal hurdles which stand in the
way of facilitating elctronic commerce and
electronic governance are the requirementsas to writing and signature for legal
recognition.
• The Law of evidence is traditionally basedupon paper based records and oral
testimony.
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Introduction
• Since electronic commerce eliminates the
need for paper based transactions,hence to
facilitate e commerce, the need for legalchanges have become an urgent
necessity.International trade through the
medium of e commerce is growing rapidlyin the last few years and many countries
have switched over from traditional paper
based commerce to e commerce.
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Introduction
• The united nations commission on
International Trade Law…adopted the
model law on electronic commerce in 1996.
• The General assemble of UN IN 1997
recommended that all states should have or
give favourable considerations to the saidmodel.when they act or revise their laws.
• Changes expected in IPC, IEA etc..to provide for
necessary changes in the various provisions
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Introduction
• Which deal with offences relating to
documents and paper transactions.
Electronic fund transfers, give legal sanctityfor books of account to be maintained in the
electronic form by banks.
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Information Technology Act 2000
• An act to provide for transactions carried
out by means of electronic data interchange
and other means of elctroniccommunication , commonly referred to as
Electronic commerce which involve the use
of alternatives to paper based methods of communication with the Government
agencies and further to amend the Indian
Penal code the Indian Evidence act
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Some definitions
• The Bankers Book evidence act 1891(for
maintianng records) and the Reserve bank
of India act 1934.
• Communication device – means all cell
phones ,personal digital assistance or
combination of both or any other deviseused to communicate,send transmit any text,
video, audio or image
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Some definitions..
• Cyber café…means any facility from where access
to the internet is ofered by any person in the
ordinary couse of business to the memebrs of the public..
• Cyber security means protecting information,
equipment ,devices, computer resources
.communication device and information stored
therein from unauthorised access disclosure
disruption modification or destruction
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Data
• Data means a representation of information
,knowledge,facts,concepts or instructions which
are being prepared or have been prepared in aformalised manner..and is intended to be
processed..in a computer system..and may in
anyform..including computer print outs,magnetic
or optical storage media ,punched cards ,punchedtapes etc or stored internally in the memeory of
the computer ..
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Digital Signature..
• Digital signature means authentication of
any electronic record by a subscriber by
means of an electronic method or procedure in accordance with the provisions
of section 3…
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Computer
• ‘Computer’ means any electronic, magnetic,
optical or other high speed data processing device
or system which performs logical, arithmetic andmemory functions by manipulations of electronic,
magnetic or optical impulses, and includes all
input, processing, storage, computer software or
communication facilities which are connected or related to the computer in a computer in a
computer system or computer network.
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Computer network
• ‘Computer network’ means the inter -
connection of one or more computers or
computer systems or communication devicethrough-
• The use of satellite, microware, terrestrial line wire, wireless or
other communication media; and
• Terminals or a complex consisting of two or more inter-
connected computers or communication device whether or not
the inter-connection is continuously maintained
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Computer resource
• ‘Computer resource’ means computer,
computer system, computer network, data,
computer data base or software.
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Electronic signature
• ‘Electronic signature’ means authentication
of any electronic record by a subscriber by
means of the electronic specified in theSecond Schedule and includes digital
signature.
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Section 3
• Digital signature and electronic signature..
• Any subscriber may authenticate an
electronic record by affixing his digital
signature.
• The authntication of the elctronic record
shall be effected by the use of asymmetriccrypto sytem and hash function which
envelop and tranform the initial elctronic
record into another electronic record
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