industrial development and regulation act

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IndustriesIndustries

(Development(Development

andandRegulation)Regulation)

Act,1951 Act,1951PREPARED BY:PREPARED BY: Rajesh Dey PA1523Rajesh Dey PA1523

PRESENTED TO:PRESENTED TO: Ms. Bharthi ParekhMs. Bharthi Parekh



The Industries (Development andThe Industries (Development andRegulation) Act ,1951 came into existRegulation) Act ,1951 came into exist

on 8on 8thth

a!, 195"#a!, 195"#

It has $een amended %rom time toIt has $een amended %rom time totime, the latest $eing in 1998#time, the latest $eing in 1998#

The act provides &ide po&ers to theThe act provides &ide po&ers to the'ovt# o% India in relation to regulation'ovt# o% India in relation to regulation

on industries#on industries#

This act applica$le to the &hole o%This act applica$le to the &hole o%India including state o% ammu India including state o% ammu

*ashmir#*ashmir#



Objectives:Ob

jectives:

To implement the industrial polic!To implement the industrial polic!

To loo+ a%ter the regulation andTo loo+ a%ter the regulation anddevelopment o% important industriesdevelopment o% important industries

To plan the %uture development o%To plan the %uture development o%ne& underta+ingsne& underta+ings



The salient features of the IDR Act1951

xisting underta+ings need to $eregistered &ith the 'overnment &ithinthe prescri$ed time limit

-e& units are permitted onl! throughan industrial license

'overnment has the po&er to

conduct an investigation, assumemanagement control provide relie% orcontrol suppl! and distri$ution o%

products o% certain industrialunderta+in s#



Defnitions: De

fnitions:

.entral 'ovt#/.entral 'ovt#/ .entral 'ovt# re%ers to.entral 'ovt# re%ers to

0'overnment o% India#0'overnment o% India#

Industr!/Industr

!/ The &ord industr! has aThe &ord industr! has a

&ide meaning and it includes an!&ide meaning and it includes an!

$usiness, trade, underta+ing,$usiness, trade, underta+ing,

manu%acturing or calling o% emplo!ersmanu%acturing or calling o% emplo!ersor an! calling service, emplo!ment,or an! calling service, emplo!ment,

handicra%t or industrial occupation orhandicra%t or industrial occupation or

a vocation o% a &or+man#a vocation o% a &or+man#



Cont…Cont… .entral Advisor! .ouncil/.entral Adviso

r! .ouncil/ The .entralThe .entral

'ovt# ma! $e $! noti2ed order, esta$lish'ovt# ma! $e $! noti2ed order, esta$lisha council %or the purpose o% advising thea council %or the purpose o% advising the

'ovt# on the issues o% development and'ovt# on the issues o% development and

regulation o% the scheduled industr!, inregulation o% the scheduled industr!, in

a process o% ma+ing o% rules under thea process o% ma+ing o% rules under theact and the overall administration o% theact and the overall administration o% the

act#act#

Development .ouncil/Develo

pment .ouncil/ The .entral 'ovt#The .entral 'ovt#ma!, $! noti2ed order, esta$lish %or an!ma!, $! noti2ed order, esta$lish %or an!

scheduled industr! or a group o%scheduled industr! or a group o%

industries a $od! o% persons to $e calledindustries a $od! o% persons to $e called

aa Development Council Development Council##



Licensing: Licensing:

3icense is a &ritten permission %rom the3icense is a &ritten permission %rom the'ovt# &hich ma! include the conditions'ovt# &hich ma! include the conditionssuch as the location, minimum si4e etc#such as the location, minimum si4e etc#

License is required orLicense is required or esta$lishment o% ne& industrial underta+ingsesta$lishment o% ne& industrial underta+ingspertaining to a scheduled industr!pertaining to a scheduled industr!

xpansion or diversi2cation o% an article $! axpansion or diversi2cation o% an article $! ascheduled industr!scheduled industr!

.hange o% location o% a licensedregistered.hange o% location o% a licensedregisteredunderta+ingunderta+ing

.arr!ing on $usiness o% an industr! &hich.arr!ing on $usiness o% an industr! &hichre6uires a license $ut &hich has not $eenre6uires a license $ut &hich has not $eenlicensed previousl!licensed previousl!



Provisions to the Act: Provisions to the Act:

To attain the a$ove said o$7ectives, the actTo attain the a$ove said o$7ectives, the actcon%ers ver! &ide po&ers on the governmentcon%ers ver! &ide po&ers on the government

in relation to industries#in relation to industries#

1#1# The registration o% the existing IndustrialThe registration o% the existing Industrialnterprisesnterprises

"#"# 3icensing to ne& underta+ings3icensing to ne& underta+ings

## Investigation into the aairs o% an! IndustrialInvestigation into the aairs o% an! Industrial

underta+ingsunderta+ings

:#:# sta$lishment o% a .entral Advisor! .ouncilsta$lishment o% a .entral Advisor! .ouncil

5#5# .onstitution o% .entral Advisor! .ouncil.onstitution o% .entral Advisor! .ouncil

;#;# sta$lishment o% a Development .ouncilsta$lishment o% a Development .ouncil



Section-10Section-10

The registration o% existing industrialThe registration o% existing industrialenterprisesenterprises

Registration o% industrial underta+ingsRegistration o% industrial underta+ingsas per the noti2cation in oicial ga4ette#as per the noti2cation in oicial ga4ette#

A .erti2cate <% Registration, containing A .erti2cate <% Registration, containingproduct capacit! o% the industrialproduct capacit! o% the industrialunderta+ing and other particulars asunderta+ing and other particulars asprescri$ed $! central govt#prescri$ed $! central govt#

i i



Licencing to new Licencing to new

undertaingsundertaings

!section 11"!section 11" 3icense %or producing ne& articles3icense %or producing ne& articles 3icense %or eecting su$stantial3icense %or eecting su$stantial

expansionexpansion 3icence %or change in location3icence %or change in location 3icence %or carr!ing on $usiness3icence %or carr!ing on $usiness

&ithout registration&ithout registration

3icence %or carr!ing on $ene2ts3icence %or carr!ing on $ene2tsa%ter the revocation o% certi2catea%ter the revocation o% certi2cateo% registrationo% registration

#

i i i h



#nvestigation into the #nvestigation into the

a$airs o% an& #ndustria'a$airs o% an& #ndustria'

undertaingsundertaings =o&er to government to start an=o&er to government to start an

investigation into aairs o% I>investigation into aairs o% I>

The government can even ta+e theThe government can even ta+e the

underta+ing under its o&nunderta+ing under its o&n

management, i% it 2nds that I> is notmanagement, i% it 2nds that I> is not

&or+ing satis%actoril! and %ails to&or+ing satis%actoril! and %ails to

arr! out its instructionsarr! out its instructions



(stab'ish)ent o% a centra' (stab'ish)ent o % a centra'

advisor& counci'advisor & counci' The development and regulationThe development and regulation

o schedule industr!"o schedule industr!"

#a$ing rules"#a$ing rules"

Administration o the act" Administration o the act"



Constitution o% centra'Constitution o % centra'

advisor& counci'advisor & counci' A chairman and other mem$ers not A chairman and other mem$ers not

exceeding ?exceeding ?

em$ers appointed $! central govt#em$ers appointed $! central govt#

capa$le o% representing the interest o%capa$le o% representing the interest o%

1#1# <&ner o% I#># o% sch# industr!<&ner o% I#># o% sch# industr!

"#"# =erson emplo!ed in I#># <% sch#=erson emplo!ed in I#># <% sch#

industr!industr!## .onsumer o% goods manu%actured $!.onsumer o% goods manu%actured $!

industr!#industr!#

P C tt



Power o Centraower o entra*overn)ent a%ter*overn)ent a%ter

#nvestigation Sec-1+ #nvestigation Sec-1+ 1@2x the standard o% production1@2x the standard o% production

"@to control the price"@to control the price

@to ta+e such step %or development@to ta+e such step %or developmento% the underta+ing#o% the underta+ing#

:@prohi$it an! practice &hich reduce:@prohi$it an! practice &hich reduce

there productionthere production



($ect o% notifed order ( $ect o% notifed order

under section 1,Aunder section 1,A 1@All person holding as a1@All person holding as a

management position shall vacatedmanagement position shall vacatedthe oicethe oice

"@All contracts $et&een I> and"@All contracts $et&een I> andmanagement shall $e terminatedmanagement shall $e terminated

@The person authori4ed $! 'ovt#@The person authori4ed $! 'ovt#

shall ta+e the management o% the I>shall ta+e the management o% the I>



Power o% #DA Power o % #DA

=o&er o% Inspection=o&er o% Inspection

To ta+e over the management o% theTo ta+e over the management o% the

Industrial >nderta+ingIndustrial >nderta+ing

'ive order %or control the price and'ive order %or control the price and

distri$ution o% o% certaindistri$ution o% o% certain

articles(18')articles(18')



%enalties%enalties

here an! person %ailure on@here an! person %ailure on@

1@=rovison sec1?(1)@ Bailure to get1@=rovison sec1?(1)@ Bailure to getRegistrationRegistration

"@%ailure to o$tain 3icence %or"@%ailure to o$tain 3icence %ormanu%acture ne& article#manu%acture ne& article#

@%ailure to compl! direction us 1; a%ter@%ailure to compl! direction us 1; a%terinvestigationinvestigation

:@an! order us 18 ':@an! order us 18 'These contravention attract imprisionmentThese contravention attract imprisionment

upto ; months or 2ne extending uptoupto ; months or 2ne extending uptoRs#5???@Rs#5???@

L t I tt t



L st o In ustr esst o n ustr esreserved or pu&licreserved or pu&lic

sector sector Arms and ammunition and allied o% Arms and ammunition and allied o%

de%ence e6uipmentde%ence e6uipment

Atomic nerg! Atomic nerg!

ineral <ilsineral <ils

Rail&a! TransportRail&a! Transport



#ndustria' LicenSe is #ndustria' LicenSe is

co).u'sor& co).u'sor& Alcoholic drin+s Alcoholic drin+s

.igar and .igarettes o% to$acco.igar and .igarettes o% to$acco

De%ence e6uipmentDe%ence e6uipment Ca4ardous chemicalsCa4ardous chemicals

Drugs and pharmaceuticsDrugs and pharmaceutics

industrial development and regulation act

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