Industrial Development and Regulation Act: 1951
- August 6, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Subject: Schemes/ Acts
Industrial disasters shed light on Industrial Development and Regulation Act, 1951.
- It was passed by the Parliament on October 1951 to control and regulate the process of Industrial development in the country.
- The objectives of the Act were:
- Regulation of Industrial Investment and Production according to Five Year Plans.
- Protection of small-scale enterprises from giant enterprises.
- Prevention of Monopolies and concentration of ownership of industries in few hands.
- Balanced Growth and Equitable development of all the regions.
- Major Provisions of the Act
- Restrictive Provisions: It contains all measure provision to curb unfair trade practices.
- Registration: The provisions make registration of industries mandatory irrespective of whether they are private or public in nature. The expansion of the existing business also required licencing and permission.
- Examination and Monitoring of the Industries: After granting of license, it is the responsibility of the state to monitor the performance of the industries. If at any point in time, the industrial unit was found not up to the mark, under utilising its resources or charging excessive prices, the government could set up an enquiry against the unit.
- Cancellation of the Licence:The government has the power to cancel the licence granted to the industrial unit if found, engaging in wrongful behaviour.