Industries Development And Regulation Act

INTRODUUCTION The IDRA has brought under Central control the development and regulation of a number of industries and their activities which affect the country as a whole and development of which must be governed by economic factors of all-india performance.

Objectives The main object of the Act is to provide the Central government with the means to implement their industrial policy.

To take necessary steps for the development of industries. To regulate the pattern and direction of industrial development. To control the activities, performance and results of undertakings in the public interest.

Main Provisions The IDR Act contains provisions to realise the objectives.

Developmental provisions Regulatory provisions

Developmental measures Central Advisory Council, consisting of representatives of owners of industrial undertaking, employees, suppliers etc for the purpose of advising the government on matters concerning development of industries. Developmental Council consists members representing the interest of owners, consumers etc for the purpose of recommending measures to improve the performance of the industries.

Regulation of Entry and Growth It empowers the Central Government to regulate the development of industries by means of licensing with exemptions decided by govt. The entry into a business or expansion of an existing business may be regulated by licensing.

Supervision and Control Government can make full and complete investigation if it is of opinion thata) in respect of any scheduled industry has been likely to fall in volume of output or quality of output or unjustifiable rise in the price of output. b) any industrial undertaking is managed in a manner highly detrimental to scheduled industry concerned or to public interest.

Directions  Regulating the production and fixing the standards of production.  Controlling the prices or regulating the distribution of any article which have been the subject-matter of the investigation.  Prohibiting the industrial undertaking or practice which might reduce its production, capacity or economic value.

Any person authorised by the Central government in this behalf can a) enter and inspect he premises. b) order the production of any document, book, register or power any person having control with industrial undertaking. c) examine any person having control or employed in any connection with the industrial undertaking.

Take over of Management The power of the central government to control management of industrial undertakings also extends to take over of the management or the undertaking itself. Undertaking which is being managed in a manner highly detrimental to the scheduled industry concerned or to public interest.  Government can take over company under liquidation, if it is of opinion to maintain production, supply in the public interest.

Price and Distribution Controls The Central government can take measures to control the quality and price of products and production and distribution. For securing the equitable distribution and availability at fair prices of any article relatable to industry.

INDUSTRIES (DEVELOPMENT AND REGULATION) ACT

Developmental provisions

Regulatory provisions

Advisory council & Development councils

Regulation of Conduct &

Regulation of entry into

Management of business

& growth of business

Supervision, Investigation & inspection

Regulation of production, supply, price & distribution

Take over of management

Conclusion The Liberalisation has significantly diminished the importance of IRDA. The act has been regarded as a very draconian one by industrialists, many economies and others. Under the controlled regime, the Central Government had a dominant say on the location of industries. Now its up to the State governments to promote industries in the states.