Industries

(Development
and
Regulation)
Act,1951

PREPARED BY: Rajesh Dey PA1523

PRESENTED TO: Ms. Bharthi Parekh

 The

Industries (Development and

Regulation) Act ,1951 came into exist
on 8th May, 1952.

It

has been amended from time to

time, the latest being in 1998.

The

act provides wide powers to the

Govt. of India in relation to regulation
on industries.

This

act applicable to the whole of

India including state of Jammu &
Kashmir.

Objectives:

To implement the industrial policy

To look after the regulation and

development of important industries

To plan the future development of

new undertakings

The salient features of the IDR Act

1951
Existing

undertakings need to be
registered with the Government within
the prescribed time limit
New units are permitted only through
an industrial license
Government has the power to
conduct an investigation, assume
management control provide relief or
control supply and distribution of
products of certain industrial
undertakings.

Definitions:

Central Govt.: Central Govt. refers to

Government of India.

Industry: The word industry has a

wide meaning and it includes any
business, trade, undertaking,
manufacturing or calling of employers
or any calling service, employment,
handicraft or industrial occupation or
a vocation of a workman.

Cont

Central Advisory Council: The Central

Govt. may be by notified order, establish
a council for the purpose of advising the
Govt. on the issues of development and
regulation of the scheduled industry, in
a process of making of rules under the
act and the overall administration of the
act.
Development Council: The Central Govt.
may, by notified order, establish for any
scheduled industry or a group of
industries a body of persons to be called
a Development Council.

Licensing:

License is a written permission from the

Govt. which may include the conditions
such as the location, minimum size etc.
License is required for
establishment of new industrial undertakings
pertaining to a scheduled industry
Expansion or diversification of an article by a
scheduled industry
Change of location of a licensed/registered
undertaking
Carrying on business of an industry which
requires a license but which has not been
licensed previously

Provisions to the Act:

To attain the above said objectives, the act

confers very wide powers on the government
in relation to industries.

1.

The registration of the existing Industrial

Enterprises
Licensing to new undertakings
Investigation into the affairs of any Industrial
undertakings
Establishment of a Central Advisory Council
Constitution of Central Advisory Council
Establishment of a Development Council

2.
3.

4.
5.
6.

Section-10

The registration of existing industrial

enterprises
Registration of industrial undertakings
as per the notification in official gazette.
A Certificate Of Registration, containing
product capacity of the industrial
undertaking and other particulars as
prescribed by central govt.

Licencing to new
undertakings
(section 11)

License for producing new articles

License for effecting substantial
expansion
Licence for change in location
Licence for carrying on business
without registration
Licence for carrying on benefits
after the revocation of certificate
of registration

Investigation into the

affairs of any Industrial
undertakings

Power to government to start an

investigation into affairs of IU
The government can even take the
undertaking under its own
management, if it finds that IU is not
working satisfactorily and fails to
arry out its instructions

Establishment of a central
advisory council

The development and regulation

of schedule industry.

Making rules.

Administration of the act.

Constitution of central
advisory council
A chairman and other members not
exceeding 30
Members appointed by central govt.
capable of representing the interest of
1. Owner of I.U. of sch. industry
2. Person employed in I.U. Of sch.
industry
3. Consumer of goods manufactured by
industry.

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

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

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 imprisionment
upto 6 months or fine extending upto
Rs.5000/

List of Industries
reserved for public
sector

Arms and ammunition and allied of

defence equipment
Atomic Energy
Mineral Oils
Railway Transport

Industrial LicenSe is
compulsory

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