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

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.

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

Main Provisions

Developmental provisionsRegulatory provisions

The IDR Act contains provisions to realise the objectives.

Developmental measuresCentral 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 that- a) 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 ManagementThe 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 &

Management of business

Regulation of entry into

& growth of business

Supervision,

Investigation & inspection

Take over of management

Regulation of production,

supply, price & distribution

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.