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Industrial Development and Regulation Act

By R.Suresh

Introduction
Growth of the industrial sector at a higher rate and on a sustained basis is a major determinant of a country's overall economic development. In this regard, the Government of India has issued industrial policies, from time to time, to facilitate and foster the growth of Indian industry and maintain its productivity and competitiveness in the world market.

Purpose
In order to provide the Central Government with the means to implement its industrial policies, several legislations have been enacted and amended in response to the changing environment. The most important being the IDRA which was enacted in pursuance of the Industrial Policy Resolution, 1948. The Act was formulated for the purpose of development and regulation of industries in India by the Central Government.

Objectives
The main objectives of the Act is to empower the Government:- (i) to take necessary steps for the development of industries; (ii) to regulate the pattern and direction of industrial development; (iii) to control the activities, performance and results of industrial undertakings in the public interest. The Act applies to the 'Scheduled Industries' listed in the First Schedule of the Act. However, small scale industrial undertakings and ancillary units are exempted from the provisions of this Act.

Objectives
The Act is administered by the Ministry of Industries & Commerce through its Department of Industrial policy and promotion. The DIPP is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector. It monitors the industrial growth and production, in general, and selected industrial sectors, such as cement, paper and pulp, leather, tyre and rubber, light electrical industries, consumer goods, consumer durables, light machine tools etc..

IDRA.
In particular its also responsible for facilitating and increasing the foreign direct investment (FDI) inflow into the country as well as for encouraging acquisition of technological capability in various sectors of the industry.

Provisions of the Act


Establishment of a 'Central Advisory Council' for the purpose of advising the Central Government on matters concerning the development of the industries, making of any rules and any other matter connected with the administration of the Act. Its members shall consist of representatives of the owners of industrial undertaking, employees, consumers, primary suppliers,

Main provisions of the Act


Establishment of a 'Development Council' for the purpose of development of any scheduled industry or group of scheduled industries. This council shall consist of the members representing the interests of the owners, employees, consumers, etc. and persons having special knowledge of matters relating to the technical or other aspects of the industries.

Main provisions of the Act


The development council shall perform the following functions assigned to it by the Central Government:- (i) recommending targets for production, co-ordinating production programmes and reviewing progress from time to time. (ii) suggesting norms of efficiency with a view to eliminating waste, obtaining maximum production, improving quality and reducing costs. (iii) recommending measures for securing the fuller utilisation of the installed capacity and for improving the working of the industry, particularly of the less efficient units

Main provisions of the Act


promoting arrangements for better marketing and helping in the devising of a system of distribution and sale of the produce of the industry which would be satisfactory to the consumer. (v) promoting the training of persons engaged or proposing engagement in the industry and their education in technical or artistic subjects relevant thereto, etc.

Licensing
The IDRA empowers the Central Government to regulate the development of industries by means of licensing with suitable exemptions as decided by the Government. Accordingly, the entry into a business or the expansion of an existing business may be regulated by licensing

Licensing
A licence is a written permission from the Government to an industrial undertaking to manufacture specified articles included in the Schedule to the Act. It contains particulars of the industrial undertaking, its location, the articles to be manufactured, its capacity on the basis of the maximum utilisation of plant and machinery, and other appropriate conditions which are

IDRA
The power of control entrusted to the Central Government under the Act extends to that of the take over of the management of the whole or any part of an industrial undertaking which fails to comply with any of the directions mentioned above. The Government can also take over the management of an undertaking which is being managed in a manner highly detrimental to the scheduled industry concerned or to the public interest

IDRA
Further, the Central government can take over the management of industrial undertaking owned by a company under liquidation, with the permission of the High Court, if the Government is of the opinion that the running or restarting the operations of such an undertaking is necessary for the maintaining or increasing the production, supply or distribution in the public interest

IDRA..
In today's scenario, only 6 categories of industries require industrial licensing under the Industries (Development and Regulation) Act, 1951 (IDRA). Such industries file an Industrial Entrepreneur Memoranda (IEM) with the Secretariat of Industrial Assistance (SIA),Department of Industrial Policy and Promotion to obtain an acknowledgement.

Information Technoly Act 2000

Introduction
Digital Technology and new communication systems have made dramatic changes in our lives. We are all increasingly using computers to create ,transmit and share information in the electronic form instead of the traditional paper documents. A revolution is occuring in the way people transact and also do business Business and consumers are increasingly using computers to create,transmit and store information instead of traditional paper.

Introduction
It is cheaper,easier to store ,retrieve and speedier to communicate.earlier post cards, inland letters etc Although people are aware of these advantages ,they are reluctant to conduct business or conclude any transaction in the electronic form due to lack of appropriate legal framework.

Introduction
Two principal hurdles which stand in the way of facilitating elctronic commerce and electronic governance are the requirements as to writing and signature for legal recognition. The Law of evidence is traditionally based upon paper based records and oral testimony.

Introduction
Since electronic commerce eliminates the need for paper based transactions,hence to facilitate e commerce, the need for legal changes have become an urgent necessity.International trade through the medium of e commerce is growing rapidly in the last few years and many countries have switched over from traditional paper based commerce to e commerce.

Introduction
The united nations commission on International Trade Lawadopted the model law on electronic commerce in 1996. The General assemble of UN IN 1997 recommended that all states should have or give favourable considerations to the said model.when they act or revise their laws.
Changes expected in IPC, IEA etc..to provide for necessary changes in the various provisions

Introduction
Which deal with offences relating to documents and paper transactions. Electronic fund transfers, give legal sanctity for books of account to be maintained in the electronic form by banks.

Information Technology Act 2000


An act to provide for transactions carried out by means of electronic data interchange and other means of elctronic communication , commonly referred to as Electronic commerce which involve the use of alternatives to paper based methods of communication with the Government agencies and further to amend the Indian Penal code the Indian Evidence act

Some definitions
The Bankers Book evidence act 1891(for maintianng records) and the Reserve bank of India act 1934. Communication device means all cell phones ,personal digital assistance or combination of both or any other devise used to communicate,send transmit any text, video, audio or image

Some definitions..
Cyber cafmeans any facility from where access to the internet is ofered by any person in the ordinary couse of business to the memebrs of the public.. Cyber security means protecting information, equipment ,devices, computer resources .communication device and information stored therein from unauthorised access disclosure disruption modification or destruction

Data
Data means a representation of information ,knowledge,facts,concepts or instructions which are being prepared or have been prepared in a formalised manner..and is intended to be processed..in a computer system..and may in anyform..including computer print outs,magnetic or optical storage media ,punched cards ,punched tapes etc or stored internally in the memeory of the computer..

Digital Signature..
Digital signature means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3

Computer
Computer means any electronic, magnetic, optical or other high speed data processing device or system which performs logical, arithmetic and memory functions by manipulations of electronic, magnetic or optical impulses, and includes all input, processing, storage, computer software or communication facilities which are connected or related to the computer in a computer in a computer system or computer network.

Computer network
Computer network means the interconnection of one or more computers or computer systems or communication device through The use of satellite, microware, terrestrial line wire, wireless or other communication media; and Terminals or a complex consisting of two or more interconnected computers or communication device whether or not the inter-connection is continuously maintained

Computer resource
Computer resource means computer, computer system, computer network, data, computer data base or software.

Electronic signature
Electronic signature means authentication of any electronic record by a subscriber by means of the electronic specified in the Second Schedule and includes digital signature.

Section 3
Digital signature and electronic signature.. Any subscriber may authenticate an electronic record by affixing his digital signature. The authntication of the elctronic record shall be effected by the use of asymmetric crypto sytem and hash function which envelop and tranform the initial elctronic record into another electronic record..

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