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 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 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 & Regulation of Conduct & Regulation of entry into

Development councils Management of business & growth of business

Supervision, Regulation of production, Take over of

Investigation & inspection supply, price & distribution 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.