Brief notes on Industries Act, 1951



The IPR of April 1948 was passed in the form of a bill in October I95l and came into force in May 1952. Under this Act the entire industrial sector was put under the administrative guidance, promo­tion and control of the government. The Act was first applied to only 17 scheduled industries but later on their number swelled to 70. These industries were subjected to following regulations:

(a) All the existing units were to be registered with the government. Expansion of any existing establishment or starting of a new one needed prior license of the Central Government.

(b) The government assumed wide powers of investigation relating to a variation in production, pricing, quality or management of an establishment falling under the Schedule.

(c) The government also assumed powers to regulate the distribution and pricing of any sched­uled industry.

(d) A provision was made for constituting development councils to decide production targets, efficieny norms, promotion of standardisation, trad­ing, research and productivity etc.

The major objectives of the Act included a balanced growth of all the regions jf the country, protection of small scale industries against competi­tion from large scale industries and prevention of mono-polies and concentration of ownership of the means of production.