In view of the changes introduced in 1975, there was again a shift in the industrial policy towards decontrol. Its main components were: (1) 21 industries were relicensed, (2) Enterprises not covered by MRTP were not required to obtain licenses if the investment did not exceed: (a) Rs. 1 crore in the case of a new unit, or (b) Rs. Five crores in the case of expansion in heavy industries, and (3) A provision was also made for regularising unauthorised capacity.
Twenty-five per cent of the excess unauthorised capacity was regularised directly and another 25 per cent was to be regularised the next five years.