As a follow-up to the 1980 statement, a number of measures aimed to optimum utilisation of installed capacities, automatic growth for certain basic industries, export promotion, streamlining of licensing procedures, promotion of economic feudalism, conceptualization of nucleus plants and development of a new strategy for industrial development of backward areas have been announced from time to time.
Also the Government has been moving, although with caution, towards the liberalisation of the licensing policy. Accordingly, the Government announced some further concessions on April 21, 1982 of which following are important:
(a) The list of core sector industries has been revised by including five more industries. The FERA companies and the large industrial houses will be allowed to set up industries in these areas.
(b) The industry has been allowed 33.3 per cent capacity over the best production during the last five years over and above the 2.5 per cent excess production.
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(c) Large industrial houses and multinational will also be permitted to set up units outside the core sector if the units are predominantly export oriented, that is 60 per cent export in respect of items not reserved and 75 per cent for items reserved for the small-scale sector.
(d) The enhanced capacity of 33.3 per cent under the new scheme will not be available for items reserved for the small-scale sector and other 72 industries which are subject to special regulation and licensing such as vanaspati and milk food etc.
Liberalisation of the licensing policy has been justified on the ground of stimulating industrial growth in the core sector as well as in industries with export potential.