IDRA ,1951

(INDUSTRIES DEVELOPMENT REGULATION ACT)

The Industries (Development and Regulation) Act provides the conceptual and legal framework for industrial
development and industries in India. It is briefly known as the IDR Act. The act was enacted in 1951 and a
number of amendments have been made in the Act.

The licensing policy for industries is determined under this act.

Section 11-B provides the power to specify the definition of SSI in consideration of factors relating to:

Investment of unit in fixed assets

Nature of ownership

Smallness of number of workers employed

Nature, cost and quality of product etc.,

Section 29-B provides for reservation of products for exclusive production in the small-scale sector.

The portions of the Act and subsequent notifications for amendments related to the small scale and ancillary
industrial undertakings have been reproduced here for reference. The major ones are

1. Industries (Development and Regulation) Act, 1951.

Explanatory Note:

The conceptual and legal framework for small scale and ancillary industrial undertakings is derived
from the IDR Act, 1951. Section 11 B of the Act specifies the general requirements that are to be
complied with by small-scale units. The Section is quoted below: -

SECTION 11-B

"Power of Central Government to specify the requirements which shall be complied with by small
scale industrial undertakings: