Dutt Committee: (Submitted Report 1969)
The government of India had the reports of the Monopolies Inquiry Commission and Hazari Committee in hand by 1967. Subsequently, one more expert committee "Industrial Licensing Policy Inquiry Committee" was set up under the chairmanship of Mr. Subimal Dutt and it was famous as Dutt Committee. The major recommendation of the Dutt Committee was that larger industrial houses should be given licenses only for setting up industry in core and heavy investment sectors. This recommendation gave rise to necessity of reorientation of industrial licensing policy. Some more points on Dutt Committee:
Dutt Committee recommended setting up of a monopolies commission with necessary teeth to deal with the problems of concentration of economic power or product monopolies.
It also recommended the classification of industries into sectors such as Core sector, Non Core sector, reserved sector etc. The large industrial houses should be entered to the core sectors.
The committee observed that due to the license raj, a very strong nexus has developed between the Industrial houses, politicians and bureaucrats and there was a need to harmonize the social interest with private interest.
Please note that Dutt Committee had defined large business houses as those with assets of more than ` 350 million (` 35 Crore).
On the basis of recommendation of Dutt Committee , MRTP Act was enacted in 1969.