New Industrial License Policy 1970 - General Knowledge Today

New Industrial License Policy 1970

In the backdrop of the Dutt CommitteeDutt 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 ..... report and establishment of MRTPC, the Government of India announced new Industrial Policy in 1970. As per this new policy, Industries were divided into 4 parts, which were called as sectors:

  • Core Sector: This comprised of basic, critical and strategic industries such as atomic energy, cement, Iron, Steel etc. It was emphasized that the Core sector would be exclusively developed under the Public Sector. The industries required the assets of ` 5 Crore or more.
  • Middle Sector: These industries required the investment of ` 1 Crore to ` 5 crore.
  • Non-Core Heavy Investment Sector or Joint sector, which comprised of those core industries which required assets of ` 5 crore.
  • Delicensed Sector', in which investment was less than Rs.1 Crore and was exempted from licensing requirements.

So, the major outcome of the Industrial License Policy 1970 was that the role of the large business houses was confined to the core, heavy and export oriented sectors.

Last Updated: November 22, 2013