New Industrial License Policy 1970
In the backdrop of the Dutt Committee 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 Rs. 5 Crore or more.
- Middle Sector: These industries required the investment of Rs. 1 Crore to Rs. 5 crore.
- Non-Core Heavy Investment Sector or Joint sector, which comprised of those core industries which required assets of Rs. 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.