Question

Payal food industries set up food and beverages plant in the rural area of Madhya Pradesh and opted for labour intensive technique due to easy availability of labour and to provide employment to local people. The Board of directors of Payal Food Industries decided to invest ₹50 lakhs to acquire plant and machinery, ₹1 crore to buy land, ₹25 lakhs to buy raw material and ₹20 lakhs to maintain day to day expenses.
(a) Name the Act of Industries which is applicable to the above industry.
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(b) Under which category of part (a) will the above industry came?
(c) State the investment limits in this category.

Answer 1

The answer is:-

The Industries (Development and Regulation) ACT, 1951

The main objectives of the Act is to empower the Government:-

(i) to take necessary steps for the development of industries;

(ii) to regulate the pattern and direction of industrial development;

(iii) to control the activities, performance and results of industrial undertakings in the public interest. The Act applies to the 'Scheduled Industries' listed in the First Schedule of the Act. However, small scale industrial undertakings and ancillary units are exempted from the provisions of this Act.

The Act is administered by the Ministry of Industries & Commerce through its Department of Industrial Policy and Promotion.