BBA 1st Year Business Environment Industrial Policy Short Question Answer

6. Single Window loan Scheme: This scheme has also been enlarged to cover project upto 20 lakhs with a working capital margin upto 10 lakhs. The composite loans under the single window loan scheme would also be channeled through commercial banks.

7. Special Monitoring Agency: The policy promises to meet 100% credit requirement of all the small and tiny industries. A special monitoring agency would be set up to cover the genuine credit needs of the small scale sector are fully met.

8. Equity Participation by other Industries: To provide access to the capital market and to encourage modernization and technological up gradation, it has been decided to allow both domestic and foreign managed companies in India upto 24% equity participation in the small-scale sector.

9. Limited Partnership Act The policy proposes to introduce a limited partnership act with a view to enhancing the supply of risk capital to the small-scale sector.

10. Factoring Services and Legislation to Avoid Delayed Payments: With a view to solve the problem of delayed payment to the small scale units by the larger units, factoring services through the Small Industries Development Bank of India (SIDBI) has been introduced. The government also proposes to introduce a suitable legislation to ensure prompt payment of small industries bills.

11. Integrated Infrastructural Development Scheme: To encourage the location of industries in all backward areas and to promote stronger linkages, e.g., agriculture and industry.

12. Equitable Distribution of Raw Material: The policy envisages that all measures would be taken to ensure equitable distribution of indigenous and imported raw material to the small sectors particularly the tiny sub sector.

13. Promotion of Entrepreneurship: The government will continue to support entrepreneurs through training and other help. A large number of the entrepreneurs will be trained under the Entrepreneurship Development Programme (EDP). Women entrepreneurs will receive support through special training programme.

14. Simplification of Procedures: The policy states that the procedures would be simplified, bureaucratic control effectively reduced, unnecessary interference eliminated and paper work cut down to the minimum to enable entrepreneurs to concentrate on production and marketing functions.

Q. 9. What is IDRA? Give its objectives and salient features.

Ans. Industries Development and Regulation Act 1951 (IDRA)

For the effective implementation of basic provisions of the industrial policy 1948, a bill was presented in parliament in March, 1949. This bill was passed in Oct. 1951 as industries Development and Regulation Act, 1951, (IDRA).

Objectives of IDRA

The objectives of IDRA 1951 were as follows:

1. Proper Allocation of Resources: Important objectives of this act was to ensure proper allocation of all natural, physical and human resources for optimum use.

2. Planned Economic Development: IDRA aimed at facilitating the process of planned economic development to achieve objectives in planned manner.

3. Balanced Growth: IDRA ensures balanced industrial and economic development of a country. Proper balance of all the sectors of economy should be maintained.

4. Check on Concentration of Economic Power: IDRA aimed at the concentration of economic power. All the industrialists and entrepreneurs must get equal opportunity.

5. Protection of SSI: IDRA aimed at regulating industrial development to protect the interest of small scale and cottage industries.

6. Development of Infrastructural Facilities : IDRA aimed at the development of infrastructural facilities in the country, that may be useful in further industrial development.

Salient Features of IDRA

Salient features of IDRA can be described as below:

1. Restrictive Provisions: These provisions aim at directing the industrial development of country into desired stream by imposing certain restrictions. Important restrictive provisions are:

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