Industrial License Policy
The License Policy of 1973 was merely a restatement of the 1970 policy. The salient aspects of this policy are: As follows: 1. Earlier companies with asset value of Rs 35 crore or less were considered as large industrial enterprises.
In the current policy it is reduced to Rs 20 crore. 2. The policy specifies a list of 19 industries where large industrial families and foreign companies can enter. These industries are: metallurgy, electrical machinery, boiler and steam plants, transport, prime movers, industrial machinery, agricultural machinery, scientific machinery, fertilizers, chemicals, pharmaceuticals, paper, tyre-tubes, glass, cement etc. 3. Industries of national importance or industries directly connected with them and having bright long-term export prospects will generally be reserved for the public sector. Larger industrial families and foreign companies will be able to produce products that are not specific to the government in core industries and products that are not specific to small scale industries. 4. Any organization with assets exceeding crores of rupees shall take license for undertaking or expansion.