Question

As a result of the New Industrial Policy, 1991 -

• A. Prior approval of Central Government is required for establishing new undertakings, and expanding the present undertakings
• B. An industry intending to have more than Rs 100 Crore of assets is required to obtain the permission of the Central Government
• C. Prior approval of Central Government for establishing new undertakings and expanding existing undertaking is not required
• D. Two or more Companies deciding to amalgamate are required to take the prior approval of the Central Government

Answer 1

Answer: (C)

Prior approval of Central Government for establishing new undertakings and expanding existing undertaking is not required

New industrial policy include the policy of liberalization where it was specified that it is compulsory only for few major named industries to have compulsory licence under the rules and regulations of the government where as other industries were free to establish as well as expand their company without any government intervention.