As a result of the New Industrial Policy $1991$ :

Prior approval of central government is required for establishing new unit undertakings, and expanding the present undertaking.

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An industry intending to have more than

100

crore of assets is required to obtain the permission of the central government.

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Prior approval of central government for establishing new undertakings and expanding existing undertaking is not required.

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Two or more companies deciding to amalgamate are required to take the prior approval of the central government.

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Solution

The correct option is C Prior approval of central government for establishing new undertakings and expanding existing undertaking is not required.
New Economic Policy 1991 removed all the restrictions of central government from the private sectors. Thus as a consequence, prior approval of central government for establishing new undertakings and expanding existing undertaking is not required. Three main agendas of new economic policy 1991 are- liberalization, privatization and globalization.

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Similar questions

Q. According to New Industrial Policy, 1991 approval will be given for direct foreign Investment upto _________ of foreign equity in high priority industries.

Q. made it difficult for private producers to start new companies and run them independently as it required the government's approval.

Q. According to the amendment of the MRTP Act under NIP, 1991, the requirement for large companies to seek the prior permission of the Union government for the following had been eliminated.

Q. 76. The Planning Commission was established in 1950 through a Government resolution to formulate long-term development Plans and to recommend them to the Union Cabinet. In framing its recommendations, the Commission has to act in close understanding and consultation with the ministries of the Central government and the governments of the States. The responsibility for policy decisions and implementation rests with the Central and State governments. Many have regarded and some still regard, that the Indian Plans are modelled on Soviet-type "command" planning. This is true only to the extent that there was considerable emphasis, particularly in the Second and Third Plans, on creation of a heavy industrial base under the auspices of the State. Under the aggressive intellectual leadership of Prof. P.C. Mahalanobis and a few other technical experts of the Commission, this objective was given a pride of place in development planning. Subsequently, as a result of severe difficulties, higher priority was accorded to agriculture. The Industrial policy resolutions of 1948 and 1956 provided the basic framework of industrial development and regulation. The Industrial policy Resolution of 1948 envisaged careful planning and integrated effort and that a progressively increased role will be assumed by the Central and State governments in the process of economic growth and in industrial development in particular, by the public sector within a mixed economy. It demarcated industries between the public and private sectors, providing for exclusive monopoly of the basic and infrastructural industries to the former. The Industrial policy Resolution of 1956 gave priority to development of heavy industries and machine-making industries, expansion of public sector, besides promoting the co-operative sector.
Consider the following assumptions regarding the above passage.
1. The recommendations of Planning Commission is mandatory for Union and State governments.
2. Under industrial policy resolution 1948 both union government and state governments have to take some initiatives for economic growth through public sector undertakings.
3. The industrial policy resolution 1956 has prioritized heavy industries, machine making industries and cooperative sector through public sector undertakings.

Q. Under Industrial Dispute Act,

1947

, when there are more than _________ workmen prior permission by the government is necessary for retrenchment.

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As a result of the New Industrial Policy 1991:

As a result of the New Industrial Policy $1991$ :