1. Unit 1
BUSINESS AND DIFFERENT CHAMBERS OF COMMERCE AND INDUSTRY IN INDIA
A chamber of commerce is also known as a board of trade, is a kind of business network. Its aim is to
enhance the business interest of the members. The Chambers could have a board of directors, who in
turn would recruit a President, CEO and other required staff for the administration of the Chamber.
Chambers Of Commerce is formed with the purpose of
1. Strengthening Local economy.
2. Creating business networking opportunities.
3. Communicating with government for the business community.
4. Addressing the grievances of members.
5. Creating a strong local economy.
PUBLIC DISTRIBUTION SYSTEM
Public Distribution System (PDS) is an Indian food security system. Established by the Government of
India under Ministry of Consumer Affairs, Food, and Public Distribution and managed jointly with state
governments in India, it distributes subsidized food and non-food items to India's poor. Major
commodities distributed include staple food grains, such as wheat, rice, sugar, and kerosene, through a
network of Public distribution shops, also known as Ration shops established in several states across the
country. Food Corporation of India, a Government-owned corporation, procures and maintains the
Public Distribution System.
In terms of both coverage and public expenditure, it is considered to be the most important food
security network. However, the food grains supplied by the ration shops are not enough to meet the
consumption needs of the poor or are of inferior quality. The average level of consumption of PDS grains
in India is only 1 kg per person / month. The PDS has been criticised for its urban bias and its failure to
serve the poorer sections of the population effectively. The targeted PDS is costly and gives rise to much
corruption in the process of extricating the poor from those who are less needy. Today, India has the
largest stock of grain in the world besides China, the government spends Rs. 750 billion ($13.6 billion)
per year, almost 1 percent of GDP, yet 21% remain undernourished.[1] Distribution of food grains to
poor people throughout the country is managed by state governments.[2] As of date there are about
4.99 lakh Fair Price Shops (FPS) across India
Overview
Both the central and state governments shared the responsibility of regulating the PDS. While the
central government is responsible for procurement, storage, transportation, and bulk allocation of food
grains, state governments hold the responsibility for distributing the same to the consumers through the
established network of Fair Price Shops (FPSs). State governments are also responsible for operational

2. responsibilities including allocation and identification of families below poverty line, issue of ration
cards, supervision and monitoring the functioning of FPSs[clarification needed].[3]
Under PDS scheme, each family below the poverty line is eligible for 35 kg of rice or wheat every month,
while a household above the poverty line is entitled to 15 kg of foodgrain on a monthly basis.[4]
A BPL card holder should be given 35 kg of foodgrain and the card holder above BPL should be given 15
kg of food grain as per the norms of PDS. However, there are concerns about the efficiency of the
distribution process.
Public distribution shop
A public distribution shop also known as Fair Price Shop (FPS), part of India's Public Distribution System
established by Government of India, is a kind of shop in India which is used to distribute rations at a
subsidized price to the poor. As of date there are about 4.99 lakh Fair Price Shops (FPS) across India.[5]
Locally these are known as "ration shop" and chiefly sell wheat, rice, kerosene and sugar at a price lower
than the market price. However, other essential commodities may also be sold. These are also called
Fair Price Shops. For buying items from this shop one must have a ration card. These shops are operated
throughout the country by joint assistance of central and state government. No doubt the item from
these shops are much cheaper but are of poor quality. Ration shops are now present in most localities,
villages towns and cities. India has 478,000 shops constituting the largest distribution network in the
world.
The introduction of rationing in India dates back to the 1940s Bengal famine.this rationing system was
revived in the wake of acute food shortage during the early 1960s, prior to the Green Revolution.
Fallouts of P.D.S System
The Public Distribution System of India is not without its defects. With a coverage of around 40
croreBPL(Below Poverty Line) families, a review of the PDS has discovered the following structural
shortcomings and disturbances:
1. Growing instances of the consumers receiving inferior quality food grains in ration shops.[7]
2. Deceitful dealers replace good supplies received from the F.C.I(Food Corporation of India) with
inferior stock and sell FCI stock in the black market.
3. Illicit fair price shop owners have been found to create large number of bogus cards to sell food
grains in the open market.
4. Many FPS dealers resort to malpractice, illegal diversions of commodities, hoarding and black
marketing due to the minimal salary received by them.[8]
5. Numerous malpractices make safe and nutritious food inaccessible and unaffordable to many poor
thus resulting in their food insecurity.[9]
6. Identification of households to be denoted BPL status and distribution to granted PDS services has
been highly irregular and diverse in various states. The recent development of Aadhar UIDAI cards

3. has taken up the challenge of solving the problem of identification and distribution of PDs services
along with Direct Cash Transfers.
7. Regional allocation and coverage of FPS are unsatisfactory and the core objective of price
stabilization of essential commodities has not met.
GOVERNMENT CONTROL OVER PRICE AND DISTRIBUTION
Price controls
Price controls are governmental restrictions on the prices that can be charged for goods and services in
a market. The intent behind implementing such controls can stem from the desire to maintain
affordability of staple foods and goods, to prevent price gouging during shortages, and to slow inflation,
or, alternatively, to insure a minimum income for providers of certain goods or a minimum wage. There
are two primary forms of price control, a price ceiling, the maximum price that can be charged, and a
price floor, the minimum price that can be charged.
Historically, price controls have often been imposed as part of a larger incomes policy package also
employing wage controls and other regulatory elements.
Although price controls are often used by governments, economists usually agree that price controls
don't accomplish what they are intended to do and are generally to be avoided.
Government control over distribution and price of essential commodities in India
Government control over distribution and price of essential commodities is an important feature of a
shortage economy. Production serves no purpose if the goods produced are not delivered to the final
consumer at the right time in the right quantity and at the right price.
The existing private sector trade channels in India cannot be wholly relied upon due to their mal-
practices and their general tendency to exploit the scarcity situation. Adulteration, hoarding, cornering,
profiteering, black marketing and other anti-social and unethical practices make people cry for public
distribution system.
Rationing of food grains was introduced during the Second World War period. It was withdrawn after
the Independence but it was again introduced on a statutory basis in 1954. The basic legal frame for
commodity control is provided by the Essential Commodities Act, 1955.
This Act provides, in the interest of the general public, for government control over the production,
supply and distribution of essential commodities which are listed. These commodities fall into three
classes—
a) food items,
b) raw materials for industries and
c) products of the centrally-controlled industries.

4. The Central Government is empowered to declare any commodity as an essential commodity for the
purpose of the Act.
The Government has now listed over 60 commodities as essential commodities. For the purpose of this
Act, essential commodity means any of the following classes of commodities:
(i) Cattle fodder including oil cakes,
(ii) Coal including coke and other derivatives,
(iii) Component parts of automobiles,
(iv) Cotton and woolen textiles,
(v) Drugs,
(vi) Foodstuffs including edible oils,
(vii) Iron and steel,
(viii) Paper and newsprint,
(ix) Petroleum and petroleum products,
(x) Raw cotton,
(xi) Raw jute,
(xii) Any other class of commodity which the Central Government may declare to be an essential
commodity for the purpose of this Act.

5. Unit 2
CONSUMER PROTECTION ACT OF 1986
Consumer Protection Act of 1986 is an act of Parliament of India enacted in 1986 to protect interests of
consumers in India. It makes provision for the establishment of consumer councils and other authorities
for the settlement of consumers' disputes and for matters connected therewith.Contents [hide]
Consumer Protection Council
Consumer Protection Councils are established at the national, state and district level to increase
consumer awareness.[1]
Central Consumer Protection Council
It is established by the Central Government which consists of the following members:
1. The Minister of Consumer Affairs, – Chairman, and
2. Such number of other official or non-official members representing such interests as may be
prescribed.
State Consumer Protection Council
It is established by the State Government which consists of the following members:
1. The Minister in charge of consumer affairs in the State Government – Chairman.
2. Such number of other official or non-official members representing such interests as may be
prescribed by the State Government.
3. such number of other official or non-official members, not exceeding ten, as may be nominated
by the Central Government.
4. The State Council is required to meet as and when necessary but not less than two meetings
every year.
Consumer Disputes Redressal Agencies
Consumer Court
District Consumer Disputes Redressal Forum (DCDRF): Also known as the "District Forum" established
by the State Government in each district of the State. The State Government may establish more than
one District Forum in a district. It is a district level court that deals with cases valuing up to 2 million
(US$37,000).[1]

6. State Consumer Disputes Redressal Commission (SCDRC): Also known as the "State Commission"
established by the State Government in the State. It is a state level court that takes up cases valuing less
than 10 million (US$180,000)[1]
National Consumer Disputes Redressal Commission (NCDRC): Established by the Central Government.
It is a national level court that works for the whole country and deals with amount more than 10 million
(US$180,000).[1]
Objectives
Objectives of Central Council
The objectives of the Central Council is to promote and protect the rights of the consumers such as:-
a) the right to be protected against the marketing of goods and services which are hazardous to life
and property.
b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods or
services, as the case may be so as to protect the consumer against unfair trade practices.
c) the right to be assured, wherever possible, access to a variety of goods and services at competitive
prices.
d) the right to be heard and to be assured that consumer's interests will receive due consideration at
appropriate forums.
e) the right to seek redressal against unfair trade practices or restrictive trade practices or
unscrupulous exploitation of consumers; and
f) the right to consumer education.
Objectives of State Council
The objects of every State Council shall be to promote and protect within the State the rights of the
consumers laid down in clauses (a) to (f) in central council objectives.
Jurisdiction
Jurisdiction of District Forum
1) – Subject to the other provisions of this Act, the District Forum shall have jurisdiction to
entertain complaints where the value of the goods or services and the compensation, if any, claimed
does not exceed rupees twenty lakhs.
2) – A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction:-

7. a) the opposite party or each of the opposite parties, where there are more than one, at the time
of the institution of the complaint, actually and voluntarily resides or carries on business or has
a branch office or personally works for gain, or
b) any of the opposite parties, where there are more than one, at the time of the institution of the
complaint, actually and voluntarily resides, or carries on business or has a branch office, or
personally works for gain, provided that in such case either the permission of the District Forum
is given, or the opposite parties who do not reside, or carry on business or have a branch office,
or personally work for gain, as the case may be, acquiesce in such institution; or
c) the cause of action, wholly or in part, arises.
Jurisdiction of state council
Subject to the other provisions of this Act, the State Commission shall have jurisdiction:-
a) to entertain
I. complaints where the value of the goods or services and compensation, if any, claimed
exceeds rupees twenty lakhs but does not exceed rupees onecrore; and
II. appeals against the orders of any District Forum within the State; and
b) to call for the records and pass appropriate orders in any consumer dispute which is pending
before or has been decided by any District Forum within the State, where it appears to the State
Commission that such District Forum has exercised a jurisdiction not vested in it by law, or has
failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or
with material irregularity.
Jurisdiction of National Council
Subject to the other provisions of this Act, the National Commission shall have jurisdiction—
a) to entertain
I. complaints where the value of the goods or services and compensation, if any, claimed
exceeds rupees one crore; and
II. appeals against the orders of any State Commission
b) to call for the records and pass appropriate orders in any consumer dispute which is pending
before or has been decided by any State Commission where it appears to the National
Commission that such State Commission has exercised a jurisdiction not vested in it by law, or
has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction
illegally or with material irregularity.
Limitation period

8. 1) The District Forum, the State Commission or the National Commission shall not admit a
complaint unless it is filed within two years from the date on which the cause of action has
arisen.
2) Not with standing anything contained in sub-section (1), a complaint may be entertained after
the period specified in sub-section (1), if the complainant satisfies the District Forum, the State
Commission or the National Commission, as the case may be, that he had sufficient cause for
not filing the complaint within such period: Provided that no such complaint shall be
entertained unless the National Commission, the State Commission or the District Forum, as the
case may be, records its reasons for condoning such delay.
ROLE OF VOLUNTARY ORGANIZATION IN PROTECTING CONSUMER RIGHTS
Consumer organizations are advocacy groups that seek to protect people from corporate abuse like
unsafe products, predatory lending, false advertising, astroturfing and pollution.
Consumer organizations may operate via protests, campaigning or lobbying. They may engage in single-
issue advocacy (e.g., the British Campaign for Real Ale (CAMRA), which campaigned against keg beer and
for cask ale)[citation needed] or they may set themselves up as more general consumer watchdogs, such
as the Consumers' Association in the UK.
One common means of providing consumers useful information is the independent comparative survey
or test of products or services, involving different manufacturers or companies (e.g., Which?, Consumer
Reports, etcetera).
Another arena where consumer organizations have operated is food safety. The needs for campaigning
in this area are less easy to reconcile with their traditional methods, since the scientific, dietary or
medical evidence is normally more complex than in other arenas, such as the electric safety of white
goods. The current standards on mandatory labelling, in developed countries, have in part been shaped
by past lobbying by consumer groups.
The aim of consumer organizations may be to establish and to attempt to enforce consumer rights.
Effective work has also been done, however, simply by using the threat of bad publicity to keep
companies' focus on the consumers' point of view.[citation needed]
Consumer organizations may attempt to serve consumer interests by relatively direct actions such as
creating and/or disseminating market information, and prohibiting specific acts or practices,or by
promoting competitive forces in the markets which directly or indirectly affect consumers (such as
transport, electricity, communications, etc.).
Consumer organizations India
(i) Consumer Guidance Society of India
(ii) The Consumers Eye India

9. Grahak Shakti-Bengaluru-Karnataka-Non profit Non Political Voluntary Consumer Organisation working
for the empowerment of Consumer for over two and half decades.Very dedicated and doing yeomen
service to the society. They have a large membership base with about 21 Life Timers who contribute
their time and energy honorarily. It is driven by a passionate Managing Trustee who leads from front
and puts in his money to steer the organisation. They are very principled and have earned Consumer
Confidence. They have faced several crisis for being bold and uncompromising in their outlook.
Remarkable indeed.
INDUSTRIAL POLICY RESOLUTION
Industrial Policy Resolution of 1956 (IPR 1956) is the resolution adopted by the parliament of India in
April 1956. It was first comprehensive statement on industrial development of India. The 1956 policy
continued to constitute the basic economic policy for a long time. This fact has been confirmed in all the
Five Year Plans.
According to this Resolution the objective of the social and economic policy in India was the
establishment of a socialistic pattern of society. It provided more powers to the governmental
machinery. It laid down three categories of industries which were more sharply defined. These
categories were:
a) Schedule a-those industries which were to be an exclusive responsibility of the state.
b) Schedule B-those which were to be progressively state-owned and in which the state would
generally set up new enterprises, but in which private enterprise would be expected only to
supplement the effort of the state; and
c) Schedule C-all the remaining industries and their future development would, in general be left
to the initiative and enterprise of the private sector.
Fair and non-discriminatory treatment for the private sector, encouragement to village and small- scale
enterprises, removing regional disparities, and the need for the provision of amenities for labour, and
attitude to foreign capital were other salient features of the IPR 1956.
NEW INDUSTRIAL POLICY OF THE GOVERNMENT
The Industrial Policy plan of a country, sometimes shortened IP, is its official strategic effort to
encourage the development and growth of the manufacturing sector of the economy.[1][2][3] The
government takes measures "aimed at improving the competitiveness and capabilities of domestic firms
and promoting structural transformation."[4] A country's infrastructure (transportation,
telecommunications and energy industry) is a major part of the manufacturing sector that usually has a
key role in IP.[citation needed]
Industrial policies are sector specific, unlike broader macroeconomic policies. They are sometimes
labeled as interventionist as opposed to laissez-faire economics. Examples of horizontal, economywide
policies are tightening credit or taxing capital gain, while examples of vertical, sector-specific policies

10. comprise protecting textiles from foreign imports or subsidizing export industries. Free market
advocates consider industrial policies as interventionist measures typical of mixed economy countries.
Many types of industrial policies contain common elements with other types of interventionist practices
such as trade policy and fiscal policy. An example of a typical industrial policy is import-substitution-
industrialization (ISI), where trade barriers are temporarily imposed on some key sectors, such as
manufacturing.[5] By selectively protecting certain industries, these industries are given time to learn
(learning by doing) and upgrade. Once competitive enough, these restrictions are lifted to expose the
selected industries to the international market
The major objectives of the new industrial policy are as
(i) Maintenance of a sustained growth in productivity and gainful employment;
(ii) rectification of the distortions or weaknesses that may have crept in the industrial structure as has
developed over the last four decades; (iii) consolidation of the strength build up during the last four
decades of economic planning and to build on the gains already made; (iv) attaining of international
competitiveness. The pursuit of the above cited objectives will be tempered by the need to preserve the
environment as well as the need to ensure the efficient use of available resources.
1. Industrial Licensing:
(i) Industrial licensing policy and procedures have also been liberalized from time to time. A full
realization of the industrial potential of the country calls for a continuation of this process of change.
(ii) Major policy initiatives and procedural reforms are called for in order to actively encourage and assist
Indian entrepreneurs to exploit and meet the emerging domestic and global opportunities and
challenges.
(iii) The bedrock of any such package of measures must be taken to the attainment of technological
dynamism and international competitiveness requires that enterprises to be enabled to respond swiftly
to fast-changing external conditions that have become characteristic of today's industrial world.
(iv) Government policy and procedures must be geared to assist entrepreneurs in their efforts.
(v) The system of reservation for public sector undertakings has been evolved towards the ethos of
greater flexibility and private sector enterprise has been gradually allowed to enter into many of these
areas on a case by case basis.
(vi) This calls for bold and imaginative decisions designed to remove restraints on capacity creation,
which at the same time, ensure that overriding national interests are not jeopardized.
(vii) Thus industrial licensing will henceforth be abolished for all industries, except those specified,
irrespective of the levels of investment.
2. Foreign Technology and Investment:

11. Foreign investment in India is regulated by the Govt, from the very beginning. Therefore, for any foreign
investment or technology, prior approval of the Govt, is necessary which leads to unnecessary delays.
Thus, the new industrial policy prepares a list of high invest priority and high technology in which
automatic approval will be given for direct foreign investment up to 51 percent equity.
Such clearance will be available if foreign equity covers the foreign exchange requirement for imported
capital goods. Moreover, in order to provide access to international markets, majority foreign equity
holding up to 51 per cent equity will be allowed for trading companies primarily engaged in export
activities.
Apart from this, a special Empowered Board would be constituted to negotiate with various large
international firms and approve direct foreign investment in selected areas.
Regarding the foreign technology agreements automatic approval will be given in identified high priority
industries up to a lumpsum payment of Rs. 1 crore, 5 per cent royalty for domestic sales and 8 per cent
for exports, subject to total payments of 8 per cent of sales over a period of ten years from the date of
agreement or seven years from commencement of production.
3. Public Sector:
The public sector has been the centre to the philosophy of our development. But in spite of its huge
investment, public sector enterprises could yield a very low rate of return on capital investment.
Numerous, public sector undertakings are incurring losses regularly.
Thus, in a bid to face the situation, the Govt, should restructure the potentially viable units. This priority
area for future growth of PSEs included-essential infrastructure, technology development, exploration
and exploitation of minerals and oil, products with strategic consideration etc.
Moreover, the new policy has now reduced the list of industries under public sector to 8 as against 17
industries reserved in 1956 policy. The new industrial policy also states that the govt will raise the
strength of those public sector units included in the list of reserved industries.
The Govt will also review the existing public sector undertakings. Industries earning higher profits will be
provided with much higher degree of management autonomy through MoU. Apart from all this, the govt
has also taken a decision to disinvest the equity shares of selected public units.
4. MRTP Limit:
Under the MRTP Act, firms having assets over a certain size of Rs. 100 crores since 1985 were classified
as MRTP firms. These firms were allowed to start only selected industries on a case by case approval.
But now the Govt has realized that the MRTP limit has become deleterious in its effect on industrial
growth.
Therefore, new policy states that the pre-enter scrutiny of investment decisions by the MRTP companies
will no longer be required.

12. Emphasis should be on controlling and regulating-the monopolistic, restrictive and unfair trade
practices. Moreover, provisions of the MRTP Act will be strengthened to enable the MRTP commission
to take appropriate action in respect of these practices.
5. Location Policy Liberalized:
Regarding the location of industries in cities of less than 1 million populations, no industrial approval is
required from the centre. In cities, with more than 1 million populations, industries other than those of
non-polluting in nature will be located outside 25 kms. of its periphery.
6. Abolition of Phased Manufacturing Programme:
To increase the pace of indigenization, phased manufacturing programme was enforced. The new policy
has totally abolished such programmes as the Govt, feels, due to substantial reforms of trade policy and
devaluation of rupee, there is no need to enforce such programmes.
7. Removal of Mandatory Convertibility Clause:
Banks and financial institutions have financed a large part of industrial investment that has followed a
mandatory convertibility clause.
This has provided no option to convert loans into equity this was an un-warranted threat to private firm.
The new industrial policy has removed this system.

13. Unit 3
CONCENTRATION OF ECONOMIC POWER
As business gets bigger, there is also an increased concentration of economic power. Excessive
concentration of economic power is rarely good for society. Monopoly makes a market dysfunctional ...
and society is at the mercy of the monopolist. Markets are efficient because of the interaction of many
sellers and many buyers ... together with widely available useful information.
Big does not necessarily mean bad ... but it has the potential to be bad when there is monopoly or near
monopoly. Oligopoly may not be much better than monopoly ... while overt collusion is usually against
the law, many behaviors in an oligopoly look very much like the behavior in a monopoly. Big does mean
concentration of economic power ... and this concentration of economic power usually ends up creating
distortion ... or worse ... in the economy, and in society.
Concentration of economic powers is often associated with high profits ... high profits arising more
because of the practice of "restraint of trade" than because of profits that are arising from operational
productivity. The longer term dynamic that emerges from concentration of economic power is a focus
on the protection and maintenance of the status quo.
When Professor Yunus talks about the systemic dysfunction of the socio-economic system, this is
something of what he is talking about. Concentration of economic power means that little resources are
left to be allocated to facilitate socio-economic improvement at the bottom of the pyramid.
At its worst, concentration of economic power is maintained by physical thuggery. In a more
sophisticated environment, the concentration of economic power is maintained by the interlocking
interests of business and politics ... in other words ... oligarchy. Rule of law should be a good thing ... but
all too often rule of law protects special interests more than it protects the public interest.
The matters are complex ... and to make matters worse ... the data to help understand the situation are
usually unavailable or difficult to access or understand. In this situation, the dialog is between differing
opinions rather than being built on meaningful data.
Community Analytics (CA) may help by having metrics that show how good socio-economic progress and
performance can be ... compared to the status quo that we have to live with because that is what those
in control most want!
INDIA’S FOREIGN CAPITAL AND COLLABORATIONS
A country needs natural resources, adequate levels of savings, latest technical know how, skilled human
resources etc. for economic development. Compared to developed countries, developing countries are
deficit of these resources. Lack of resources and skilled labor forces may prompt them to seek
assistance from economically well developed countries. Assistance may be in the form of either
technical knowledge or investments and very often, both. It may be through collaborations with foreign

14. countries or private companies. In India, such collaborations have always been predominant from the
time of independence itself. Government has always welcomed such foreign investments with some
restrictions giving new paths of co-operation. Also, its policy has undergone several changes since
independence. Foreign investment policy has a direct impact on inflow of foreign money, skills and
knowledge.
What are the merits of foreign capital?
No doubt, a developing country like India has many reasons to welcome fund inflows that can play an
important role in the economic development of our nation.
1. Some natural resources may go unnoticed or unexploited in the absence of technology. So,
welcoming new ideas can help in the effective use of resources and prevent them from going to
the waste.
2. Also, new technologies can help in upgrading present techniques giving more result thus saving
man power, money and time.
3. When new technologies are welcomed, employment opportunities also are created. So, it gives
many employment opportunities, particularly to new professionals with new ideas. So, skilled
labor force can be used in a better way.
4. They can supply domestic savings and capital formation thereby accelerating the investment
rate for the economic development of the country.
5. New technologies can bring new markets and marketing experts too, thus helping to sell Indian
goods in international markets for good prices.
6. Backbone of development of a country, of course, is agriculture and industry. Foreign capital can
provide infrastructure for both.
Foreign investment policy in India
Investment policy of India can be broadly classified into two periods – 1948-1990 and 1991 onward. Till
1990, there were only restricted policies and regulated inflows. But from 1991 onward, India witnessed
liberalization of foreign investment laws.
The restrictive period – 1948-1990
At First, the policy of independent India was reflected in Industrial Policy Resolution (IPR) which fully
accepted the participation of foreign capital, particularly with new technology ideas to promote
industrialization in our country. But certain regulations were also attached which required ownership
and control in Indian hands. In 1949, the then Prime Minister of India, Pt. JawaharLal Nehru made a
statement in constituent assembly bringing three major issues namely, no discrimination between
foreign and Indian enterprises, fair compensation to foreign investors if need arises for the
nationalization of a foreign enterprise and also allowed them to remit profits if foreign exchange

15. position allowed. Also, foreign collaborations were encouraged in those industries which required large
capital investments, production skills and processes, export industries and those which were needed for
country’s development as a whole. Also, foreign collaborations with equity participation were
appreciated which led to the sharp increase in its number. Thus, country witnessed outflow of profits,
dividends, and royalties which led to foreign exchange crisis in the late sixties.
Foreign Exchange Regulation Act (FERA) of 1973 is an act to consolidate and amend laws regulating
transactions indirectly affecting foreign exchange payments, currency exchange and conservation and
utilization of foreign exchange resources of the country. It included all non-banking companies and
branches with more than 40% foreign participation. During late seventies, India realized its poor
technology and products as compared with other nations. This was partially due to a highly protected
local markets and MNCs. However, Industrial Policy Statements of 1980 and 1982 gave a liberalization of
licensing rules and some exemptions under FERA.
Liberalization period- 1991 onwards
Introduction of new industrial policy in 1991 led to many radical changes in foreign investment policy.
To promote foreign funds and investments, many restrictions were removed and encouragement like
tax exemptions also given. It virtually welcomed foreign investors to almost every sector of India, even
renting foreign participation with advanced technologies and adding new skills. Unlike in the past, our
country is promoting international business and investments even through Government delegations
visiting other countries. They are trying to attract foreign investors to invest, seeing it as a part of
industrialization and exchange of new ideas, skills and better use of resources, both human and non-
human.
India’s foreign investment policy has come a long way since 1947. Though they were warmly welcomed
at first to promote rapid industrialization and foreign fund, certain restrictions and selections were
made later. But, since India’s technology did not improve as years passed by and conditions only
worsened more, further liberalization of foreign policy became necessary to attract more investors to
India. But often a question is raised as to whether foreign technology and investments help India in long
run or adversely affect our economy. But everyone agrees that India is far behind in the proper
utilization of resources and skilled people purely depending on foreign technology a lot. While many
developing countries like Japan and China are coming forward with many innovative ideas, we are just
depending on them, thinking how can we import their commodities at cheap rates and market it here,
fooling ordinary man. Disputes won’t send by adding a single point or two.
INDIAN PLANNING SYSTEM
The Planning Commission / Planning System is an institution in the Government of India, which
formulates India'sFive-Year Plans, among other functions.
The composition of the Commission has undergone a lot of change since its inception. With the prime
minister as the ex-officio Chairman, the committee has a nominated Deputy chairman, who is given the

16. rank of a full Cabinet Minister. Mr. Montek Singh Ahluwalia is presently the Deputy Chairman of the
Commission.
Cabinet Ministers with certain important portfolios act as ex-officio members of the Commission, while
the full-time members are experts of various fields like Economics, Industry, Science and General
Administration.
Present ex-officio members of the Commission, are Finance Minister P Chidambaram, agriculture
minister SharadPawar, home minister SushilkumarShinde, health minister GhulamNabi Azad, chemicals
and fertilisers minister M K Alagiri, communications minister KapilSibal, law minister Ashwani Kumar,
HRD minister M MPallamRaju and minister of state for planning Rajeev Shukla.[1]
The Commission works through its various divisions, of which there are three kind:
General Planning Divisions
Programme Administration Divisions
The majority of experts in the Commission are economists, making the Commission the biggest
employer of the Indian Economic Services.
Functions
The Planning Commission's functions as outlined by the Government's 1950 resolution are following:
1. To make an assessment of the material, capital and human resources of the country, including
technical personnel, and investigate the possibilities of augmenting those resources which are
found to be deficient in relation to the nation's requirement.
2. To formulate a plan for the most effective and balanced utilisation of country's resources.
3. To define the stages, on the basis of priority, in which the plan should be carried out and
propose the allocation of resources for the due completion of each stage.
4. To indicate the factors that tend to retard economic development.
5. To determine the conditions which need to be established for the successful execution of the
plan within the incumbent socio-political situation of the country.
6. To determine the nature of the machinery required for securing the successful implementation
of each stage of the plan in all its aspects.
7. To appraise from time to time the progress achieved in the execution of each stage of the plan
and also recommend the adjustments of policy and measures which are deemed important vis-
a-vis a successful implementation of the plan.

17. 8. To make necessary recommendations from time to time regarding those things which are
deemed necessary for facilitating the execution of these functions. Such recommendations can
be related to the prevailing economic conditions, current policies, measures or development
programmes. They can even be given out in response to some specific problems referred to the
commission by the central or the state governments.
From a highly centralised planning system, the Indian economy is gradually moving towards indicative
planning where the Planning Commission concerns itself with the building of a long-term strategic vision
of the future and decide on priorities of nation. It works out sectoral targets and provides promotional
stimulus to the economy to grow in the desired direction. It also plays an integrative role in the
development of a holistic approach to the policy formulation in critical areas of human and economic
development. In the social sector, schemes that require coordination and synthesis like rural health,
drinking water, rural energy needs, literacy and environment protection have yet to be subjected to
coordinated policy formulation. It has led to multiplicity of agencies. The commission has now been
trying to formulate and integrated approach to deal with this issue. The Planning Commission has asked
the States to hike the power tariff to save the ailing power sector. It also called upon the States to utilise
the power subsidy for improvement to essential services like drinking water supply, education and
health for promoting inclusive growth.[2]
Criticism
The Planning Commission has faced criticism for spending 3.5 million (US$64,000) to renovate two
blocks of toilets,[3][4]
while declaring a very low, and arguably unrealistic, threshold of poverty of a
monthly consumption of 859.6 (US$16) in urban and 672.8 (US$12) in rural areas.[

18. Unit 4
GOVERNMENT POLICY CONCERNING DEVELOPMENT OF BACKWARD AREAS
In the facilities location problems, whether multi-plant or single plant, the industrial policies of the
governments are very important inputs in the overall consideration. In India, the industrial development
of backward areas for balanced regional development of the country has always been emphasized. This
has been attempted mainly through:
1. Licensing policy
2. Location of public sector projects
3. Investment subsidy
4. Concessional finance
5. Concession on income tax import duty etc and
6. Setting up of industrial estates
All the districts in the country have been classified into four categories:
A. No industry districts an ‘special region’ districts,
B. Moderately backward districts
C. Least backward districts, and
D. Non-backward districts
The A, B, and C categories are eligible inter-alia for subsidy on investment in fixed assets in an industrial
unit, as given below:
Category Percent Subsidy Maximum Limit Per unit
A. 25 Rs 25 lakh
B. 15 Rs15 lakh
C. 10 Rs 10 lakh
D. not eligible for subsidy
Taking cognizance of the importance of infrastructural facilities, Government of India provides for one
third of the costs of the development of infrastructural facilities in the ‘no industry’ districts, the
remaining two thirds of the cost to be met by the concerned State Government. However, the maximum
limit of Central assistance in this scheme is Rs 2 crore in a district. Even companies coming under MRTP
have been provided some concessions if they locate new plants in category “A” and “B” districts.
Government of India also proposes to help the “no-industry” districts by establishing a ‘nucleus’ plant in
each such district, which would lead to a number of ancillary units. The State Governments give various
incentives to industries so that they may locate their plants in the backward areas.
Notwithstanding such helpful measures from the governments, the backward area developed has to be
very successful. More than half of the industrial licenses issued during the period 1975-79 had gone to
the backward areas in the developed states. Fourteen cities and towns accounted for 60 per cent of

19. total employment in the industrial estates in the country. While Madras City accounted pr 82 percent of
employment in industrial estates in Tamil Nadu, Bombay and Pune accounted for 65 per cent of
employment in industrial estates in Maharashtra, and similarly the cities of Ahmedabad, Baroda and
Surat accounted for 60 percent in Gujarat. Regarding investment Subsidy, only 15 percent of the eligible
districts accounted for 56 percent of the subsidy amount. Moreover, most of these district are situated
close to large urban centers – such as Mysore and Dharmapuri near Bangalore, North Arcot near Madras
and Medak near Hyderabad. In the case of the concessional finance provided by all India financial
institutions (such as IDBI, IFCI, ICICI) only 22 of the 247 districts eligible for concessional finance received
the total amount of concessional finance disbursed. It is worth noting that that most of these districts
were in the developed states. Similarly there does not seem to have been a conscious effort to locate
various public sector units in the backward areas, barring a few exceptions such as that of Hindustan
Machine Tools, Bharat heavy Electricals Ltd and Indian Telephone industries.
Due to such performance of these governmental measures which seem to have been counterproductive
the implementation of the backward area industrial policy has come under severe criticism. For
instance: The so called emphasis on development of backward reasons via incentives to entrepreneurs,
has enabled the State to provide subsidies to industry that it was not otherwise in a position to give. The
policy for development of backward areas is no more than a red herring.
The above told is debatable. But the point is that there are a number of factors which influence the
plant location decision and all these have not been considered in an integrated manner by the policy
makers. The emphasis has been more on financial incentives. However, the amount of ‘pull’ generated
by the large cities, already industrialized towns and other developed areas needs a deeper analysis by
the decision makers in order to come up with suitable measures to counter these actors exerting the
pull in a direction opposite that of the intended objective. The case of backward area development
highlights the importance of the various issues – qualitative and quantitative, short term and long term,
economic and behavioral – that influence the plant location decision. The line dividing ‘political’ issues
and social and behavioral issues is not always clear.
GOVERNMENT POLICY WITH REGARD TO EXPORT PROMOTION AND IMPORT SUBSTITUTION
LIST OF EXPORT PROMOTION SCHEMES
To achieve the objectives laid down under the Foreign Trade Policy 2004-09 and double India’s
percentage share of global merchandise trade by the year 2009, the government is committed to
providing a stimulus to exports through various export promotion schemes from time to time. Details of
the existing Export Promotion Schemes are as follows:
1. Advance licensing scheme
2. Duty Free Replenishment Certificate (DFRC) scheme
3. Duty drawback scheme
4. Export Promotion Capital Goods (EPCG) scheme
5. Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software
Technology Parks (STPs) scheme

20. 6. Served from India scheme
7. Target Plus scheme
8. Duty Entitlement Pass Book (DEPB) Scheme
9. VisheshKrishiUpajYojana
The Government has formulated a number of export promotion schemes to support and promote
exports. Except for Duty Drawback Scheme, the policy framework for various export promotion schemes
is laid down in the Foreign Trade Policy 2004-09, whereas the procedures governing the schemes are
detailed in the Handbook of Procedures, VoI-I 2004-09. The Department of Revenue has issued
notifications to operationalise the scheme.
The objectives of most schemes are to neutralize the incidences of levies and duties on inputs used in
export products, based on the fundamental principle that duties and levies should not be exported.
Presently, the major schemes are either duty exemption or duty remission schemes. Duty exemption
schemes enable duty-free import of inputs required for export production. An Advance Licence is issued
as a duty exemption scheme. A Duty Remission Scheme enables post export replenishment / remission
of duty on inputs used in the export product. Duty remission schemes consist of (a) DFRC; (b) DEPB
Scheme and Drawback. DFRC permits duty-free replenishment of inputs used in the export product.
DEPB allows drawback of import charges on inputs used in the export product. The Drawback Scheme
intends to neutralize the incidence of central taxes paid on inputs used in the manufacture of export
goods.
Besides, there are other schemes in operation which are basically in the nature of reward schemes to
reward high performing exporters. Target Plus, Served from India and VisheshKrishiUpajYojana are
reward schemes. Rewards are given on the basis of incremental exports / export turnover and such
rewards have no linkage whatsoever with the duties and taxes borne on export goods.
IMPORT SUBSTITUTION
Governmentstrategy that emphasizes replacement of some agricultural or industrialimports to
encourage local production for local consumption, rather than producing for exportmarkets. Import
substitutes are meant to generate employment, reduce foreign exchangedemand, stimulate innovation,
and make the country self-reliant in critical areas such as food, defense, and advanced technology.
Import substitution industrialization or "Import-substituting Industrialization" (called ISI) is a trade and
economicpolicy based on the premise that a country should attempt to reduce its foreign dependency
through the local production of industrialized products. The term primarily refers to 20th century
development economics policies, though it was advocated since the 18th century.
A strategy for economic development which encourages industrial growth within a nation in order to
reduce imports of manufactures, save foreign exchange, provide jobs, and reduce dependency. The
United Nations Commission for Latin America promoted import substitution policies in the 1960s, but
they were not successful, and such policies have been replaced by strategies grounded on export-led
industrialization.

21. Import substitution industrialization (ISI) is a trade and economicpolicy that advocates replacing foreign
imports with domestic production.[1]
ISI is based on the premise that a country should attempt to reduce
its foreign dependency through the local production of industrialized products. The term primarily refers
to 20th-century development economics policies, although it has been advocated since the 18th century
by economists such as Friedrich List
Advantages and disadvantages
The major advantages claimed for ISI include (1) increases in domestic employment, i.e., reducing
dependence on non-labor-intensive industries such as raw resource extraction and export, (2) resilience
in the face of a global economic shocks, such as recessions and depressions, and (3) less long-distance
transportation of goods and less concomitant fuel consumption and greenhouse gas and other
emissions.
Disadvantages claimed for ISI are that (1) the industries it creates are inefficient and obsolete, as they
are not exposed to internationally competitive industries, which constitute their rivals, and (2) the focus
on industrial development impoverishes local commodity producers, who are primarily rural.
Rather than maintain an inward-looking economy, the idea of catching up can be much faster with
strong competition rather than with domestic competition with people with similar levels of human
capital. Furthermore, with small external scale economies, the country's costs maintain high and
knowledge accumulation will not steadily or slowly increase. Goldar takes note that in India "that
policies of import substitution and domestic industrial licensing have led to considerable inefficiency in
the industrial sector, and that policies for checking concentration (restrictions against large industrial
houses, discrimination in favour of small scale units, etc.) have resulted in significant loss of scale
economies," (Goldar 144). Additionally, import substitution was in place as a remedy for mass poverty,
unemployment and economic growth however,
"The collections of Balassa and Little et al. made abundantly clear that import substitution policies had
created major distortions and had thereby resulted in a misuse of resources. 33 So it was increasingly
evident that something needed fixing. Two other sources of concern appeared in the early 1970s and
suggested that there were other things that needed fixing as well. The first, already referred to, was that
the demand for labor in the new activities was growing more slowly than the rates of growth of output
and investment had led most observers to expect. As a consequence of the slow growth of employment
(and other things), poverty was alleviated only modestly," (Bruton 917).

22. Unit 5
CONTROLLER OF CAPITAL ISSUES
Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived
authority from the Capital Issues (Control) Act, 1947.
Functions and responsibilities
CCI has to be responsive to the needs of three groups, which constitute the market:
the issuers of securities
the investors
the market intermediaries.
CCI has three functions rolled into one body:
1. quasi-legislative,
2. quasi-judicial and
3. quasi-executive
It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its
executive function and it passes rulings and orders in its judicial capacity. Though this makes it very
powerful, there is an appeal process to create accountability. There is a Securities Appellate Tribunal
which is a three-member tribunal and is presently headed by a former Chief Justice of a High court - Mr.
Justice NK Sodhi. A second appeal lies directly to the Supreme Court.
Powers
For the discharge of its functions efficiently, CCI has been vested with the following powers:
1. to approve by−laws of stock exchanges.
2. to require the stock exchange to amend their by−laws.
3. inspect the books of accounts and call for periodical returns from recognized stock
exchanges.
4. inspect the books of accounts of a financial intermediaries.
5. compel certain companies to list their shares in one or more stock exchanges.
6. levy fees and other charges on the intermediaries for performing its functions.
7. grant license to any person for the purpose of dealing in certain areas.
8. delegate powers exercisable by it.
9. prosecute and judge directly the violation of certain provisions of the companies Act.
10. power to impose monetary penalties.

23. GOVERNMENT POLICY WITH REGARDS TO SMALL SCALE INDUSTRIES
A small scale industry (SSI) is an industrial undertaking in which the investment in fixed assets in plant
&machinery,whether held on ownership term or on lease or hire purchase, does not exceed Rs. 1Crore.
However, this investment limit is varied by the Government from time to time.
Entrepreneurs in small scale sector are normally not required to obtain a licence either from the Central
Government or the State Government for setting up units in any part of the country. Registration of a
small scale unit is also not compulsory. But,its registration with the State Directorate or Commissioner of
Industries or DIC's makes the unit eligible for availing different types of Government assistance like
financial assistance from the Department of Industries, medium and long term loans from State
Financial Corporations and other commercial banks, machinery on hire-purchase basis from the National
Small Industries Corporation,etc. Registration is also an essential requirement for getting benefits of
special schemes for promotion of SSI viz. Credit guarantee Scheme, Capital subsidy, Reduced custom
duty on selected items, ISO-9000 Certification reimbursement & several other benefits provided by the
State Government.
The Ministry of Micro, Small and Medium Enterprises acts as the nodal agency for growth and
development of SSIs in the country. The ministry formulates and implements policies and programmes
in order to promote small scale industries and enhance their competitiveness. It is assisted by various
public sector enterprises like:-
 Small Industry Development Organisation (SIDO) is the apex body for assisting the Government
in formulating and overseeing the implementation of its policies and
programmes/projects/schemes.
 National Small Industries Corporation Ltd (NSIC) was established by the Government with a view
to promoting, aiding and fostering the growth of SSI in the country, with focus on commercial
aspects of their operation.
 The Ministry has established three National Entrepreneurship Development Institutes which are
engaged in development of training modules, undertaking research and training and providing
consultancy services for entrepreneurship development in the SSI sector. These are:-
a. National Institute of Small Industry Extension Training (NISIET) at Hyderabad,
b. National Institute of Entrepreneurship and Small Business Development (NIESBUD) at
NOIDA
c. Indian Institute of Entrepreneurship (IIE) at Guwahati
 The National Commission for Enterprises in the Unorganised Sector (NCEUS) has been
constituted with the mandate to examine the problems of enterprises in the unorganised sector
and suggest measures to overcome them.
 Small Industries Development Bank of India (SIDBI) acts as apex institution for financing SSIs
through various credit schemes.

24. Provisions relating to taxation of Small Scale Industries
In a developing country like India, Small Scale Industries play a significant role in economic development
of the country. They are a vital segment of Indian economy in terms of their contribution towards
country's industrial production,exports,employment and creation of an entrepreneurial base.These
industries by and large represent a stage in economic transition from traditional to modern technology.
Small industry plays a very important role in widening the base of entrepreneurship. The development
of small industries offers an easy and effective means of achieving broad based ownership of industry,
the diffusion of enterprise and initiative in the industrial field.
Given their importance,the Government policy framework right from the First plan has highlighted the
need for the development of SSI sector keeping in view its strategic importance in the overall economic
development of India. Accordingly, the policy support from the Government towards Small Scale
Industries has tended to be conducive and favourable to the development of small entrepreneurial
class. Government accords the highest preference to development of SSI by framing and implementing
suitable policies and promotional schemes.
The most important promotional policy of the Government for the SSI's is fiscal incentives in the form of
tax concessions and exemptions of direct or indirect taxes leviable on production or profits.
RESPONSIBILITIES OF THE BUSINESS AS WELL AS THE GOVERNMENT TO PROTECT THE
ENVIRONMENT
All businesses face the ethical quandary of how to maximize profits without harming or exacerbating
harm already incurred on the society and environment at large. Corporations must operate within
certain parameters in order to maintain its economic standing. In social contexts, businesses must find
an economically viable function that poses no detriment to its investors, employees, consumers and the
general public. They must also find a function without polluting the environment, be it air, water or land.
Social Responsibilities
Society consists of all the individuals, families, organizations and entities affected by an activity or
product. Businesses must maintain standards that do not harm the members of that society. Going a
step further, they should, ideally, operate in a manner that promotes the growth and well-being of that
society. Businesses have a responsibility to help weaker and less traditional members of society; ones,
when grouped together, lack a large enough collective voice to speak for themselves. At the same time,
they must reconcile a way to protect traditional values and culture. Companies must promote social
living by acting as a source of employment to qualified members of the society. Businesses should also
promote to the society in which it operates the benefits of an active healthy lifestyle through sports and
culture. Finally, it is the business' responsibility to assist in the development and research areas of
science, health, technology and education.
Environmental Responsibilities

25. Air, water and land pollution tend to be the most detrimental forms of pollution. They are also most
often associated with production and manufacturing attributed to large corporations. It is the
responsibility of businesses to operate in a manner that causes the least amount of depletion of
resources, the least amount of pollution and the least amount of effect on the flora and fauna in the
surrounding environment. Businesses must think globally in developing production strategies. As for
environmental responsibilities, businesses must act in three roles to protect the environment:
preventive, curative and awareness. The preventive role of businesses includes keeping production
waste, be it gaseous, liquid or solid, out of its respective medium. Furthermore, finding uses for
production waste or methods of disposal should be high in businesses' ethical priorities. The curative
role of businesses consists of taking steps to fix damage previously incurred. These steps can and should
occur in conjunction with preventive steps. A business' awareness role should include proper education
of employees and the general public of the "causes and consequences" of different forms of pollution.
Impact
If businesses choose to operate outside the parameters set by government, responsibility and personal
conscience, the consumer backlash can prove to be detrimental to the company's financial stability.
Society's attitude toward social and environmental callousness has stimulated many businesses to
accentuate the steps taken to keep the members of its society safe and healthy. Also, employees may
find it ethically challenging to work for a company with whose policies on responsibility they do not
agree.
GOVERNMENT CLEARANCE FOR ESTABLISHING NEW ENTERPRISE
Obtain PAN No from Income Tax Dept
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a
laminated card, by the Income Tax Department.
Open a Current Account
Open a current account with a Bank.
Register a limited Liability Partnership (LLP)
The Limited Liability Partnership (LLP) is an alternative corporate business vehicle that provides the
benefits of limited liability but allows its members the flexibility of organizing their internal structure as
a partnership based on a mutually arrived agreement.
Register Your Company (Pvt. Ltd / Public Ltd Company)

26. Step by Step Procedure for Incorporating ( Starting) a Private Limited or a Public Limited Company in
India
Register For Service Tax
Service tax is, as the name suggests, a tax on Services. It is a tax levied on the transaction of certain
services specified by the Central Government under the Finance Act, 1994.
It is an indirect tax (akin to Excise Duty or Sales Tax) which means that normally, the service provider
pays the tax and recovers the amount from the recipient of taxable service.
Register for VAT / Sales Tax
VAT is a multi-point destination based system of taxation, with tax being levied on value addition at each
stage of transaction in the production/ distribution chain.
The State Governments, through Taxation Departments, are carrying out the responsibility of levying
and collecting VAT in the respective States. While, the Central Government is playing the role of a
facilitator for the successful implementation of VAT.
Excise Duty (check Applicability)
Indirect tax levied on those goods which are manufactured in India and are meant for home
consumption. Cetain industries are exempted from payment of Excise Duty.
Shop & Establishment Act
Shop and Establishment Act is to provide statutory obligation and rights to employees and employers in
the unorganised sector of employment, i.e., shops and establishments. A state legislation; each state has
framed its own rules for the Act.
Customs Duty
Customs Duty is Indirect Tax levied on Imports as well as Exports.
File Entrepreneurship Memorandum at DIC (optional)
Although not mandatory, you may File Part I of Entrepreneurs Memorandum to the District Industries
Centre. This may be necessary for claiming certain incentives / subsidies and for certain formalities at
the state level.
Apply For TAN
All those persons who are required to deduct tax at source or collect tax at source on behalf of Income
Tax Department are required to apply for and obtain TAN.

27. Find State Specific Guideline & Procedures
Permissions Required at the Construction Stage
1. Application for plot/shed, offer letter, payment of earnest money deposit
2. Allotment of plot/shed, payment of balance occupancy price, taking over possession thereof
3. Application for issuance of NOC/SSI registration
4. Execution of Lease Agreement
5. Application for grant of connection for construction water
6. Application for grant of connection for construction power
Post Construction Clearances
1. Building completion/ Drainage completion/ Tree plantation certificate
2. Permission for mortgage
3. No objection certificate from Pollution Control Board
4. Final fire clearance
5. No objection certificate from Environment Department
6. Industrial safety permit
7. Sanction of permanent power
8. Sanction of permanent water and sewerage connection
Employee’s Provident Fund
Applicable for establishments employing 20 or more persons and engaged in industry notified
under Section 6 of Act.
Employee’s State Insurance (ESI) Scheme
The Act is applicable to non-seasonal factories employing 10 or more persons.
The Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-
motor transport undertakings and newspaper establishments employing 20* or more persons.