| Issue 22 Vol I, August 31, 2006 | Archive |
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Indian Industrial Policy Astray
38 industries identified to be developed under the Act, could only be installed with the permission or license of the Govt. of India, at a place to be decided by the Govt. in the public or the private sector as the Govt. would want, the produce to be used as per instructions, orders or regulations to be issued or framed. A large public sector as a result came into being, employing 71% of the 2 crore and seventy three lakh workers of the organised sector by the year, 1990, when an era of its disbanding started, on the pretext that workers were not willing to work, the public sector was going in heavy losses, the competition with private sector was tough and above all the industrial production was none of the tasks of a Govt. A huge industrial empire was sold for pea nuts because the inmates were not able to maintain or manage it. A legacy was destroyed, a permanent asset was dissolved, an empire was liquidated, a goldmine having become uneconomical for want of management, integrity and commitment was closed for ever. A reverse gear was engaged to destroy – the ideal for providing justice social, economic and political, enshrined in preamble of the Constitution of India which was sought to be reiterated and strengthened by adding the words "Socialist", and "Secular" with the already existing words sovereign Democratic Republic to read, "we the people of India, having solemnly resolved to constitute India into Sovereign Socialist Secular Democratic Republic. What was the concept of Socialism? It was never defined. What steps were taken towards this direction nobody knows? The Industrial Policy Resolution passed in 1948, opting a mixed economy, instead of Socialistic of Capitalistic one, was not reviewed or reconsidered, but done away with. Direction in Part IV to the State to apply directive principles in making laws to secure a social order in which justice social economic and political, shall inform all the institutions of the national life were never following seriously Article 39, that the ownership and control of the material resources of the community are so distributed as best to sub serve the common good; that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment, and that "the State shall endeavour to secure by suitable legislation or economic organisation or in any other way, to all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work, securing decent standard of life, and full enjoyment of leisure and social and cultural opportunities", Remained as usual a decorative part of the Constitution. By merely adding the word "socialist" in the preamble neither the existing provisions in directive principles became enforceable nor were the states ordained to take effective steps to words that direction or to adopt them at least as a fundamental principle in making laws. As against these provisions the wealth, the means the resources of production continued concentrating in a few hands. The gap between the rich and the poor widened. The thrust of laws being enacted was not towards mitigating this gap rather every effort being made to strengthen the hands of the men in control of these resources by providing facilities, through legislation; to grab as much resources as they wish more. Right to property, originally a fundamental right, and Art. 31 providing that no person shall be deprived of his property save by authority of law, was taken away from Chapter I, it ceased to be a fundamental right, and was placed in Chapter IV as Art 300 A, to be a Constitutional right instead of being a fundamental right. Along side Art. 31A was added to save certain legislations including for acquisition of estates not to be void for the reason that it takes away or abridges fundamental rights. Taking advantage the private sector had the Land Acquisition Act amended so as to add to the powers of the state to acquire land not only for public sector but also for a private company incorporated under the Companies Act, a private society or a co-operative Society. From here onwards the private Companies, instead of purchasing land directly from owners, started using Govt. agency as an instrument for acquisition of lands, as much as they wanted, through process under Land Acquisition Act at lower than market prices. The latest favour to the private sector is the legislation for creation of Special Economic Zones. The Govt. of India has passed Special Economic Zones Act, 2005. Various states have also created Special Economic Zones. The Acts for Special Economic Zones having been enacted as consequence of the Scheme of April, 2000 to provide for an internationally competitive environment for exports, depart from their objective in a major way by including private developers, who after obtaining letter of approval, know how to manage and submit particulars of the area, the land, which he has identified as Social Economic Zone. The land is to be acquired by the state for the developer and the developer has been give free hand to use the major part of the land for purposes other than industry. Real estate, business is not prohibited rather permitted. It defeats the aim of providing competitive market for export. The provisions of the law for Social Economic Zones make it quite clear that these is a bonanza for a particular propertied class to add more to the properties than to ensure that resources of production do not concentrate in a few hands. In Maharashtra a Social Economic Zone resistance organisation has been formed, wanting the real, sustainable and decentralized industrialisation, to resist usurpation of land and conferring billions of rupees of subsidy to the corporate sector. Such a measure of protest is required in all corners of India. It is time for people of India to awake and see what is happening to them, and to the constitution. Joginder Singh Toor, Advocate, jogindersingh_toor@yahoo.com |
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THE
task before the Govt. of India after independence was to have its own
industrial policy. The Constituent Assembly was ceased of the drafting the
constitution. It was not having drafting of the industrial policy in its
ambit. To any of its eight Sub Committees, industrial policy drafting or its
making was not entrusted. As a result, before the constitutional provisions
attained finality in the Assembly, the Govt. of India passed Industrial
Resolution on 6th of April, 1948. As consequence there of and keeping in
view the impact of industrial growth on overall development of the country,
Industrial (Development & Regulation) Act passed in 1951, took note of the
spheres the industry would cover.