The Parliament has passed the Industries (Development and Regulation) Amendment Bill, 2015. The Bill amends the Industries (Development and Regulation) Act, 1951.
It was first was passed in Lok Sabha in December 2015 and later in Rajya Sabha in April 2016. Now it will go for Presidential assent as per Article 111 of the Indian Constitution.
Key Points
The bill seeks to bring industries engaged in the manufacture of potable alcohol under the exclusive control of States in all respects.
It amends 1st schedule of the parent Act to bring required changes for regulating industries manufacturing potable alcohol.
However, Union Government will continue to be responsible for formulating policy and regulating foreign collaboration for all products of fermentation industries, including industrial and potable alcohol.
Industries (Development and Regulation) Act, 1951
It provides for development and regulation of certain industries including telecommunications, transportation, metallurgical, fermentation (which includes production of alcohol) among others.
The 1st schedule of the Act includes all industries that are regulated under the Act Background In the Bihar Distillery versus Union of India case (1997), Supreme Court had demarcated the regulation of production of alcohol between centre and states.
The apex court had ruled that Union Government should regulate the production of alcohol for industrial use and states should regulate the production of alcohol for potable purpose (domestic consumption).
It also had held that where the removal or clearance is for industrial purposes, the levy of excise duty and all other control should be with the Union Government. The Bill conforms to the Supreme Court’s decision.
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