The Vanishing MRTP Act: Will Only the Grin Remain?

A series of measures have been announced by the government during the last few weeks purportedly to ensure increase in production and productivity. The two most important aspects of thesee measures are the liberalisation of industrial licensing provisions and the proposed amendments of the MRTP Act. When the MRTP Act was passed and the new industrial licensing policy was adopted in 1970, the idea was that these instruments would be used to bring about structural changes in respect of the existing concentration of economic power. The Joint Sector as defined by the one side, and Section 27 of the MRTP Act under which undue concentrations could be broken up, on the Dutt Committee, on the other, were expected to be used for this purpose. The trend, however, has been not towards such purposeful use of the instruments available, or their further rationalisation. It has been put on an appearance of radicalism while gradually removing the teeth of the regulations so as to help big business while, at the same time, taking care to see that adequate benefit is obtained in the process by those in positions of authority. In this situation, one does not quite see the purpose of maintaining a Monopolies Commission, an MRTP Act or Industrial Licensing. Of course, just as every statement which has retracted from the basic objectives has paid lip service to the Industrial Policy Resolution of 1956, so also perhaps it is necessary to have instruments like the IDR Act, the MRTP Act and other controls for the sake of appearance, and also to do the necessary arm-twisting so as to ensure that various business elements do not forget to whom they owe their prosperity and to whom they should pay proper obeisance, and much else.