Central

Schedule 2 of The Industries (Development and Regulation) Act, 1951

THE SECOND SCHEDULE [Seesection 6(4)] Functions which may be assigned to Development Councils:—

(1)Recommending targets for production, co-ordinating production programmes and reviewing progress from time to time.
(2)Suggesting norms of efficiency with a view to eliminating waste, obtaining maximum production, improving quality and reducing costs.
(3)Recommending measures for securing the fuller utilisation of the installed capacity and for improving the working of the industry, particularly of the less efficient units.
(4)Promoting arrangements for better marketing and helping in the devising of a system of distribution and sale of the produce of the industry which would be satisfactory to the consumer.
(5)Promoting standardisation of products.
(6)Assisting in the distribution of controlled materials and promoting arrangements for obtaining materials for the industry.
(7)Promoting or undertaking inquiry as to materials and equipment and as to methods of production, management and labour utilisation, including the discovery and development of new materials, equipment and methods and of improvements in those already in use, the assessment of the advantages of different alternatives and the conduct of experimental establishments and of tests on a commercial scale.
(8)Promoting the training of persons engaged or proposing engagement in the industry and their education in technical or artistic subjects relevant thereto.
(9)Promoting the retaining in alternative occupations of personnel engaged in or retrenched from the industry.
(10)Promoting or undertaking scientific and industrial research, research into matters affecting industrial psychology and research into matters relating to production and to the consumption or use of goods and services supplied by the industry.
(11)Promoting, improvements and standardisation of accounting and costing methods and practice.
(12)Promoting or undertaking the collection and formation of statistics.
(13)Investigating possibilities of decentralising stages and processes of production with a view to encouraging the growth of allied small scale and cottage industries.
(14)Promoting the adoption of measures for increasing the productivity of labour, including measures for securing safer and better working conditions and the provision and improvement of amenities and incentives for workers.
(15)Advising on any matters relating to the industry (other than remuneration and conditions of employment) as to which the Central Government may request the Development Council to advise and undertaking inquiries for the purpose of enabling the Development Council so to advise, and
(16)Undertaking arrangements for making available to the industry information obtained and for advising on matters with which the Development Councils are concerned in the exercise of any of their functions. 37

Summary

The Second Schedule lists the specific tasks that the Central Government can give to Development Councils to improve industrial productivity.
These Councils recommend production targets and review the progress made by an industry over time.
They suggest standards for efficiency to help factories eliminate waste and reduce their overall costs.
The Councils promote better marketing and distribution systems to ensure consumers are treated fairly.
They encourage the training of people who work in the industry and support their technical education.
The Councils can also conduct scientific research into methods of production or how people consume goods.

Practical examples

1In May 2025, the Development Council for the heavy machinery industry sets a target for factories in Pune to increase their output of road rollers by ten percent to meet new construction demands.

2The Textile Development Council creates a new training program for weavers in Varanasi to help them learn how to use modern power looms more safely and efficiently.

3A Council for the chemical industry conducts a study to find out why certain fertilizers are becoming too expensive for farmers and suggests a new way to distribute them directly from the factory.

FAQ

1. What is the main purpose of the Second Schedule of the Industries (Development and Regulation) Act, 1951?

The Second Schedule of the Industries (Development and Regulation) Act, 1951 lists the functions, such as setting production targets and promoting research, that the government can assign to Development Councils.

2. Can a Development Council help with marketing under the 1951 Industries Act Schedule 2?

Yes, Schedule 2 of the Industries (Development and Regulation) Act, 1951 allows Councils to promote better marketing and help create distribution systems that satisfy consumers.

3. Does Schedule 2 of the Industries Development Act cover how factories handle waste?

Yes, Schedule 2 of the Industries (Development and Regulation) Act, 1951 says Councils can suggest norms of efficiency specifically to eliminate waste and improve quality.

4. Can a Development Council decide how much workers are paid under Schedule 2 of the Industries Development Act?

No, Schedule 2 of the Industries (Development and Regulation) Act, 1951 specifically excludes advising on the remuneration or pay and the conditions of employment for workers.

Test yourself

Q1.Under Schedule 2 of the Industries (Development and Regulation) Act, 1951, which body is responsible for recommending production targets?

Q2.Which activity is NOT a function of a Development Council under Schedule 2 of the Industries (Development and Regulation) Act, 1951?

Q3.Under Section 6 and Schedule 2 of the Industries (Development and Regulation) Act, 1951, why might a Council investigate decentralizing production?

Q4.How does Schedule 2 of the Industries (Development and Regulation) Act, 1951 address the needs of consumers?

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