Explanation: The committees on industrial licensing policy review not only pointed out several shortcomings of the policy, but also accepted the useful role of industrial licensing.

Finally, it was in 1969 that the new industrial licensing policy was announced which affected the following major changes in the area:

1. The Monopolistic and Restrictive Trade Practices (MRTP) Act was passed. The Act intended to regulate the trading and commercial practices of the firms and checking monopoly and concentration of economic power.
2. The firms with assets of Rs. 25 crore or more were put under obligation of taking permission from the Government of India before any expansion, green-field venture and takeover of other firms (as per the MRTP Act). Such firms came to be known as the ‘MRTP Companies’. The upper limit (known as the ‘MRTP limit’) for such companies was revised upward to Rs. 50 crore in 1980 and Rs. 100 crore in 1985.
3. For the redressal of the prohibited and restricted practices of trade, the government did set up an MRTP Commission.

Source: Ramesh Singh