During the first four post-independence decades, the Indian State invested heavily in creating large-scale integrated capacities in the public sector as a part of the overall development strategy aiming at self-sufficiency in heavy and basic industries. In accordance with the prevalent economic idiom of socialism and centralized planning, this industry producing the universal industrial intermediate was earmarked for state control. The policy regime governing the industry during these years consisted of : Capacity control measures, i.e., licensing of capacity. , large-scale capacity creation was reserved for the public sector units (PSU) in a predominantly mixed economic environment. Private sector had a limited role to play.
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