Pursuant to the policy of denationalization, hundreds of takeover small scale units were returned to their original owners. A large number of industries, such as cement, ghee etc which had been reserved for the public sector under the Economic Reforms Order, 1972, have been given to private sector. Import of machinery required for following was exempted in part or in full, from customs duty,
1. Industries of national importance.
2. Industries located in less developed areas.
3. Balancing of existing units of specific industries.
Recognizing that confidence of the private sector was a prerequisite to industrial investment, the policy regarding nationalization was announced in clear terms, by the Government in 1977, demarcating the industries between the public and private sectors.