There have been five development plans before the Iranian Islamic revolution . The first two programs were based on agricultural development. The Industrial development was mentioned for the first time in the third development plan and was based on territorial revisions and land owners capital transfer , so the first nuclei's of industrial investment would be created .
The above mentioned capitalists were not familiar with industrial management terminology, so the industrial management organization and the industrial development bank were created in order to help the financial resources and back up the capital creating bases. The need of creating a powerful and universal organization was taken into attention in the third plan in order to develop the industries and accelerate the industrialization of the country. Idro was created in such circumstances in June 1967 with the approval of the economical council.
According to the first article of the foundation of "Industrial development and renovation organization of Iran (IDRO)" (approved on June1967) ,it's responsibilities has been defined as follows :
" The government has been accorded the right to create an independent organization named " Industrial development and renovation organization of Iran " In order to expand and modernize the industries and mining in Iran , using scientific and technical researches , managers formation , creation of industrial , mining and services companies or participation in the capital of existent companies and also to give technical support to industrial and mining units .
It has been mentioned in the second article that " this organization together with its affiliated companies and units are totally independent and are not subject to the rules , general articles and general accountancy concerning governmental and pro-governmental organizations unless expressed by mentioning IDRO's name â€¦"
The sixth article clarify that " the government considering the transfer of it's industrial and mining units to IDRO has to act as follows:
A- The unit has to be evaluated by IDRO's management council which will announce it's value by taking its profits into consideration.
B- In what concerns the transfer of loss making units and in the case of industries that are to be setup in some regions of the country due to obligations and are considered to be loss making by IDRO's management council and the planning organization, the government will have to accord necessary guarantees to cover eventual losses and then order the transfer or foundation of such units.
It is mentioned in the 8th article that "25 percent of the annual profit obtained from IDRO's shares in its affiliated units are to be allocated for technical, scientific, management formations and R&D inside the country or abroad .The balance will be reinvested after the deduction of taxes and legal reserves .
One of IDRO's goals since it's foundation has been to create changes in the country's industries by the way of industrial development and modernization . IDRO has always been managed with commercial logic as an multi discipline organization ( 2nd article) considering that technical and management formations are one of IDRO's major responsibilities . The industrial management organization which was in charge of manager's formation before IDRO's foundation proposed it's formation and became the organization's acting entity so the directors could obtain private capitals and separate management from ownership and support the industrial development of the country .
IDRO has been the source of useful services to the country's economy during the last three decades . We can categorically claim that some important parts basic structure and the relative industrial development of the country are the results of IDRO's activities .
At the end of the 20th century and considering the incredible development and technological advances in the developed world, IDRO has to revitalize its past responsibilities in national level. It also has to consider the time changes with the aim of developing new and advanced technologies in order to globalize Iran's industries and has to direct itself toward projects and ideas that can be profitable and also be helpful in obtaining new and advanced technologies .The cooperation with the private sector and foreign partners has already been approved in this regard . This decision will be useful to obtain financial resources beside preparing the grounds for advanced technology transfer and specialized formation which are one of principal criteria's to obtain advanced technologies and even to enter international markets .