• All States and UT Directorates of Economics and Statistics should compile Comparable State-Level IIPs using uniform methodology and criteria. The term "Comparability" was defined to mean that all IIPs are based on (a) same base year, (b) use the same procedure for selection of the item basket and for preparation of weighting diagram, and (c) should have the same periodicity for release of indices.
• The base year for compilation of Comparable State IIPs may be chosen as 1993-94. Initially, the States may compile indices using the recommended methodology on a quarterly or annual basis depending on whether they are currently preparing annual indices or not compiling an index at all. However, those, which are already compiling monthly indices, may only switch over to the new base year using the methodology approved by the TAC.
• The Committee was not in favour of a Central Agency for collecting production data on behalf of the States. The States and UTs, which are already compiling IIPs and have got necessary infrastructure for collection of requisite production data may themselves collect regular data for compilation of Comparable State-level IIPs. Those, which do not have necessary infrastructure and are at present not compiling IIPs may create a suitable mechanism for collection of data by preparing plan schemes for inclusion in the respective State plans.
• The State IIP should include the three sectors of mining, manufacturing and electricity.
• The item basket for the State IIPs may be selected in such a manner that about 80 per cent of the value of output of the respective State manufacturing sector is captured by the selected items. The criteria will however be applied with flexibility keeping in view the representative-ness of the items selected and the manageability of fieldwork for collection of production data in respect of items in the item basket.
• The weighting diagram for comparable State IIPs should take into account the total production of both the registered as well as the un-registered sectors. On account of negative gross value added (GVA) in the electricity sector and in some 2-digit industry groups of the manufacturing sector in some of the States and UTs, the gross value of output (GVO) may be used for allocation of weights uniformly from sectoral to item level.
• In view of the practical problems involved in the compilation of a composite all-India IIP based on aggregation of State-level item-baskets or indices and the fact that the comparative industrial performance of Industrial growth at the all-India level would any way be reflected by the proposed all-India IIP, the TAC held the view that compilation of a composite all-India IIP was neither feasible nor desirable.
• CSO would make available the relevant ASI data and also provide technical guidance to the States and UTs.

The above-mentioned recommendations of the TAC have been followed by the States while compiling the comparable State IIPs.