Public Sector Iron and Steel Companies (Restructuring) and Miscellaneous Provisions Act,1978
Act No : 16
Section : SHORT TITLE AND COMMENCEMENT
PUBLIC SECTOR IRON AND STEEL COMPANIES (RESTRUCTURING) AND MISCELLANEOUS PROVISIONS ACT, 1978
16 of 1978
30th April, 1978
An Act to provide for restructuring of the iron and steel companies in the public sector so as to secure better management and grater efficiency in their working and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Twenty-ninth Year of the Republic of India as follows:-
STATEMENT OF OBJECTS AND REASONS There are at present six integrated steel plants in the country with a total installed capacity of 10.6 million tonnes of ingot steel. Of these, five steel plants with an aggregate capacity of 8.6 million tonnes are in the public sector. The plants at Bhilai, Durgapur and Rourkela are owned and managed by Hindustan Steel Limited and the plant at Bokaro by Bokaro Steel Limited, both the companies being wholly owned subsidiaries of Steel Authority of India Limited. The fifth plant at Burnpur is under the Indian Iron and Steel Company Limited whose majority shares were acquired by Government in July, 1976. Bhilai and Bokaro Steel plants are being expanded and this will raise the total steel production capacity in the public sector to 12.4 million tonnes. Steel Authority of India Limited also has a number of other subsidiaries concerned with activities allied to steel production such as provision of consultancy, design and engineering services for ferrous and non- ferrous enterprises heavy construction erection work connected with steel and other sectors, development and operation of major mechanised iron ore mines to meet the demands for export and from steel plants, etc.
2. It is essential for proper development of the steel industry that public sector steel plants achieves maximum production and are managed with the greatest efficiency for this purpose, it would be advisable to bring these plants under the overall control of an Integral Company which should function, to the maximum extent possible as an integrated steel complex and all activities which are not directly related to steel production are kept outside its purview. Having regard to the present nature of these activities and potentialities for the future, it would also be greatly advantageous if the units/ companies concerned therewith function directly under Government. Accordingly the present set-up is being reorganised broadly as under :-
(i) Hindustan Steel Limited, Bokaro Steel Limited. Salem Steel Limited, SAIL International Limited, Bhilai Isput Limited, Rourkela Ispat Limited and Durgapur Mistira Ispat Limited, wholly-owned subsidiaries of Steel Au- thority of India Limited (SAIL) will be merged in SAIL and will function as units of SAIL.
(ii) The shares presently held by Government in Indian Iron and Steel Company Limited will be transferred to SAIL and it will become a subsidiary of SAIL.
(iii) Metallurgical and Engineering Consultants (India) Limited Hindustan Steel
Works Construction Limited and National Mineral Development Corporation Limited wholly-owned subsidiaries of SAIL, will become independent companies under the direct administrative control of Department of Steel, Kiriburu and Meghahatuburu Iron Ores Mines of National Mineral Development Corporation Limited will be transferred to SAIL to serve as captive units of Bokaro Steel Plant.
(iv) Bharat Refractories Limited, a wholly-owned subsidiary of Bokarao Steel Ltd. will become an independent Company directly under the Department of Steel and other refractory units will also come under it.
3. Restructuring as aforesaid is undertaken to secure better management of, and greater efficiency in the working of public sector steel plants. The terms and conditions applicable to the employees would remain unaltered.
4.
The Bill seeks to achieve the above objects.-S.O.R.- Gaz. of Ind. 22-12-1977. Pt. II. S. 2, Ext., p. 969.
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called the Public Sector Iron and Steel Companies (Restructuring) and Miscellaneous Provisions Act, 1978.
(2) It shall come into force on such date2as the Central Government may, by notification in the Official Gazette, appoint.
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