REGISTERED NO. DL-33004/2002

The Gazette of India

EXTRAORDINARY

PART II —Section 2

PUBLISHED BY AUTHORITY

No. 33]

NEW DELHI, FRIDAY, JULY 19, 2002 / ASADHA 28,1924

Separate paging is given to this Part in order that it may be filed as a separate compilation.

LOK SABHA

The following Bills were introduced in Lok Sabha on 19.7.2002.

BILL No. 41 OF 2002

A Bill to promote use and development of indigenous iron and steel in industries keeping

in view the liberalisation of economic policy and changes introduced in trade

policies thereunder.

BF it enacted by Parliament in the Fifty-third Year of the Republic of India as

follows:—

1. (/) This Act may be called the Promotion of Indigenous Iron and Steel Industries

Act, 2002.

Short title,

extent,

application

and

commencement.

(2) It extends to the whole of India.

(3) It shall apply to all projects, industrial or business enterprises set up or to be set

up with the grant and aid of public money.

(4) It shall come into force on such date as the Central Government may, by notifica-

tion in the official Gazette. appoint

2. It is hereby declared that it is expedient in the public interest to help, promote and

consolidate the growth and development of indigenous iron and steel industries in the

context of the liberalised economic policy.

Declaration as

to expediency

of promotion

of indigenous

iron and steel

industries

THE GAZETTE OF INDIA EXTRAORDINARY

[PART IK-

3. (a) "industrial establishment" means any premises including the precincts thereof

where any systematic activity is carried on by owner, or through any agency, including a

contractor or sub-contractor, for manufacture, production, supply or distribution of goods

or services for sales or business or both with a motive to make any gain or profit and includes

ancillary industrial undertakings;

Definitions.

(b) "factory" means any premises, including the precincts thereof, in any part of which

a manufacturing process is carried on or is being ordinarily carried on with the aid of power

and where twenty or more workers are working there on any day of the preceding twelve

months;

material, articles, commodities and all other kind of moveable properties rclatablc to

"industry" or "industrial undertaking" including "ancillary industrial undertakings" within

the meaning of this Act;

3 of 1W0

(d) "indigenous iron and steel" means all iron and steel products including all kinds of

products therefrom, which are manufactured or produced in India, but excluding the product

rolled/manufactured out of conversion of any imported input material;

(e) "owner" in relation to an industrial undertaking, means the person, who, or the

authority which, has the ultimate control over the affairs of the undertaking, and, where the

said affairs are entrusted to a manager, managing director or managing agent, such manager,

managing director or managing agent, as the case may be, shall be deemed to be the owner

of the undertaking;

(/) "power" means electrical energy or any other form of energy which is mechanically

generated and transmitted and is not generated and transmitted by human or animal agency;

(g) "public fund" means and includes all financial facilities, assistance or grant pro-

vided by the Central or a State Government, its agencies or financial institution.

(h) "public works" means all such project works exceeding rupees one crore which are

being undertaken with the assistance of public fund or for public service.

4. (7) Notwithstanding anything contained contrary in any law for the time being in

force, it shall be mandatory to use iron and steel mined, produced or manufactured in the

country for every—

Compulsory

use of

indigenous

iron and steel

mail

industrial

establishments.

(a) Public wonts, tactory, industrial estaDiisnmeni including an ancillary muus-

trial establishment owned wholly or partly by the Central Government or a State

Government or run with the aid and assistance of public fund:

Provided that it shall not apply where use of such iron and steel manufactured in

India is detrimental to the public interest or to the project or not available in specified

qualities or within delivery schedule.

(b) Contract for construction, modification, modernisation, installation, altera-

tion, repairs of any public work or industrial establishment undertaken with the aid and

assistance of public fund:

Provided that it shall not apply where use of such iron and steel manufactured in

the country is impracticable for successful completion of the work and cost of procure-

ment exceeds rupees one crore.

contractor, sub-contractor, agent carrying on an industrial undertaking or executing

any job or work in any such industrial establishment.

5. (7) Every person undertaking execution of any contract or work or job requiring

procurement of iron and steel and other material input from outside the country shall furnish

a declaration to the head of the industrial establishment to that effect.

Declaration to

use imported

iron and steel.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(2) The head of industrial establishment shall forward the reasons for procurement or

importing iron and stce| from outside the country in the prescribed format to the Central

Government.

(3) The Central Government shall examine reasons and facts furnished by an industrial

establishment and recommend for procurement of iron and steel which is essential for comple-

tion and execution of the work.

6. (/) Any person including an owner, occupier, head of an industrial establishment,

contractor, sub-contractor or agent who contravenes the provisions of this Act shall be

punishable with fine which may extend upto five times of the price difference between the

iron and steel materials produced indigenously and the same procured or imported from

outside India and in case of continuing contraventions, with an additional fine which may

extend upto two times of the fine imposed as aforesaid for every fortnight during the con-

tinuance of the contravention.

Punishment

for

contravention

of the

provisions of

the Act.

(2) If the person contravening any of the provisions of the Act or the rules framed

thereunder is a company, every person, who at the time the offence was committed was in-

charge of and responsible to the company for the counduct of the business of the company

as well as the company, shall be deemed to be guilty of the contravention.

Explanation:— ror me purpose or mis section—

"company" means a body corporate duly incorporated under the Indian

Companies Act, 1956 and includes a partnership firm or other association of individuals.

1 of 1956.

7. Any person who is required under the provisions of this Act or rules made

thereunder to make any statement or furnish any information deliberately makes false state-

ment and furnishes false information, he shall be punishable with imprisonment which may

extend to three years or with fine which may extend upto rupees fifteen thousand or with

both.

Punishment

for false

information,

8, No court shall take cognizance of any offence punishable under this Act except on

a report in writing of the facts constituting such offence made by any interested persons.

Cognizance

of offence.

9. Where any person is charged with contravening any of the provisions of this Act or

rules framed thereunder the burden of proving innocence shall be on him.

Burden of

proof.

10. No court inferior to that of a Presidency Magistrate or a Judicial Magistrate of the

First Class shall try any offence punishable under this Act.

Jurisdiction

of courts.

11. If the Central Government is of the opinion, having regard to the small amount of

the public fund involved in the project or of the strategic importance, it may exempt subject

to such conditions as it may think fit to impose on any industrial undertaking or ancillary

industrial undertaking or factory or group of industrial undertakings, ancillary industrial

undertakings, or factories as it may specify in the notification from the operation of all or any

of the provisions of this Act or any rules or orders made thereunder.

Power to

exempt in

certain cases.

12. (/) No suit or prosecution or other legal proceeding shall lie against any person for

anything which is in good faith done or intended to be done under this Act or a rule or order

made thereunder.

Protection of

action taken

under this

Act.

(2) No suit or other legal proceeding shall lie against the Government for any damage

caused or likely to be caused by anything which is in good faith done or intended to be done

in pursuance of this Act or any rule or order or direction made thereunder.

13. The Central Government, may by notification in Official Gazette, make rules for

carrying out the purposes of this Act.

Power to

mate rules.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

STATEMENT OF OBJECTS AND REASONS

There is an urgent need to encQurage the use and development of indigenous iron and

steel in industries by giving constructive preference in procurement. In view of the major

changes introduced in the Indian economy through liberalization since July, 1991, the need

is felt for giving encouragement to articles, materials, supplies which have been mined,

produced or manufactured within the country for safeguarding and promoting the interest of

domestic industries.

In a developing country like India, the Government's role in infrastructure projects

like power, road, national highway, ports, communication, railway tracks and bridges, defence

activities, refineries, etc. continues to be predominant. The public procurement of raw materials

and inputs for the purpose of various ongoing and incoming projects plays a crucial role in

generating a high demand for various industrial products in a country, like India which is at

the threshold of take-offstage of all round economic development.

It is the primary concern of the State, be it highly developed or developing, to see that

the domestic industries set up with the help of massive investment, manpower and technology

continue to receive a positive support in the form of higher demand generation. In situations

where the inputs procured from the domestic sources satisfy all eligibility criteria like prices,

technical dimensions and delivery schedules and the onus of providing the finance either

from any public resources or from borrowed fund by State or public agency is crucial for

these projects of national importance, it can have a preferential treahn«nt for procurement

from domestic sources. Such measure is compatible to the agreements internationally

undertaken. The iron and steel projects (ferrous metal) including structurals plates, sheets,

coils and special products in that category are indigenously available and globally accepted.

However, exports of steel from India has been subjected to various duty restrictions imposed

by other countries. On the other hand, due to import liberalized scenario, substantial totrages

of steel products at very low prices some of whom are seconds and rejects are being imported

into the country. This has caused irreparable damage to the domestic industry who have

made massive investment to install state-of-the-art technology to cater to the changing

pattern of demand. It is expedient in the public interest to develop the indigenous industries

without affecting in any way the quality and other aspects of the overall development. As

such the Bill intends to encourage the growth and development of indigenous industry in

the country.

NEW DELHI;

SUNIL KHAN

April 5,2002.

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 13 of the Bill empowers the Central Government to make rules for carrying out

the purposes of the Bill. The rules will relate to the matters of detail only.

The delegation of legislative power, therefore, is of a normal character.

SEC. 2 ]

THE GAZETTE OF INDIA EXTRAORDINARY

aiLLNO.WOFZWZ

A Bill further to amend the Constitution of India.

BE it enacted by Parliament in the Fifty-third Year of the Republic of India as

follows:—

1. This Act may be called the Constitution (Amendment) Act, 2002.

Short title.

2. In article 275 of the Constitution, in clause (1), before the first proviso, the following

provisos shall be inserted, namely:—

Amendment

of article

275.

"Provided that there shall be paid out of the Consolidated Fund of India as

grants-in-aid of the revenues of a State such capital and recurring sums as may be

necessary to enable that State to meet the costs of such schemes or development

works undertaken by the State if the State is unable to carry out such schemes or

works due to severe financial crisis:

Provided further that a sum of rupees three thousand and two hundred crore

shall be allocated as grants-in-aid of revenues of the State of Tamil Nadu as one time

grant and rupees five hundred crore every year as recurring expenditure and such

amount shall be charged on and paid out of the Consolidated Fund of India."

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

STATEMENT OF OBJECTS AND REASONS

Several States arc reeling under severe financial crisis. As a result, they are not able to

undertake developmental schemes. In Tamil Nadu when the present Government took over

the reins, the coffers were empty.

Therefore, the present Government is in a precarious position. Central Government

should come forward and assist Tamil Nadu and other States where there is a severe financial

crisis.

The Bill accordingly seeks to amend the Constitution.

NEW DELHI;

\lApriI,2002.

S. MURUGESAN

FINANCIAL MEMORANDUM

Clause 2 of the Bill provides for grants-in-aid of the revenues of a State facing severe

financial crisis. The Bill, therefore, if enacted will involve expenditure from the Consolidated

Fund of India. It is estimated that an annual recurring expenditure of about rupees ten

thousand crore is likely to be involved from the Consolidated Fund of India.

A non-recurring expenditure of about rupees twenty thousand crore is also likely to be

involved.

SEC. 2 ]

THE GAZETTE OF INDIA EXTRAORDINARY

BILL NO. 34 OF 2002

A Bill to provide for the right to work and for allowance till such time as appropriate

work is provided to any citizen, for establishment of Right to Work Fund, for creation of

Right to Work Insurance and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Fifty-third Year of the Republic of India as

follows:—

1. (/) This Act may be called the Right to Work Act, 2002.

(2) It shall extend to the whole of India.

(5) It shall come into force at once.

Short title,

extent and

commence-

ment

2. In this Act, unless the context otherwise requires,—

Definitions

(a) "employment exchange means an employment exchange set up by the Gov-

ernment of a State or Union territory;

(b) "fund" means the "Right to Work Fund" established under sub-section (1) of

section 9;

(d) "notification" means a notification published in the official Gazette by the

Central Government; and

(e) "prescribed" means prescribed by rules made under this Act.

3. Subject to the provisions contained in sections 7 and 13, every citizen who has

attained the age of eighteen years and who, being unemployed, Is registered at an employ-

ment exchange shall have the right to appropriate work to be provided by the Government

Right lo

Work

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

4. The work to be provided by the Government under section 3 shall be suited to the

age, qualification and strength of the citizen concerned.

Nature

Work to be

provided

5. TiH such time as work is provided to a citizen under section 3, he or she shall be

entitled to an allowance, not being less than rupees two hundred per week, as may be

prescribed.

Grant of

Allowance.

6. If a citizen secures any work or job subsequent to his registration with the employ-

ment exchange, either on his own or otherwise, he shall inform the employment exchange

immediately and his name shall be removed by the employment exchange with effect from

the date of his having secured the job or work.

Removal

name by Em-

ployment Ex-

change.

7. The provisions of this Act shall not apply to any citizen,—

Act

not

apply to cer-

tain citizens.

(a) who has an income, through any source, not being less than the amount of

allowance fixed under section 5;

(b) who is covered under any scheme of unemployment allowance prevalent in

a State or Union territory.

8. Where a citizen, being unemployed, registers himself with an employment ex-

change under section 3, but has an income of his own through any source, the amount of

allowance to which he may be entitled under section 5 shall be reduced by the amount of

his such income.

Reduction of

allowance un-

der section 5.

9. (1) The Government shall establish a Fund to be called "Right to Work Fund"

for the ernnt of allowance under this Act

Establishment

of 'Right to

Work Fund¹.

(2) The Government shall, from time to time, make such grants to the Fund as may be

required for the purpose of this Act.

(3) These shall be credited to the Fund,—

(a) all grants made by the Government under sub-section (2);

(b) all voluntary donations made to the Fund;

(d) all sums collected under Section 12;

(e) any interest or dividend or other return on any investment made out of any

part of the Fund.

(4) All amounts due and payable under the Act and all expenditure relating to the

management and administration of the Fund shall be paid out of the Fund.

10. The Government shall endeavour to have a Right to Work Insurance Policy to

cover whole or any part of such grants of allowances as may be payable under this Act.

Right to Work

Insurance

Policy.

Rebate or

deductions

from Income-

11, Notwithstanding anything contained in the Income Tax Act, 1961, all voluntary

donations made to the Fund shall qualify for such rebate or deductions from the income-tax

payable by the donee, as may be prescribed.

43 of 1961

12. Every citizen who receives work or allowance under this Act shall contribute to the

fund for a prescribed period immediately after his securing any work or job, whether pro-

vided by the Government under this Act or on his own, at such a rate as may be prescribed.

Contribution

to Fund

13, The Government may, in its endeavour to provide work under this Act, categorise

citizens by notification on the basis of their qualification or any other basis as may be

prescribed and make citizens of such categories entitled to right to work under section 3.

Categorising

of citizens

entitled to

Right to

work.

Provided that the Government shall provide the right to work to all eligible citizens

within ten years from the commencement of this Act.

14. As soon as may be after the close of a financial year, the Government shall cause

a general annual report on the working and administration of the Fund and the implementa-

tion of this Act during that year to be prepared and laid before each House of Parliament, and

every such report shall be in such form and shall contain such matters as may be prescribed.

Annual report

by Govern-

ment.

SEC. 2 ]

THE GAZETTE OF INDIA EXTRAORDINARY

15. (/) The Government may, by notification, make rules for carrying out the provi-

sions of this Act.

Power

make rules

(2) In particular and without prejudice to the generality of the foregoing powers, such

rules may provide for all or any of the following matters, namely:—

(a) the rate of allowance referred to in section 5 and different rates may be

prescribed on the basis of qualification and skills;

(b) the necessary details relating to Right to Work Insurance referred to in

section 10;

(d)the rate of contribution to the Fund under section 12;

(e) the basis of categorisation of citizens under section 13;

(f) the form and content pf the general annual report mentioned in section 14;

(g) the procedure to regulate all payments under this Act; and

(h) any other matter which is required to be, or may be, prescribed.

16. Every rule made under this Act by the Government and every notification issued

under section 13, shall be laid, as soon as may be after it is made or issued, before each House

of Parliament, while it is in session for a total period of thirty days which may be comprised

in one session or in two or more successive sessions, and if, before the expiry of the session

immediately following the session or the successive sessions aforesaid, both Houses agree

in making any modification in the rule or notification or both Houses agree that the rule or

notification should not be made or issued, the rule or notification shall thereafter have effect

only in such modified form or be of no effect, as the case may be, so, however, that any such

modification or annulment shall be without prejudice to the validity of anything previously

done under that rule or notification.

Rules and

notifications

to be laid

before

Parl lament

THE OAZETTE OF INDIA EXTRAORDINARY

[PART 1^-

STATEMENT OF OBJECTS AND REASONS

Indian Constitution guarantees to every citizen the fundamental right to life. The

Supreme Court has observed that the right to life, in order to be meaningful, assumes the

availability of necessary means to a decent livelihood. On the other hand, the problem of

unemployment has assumed menacing proportions. Even the educated citizens are rendered

indigent. Lack of opportunity of employment in the country is also leading to brain drain and

exodus of a large number of skilled and unskilled persons abroad.

It is time that concerted efforts are made by the State to assure work to citizens. The Bill

grants every citizen the legal right to work. Till such time as work is provided to a citizen, he

or she shall be entitled to an allowance.

The Bill also provides for the establishment by the Government of a 'Right to Work

Fund'. The Fund will receive grants made by the Government, voluntary donations which

shall qualify for rebate or deductions from income-tax payable by the donee, contributions at

prescribed rate and for specified period from citizens who secure work after registration, etc.

There is also a provision to promote Right to Work Insurance to raise finances.

The Bill is realistic, in so far as it provides for even a gradual introduction of the right

to work. To begin with, the Government may categorise citizens on the basis of their qualifi-

cation or any other basis and make citizens of such categories entitled to the right to work;

so, however, that gradually all the citizens secure the right to work within a period often

years from the commencement of the Act.

Hence this Bill.

NEW DELHI;

G.M. BANATWALLA

February 27,2002

PRESIDENTS RECOMMENDATION UNDER ARTICLES 117 AND 274 OF

THE CONSTITUTION

[Copy of letter No. DGET-H-11019/2/2002-MP(G), dated 19 April, 2002 from

Shri Shared Yadav, Minister of Labour to the Secretary-General, Lok Sabha].

The President, having been informed of the subject matter of the Right to Work

Bill, 2002 by Shri G.M. Banatwalla, Member of Parliament, recommends the introduction

under articles 117(1) and 274(1) and consideration of the Bill under article 117(3) of the

Constitution in Lok Sabha.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

FINANCIAL MEMORANDUM

Clause 5 of the Bill seeks to provide allowance to a citizen who has attained the age of

eighteen years and who, being unemployed, is registered at an Employment Exchange. Till

such time as work is provided to such a citizen, he or she shall be entitled to an allowance not

being less than two hundred rupees per week, as may be prescribed. It is difficult to make an

exact estimate of the recurring expenditure that may be involved on this count Nevertheless,

the provisions of the Bill may be expected to involve recurring expenditure of about rupees

five hundred crore per annum from the Consolidated Fund of India. The recurring expendi-

ture is expected to reduce substantially as employment situation improves and as voluntary

donations, contributions from citizens who secure work and contributions from the Right to

Work Insurance are received.

No non-recurring expenditure is likely to be involved,

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 15 of the Bill empowers the Central Government to make rules for carrying out

the purposes of the Bill. These rules will relate to matters of detail only.

The delegation of legislative power is, therefore, of a normal character.

SEC. 2 ]

THE GAZETTE OF INDIA EXTRAORDINARY

4. After article 243M of the Constitution, the following article shall be inserted, namely:—

Insertion of

new wticle

' '243MM. The Legislature of a State where District Council is in existence shall,

by law, provide that accounts of the District Council shall be audited by the Accountant

General of the State and such audited report shall be examined by the Finance Committee

of the District Council which shall be presided by the Leader of the Opposition of the

District Council and if any omission or commission is found in the audited report

successively for two years, the Chairman of the District Council shall cease to be

Chairman of the Council and he shall not be eligible to contest elections to that body."

Audit of

accounts of

District

Council

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

BILL No. 49 OF 2002

A Bill further to amend the Constitution of India.

BE it enacted by Parliament in the Fifty-third Year of the Republic of India as

follows:^

1. This Act may be called the Constitution (Amendment) Act, 2002.

Short title

2. After article 21 of the Constitution, the following article shall be inserted, namely:—

Insertion of

new article

21A

"21 A. (/) Every Indian citizen who is a physically challenged person or an old

person shall have the right to social security in the matters such as—

Right to

social security

In respect of

physically

challenged

persons and

senior

citizens

(0 health care and medical facilities;

(if) housing facilities; and

(ill) adequate and nutritious meals,

(2) Parliament may by law determine the conditions of eligibility, mode of provid-

ing facilities to achieve the objectives contained in clause (7).".

THE GAZETTE OF INDIA EXTRAORDINARY

[PAiyr II—SBg. 2]

STATEMENT OF OBJECTS AND REASONS

Indian Constitution enshrines considerable rights accruing to an Indian citizen. The

purpose of this Bill is to invite the attention of all concerned and the State in particular to

provide a dignified and decent livelihood to those who are physically challenged or are

senior citizens and are unable to take care of themselves without help from others.

The Bill seeks to amend the Constitution with a view to including certain social security

measures for this deprived section of society as fundamental rights.

NEW DELHI;

PRIYA RANJAN DASMUNSI

May 3, 2002.

FINANCIAL MEMORANDUM

Clause 2 of the Bill, if enacted envisages expenses be incurred by the State on making

provisions for the housing, medical facilities, meals for the physically challenged persons

and senior citizens. At present, it cannot be estimated as to how many physically challenged

persons and senior citizens are there in the country. However, the Bill will involve expenditure

from the Consolidated Fund of India. It is estimated that a recurring expenditure of about

rupees sixty thousand per person per annum would be involved. No non-recurring expenditure

will be involved.

G.C.MALHOTRA,

Secretary-General.

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 2 0 0 2 .

MGIP(PLU)MRND—2295QI—29.08.2002.