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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 47] NEW DELHI, THURSDAY, OCTOBER 14, 1982/ASVINA 22, 1904

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 the 14th October,

1982: —

BILL NO. 126 OF 1982

A Bill further to amend the Industrial Development Bank of India Act,

1964.

BE it enacted by Parliament in the Thirty-third Year of the Republic

of India as follows:—

Short title.

1. This Act may be called the Industrial Development Bank of India

(Amendment) Act, 1982.

18 of 1984

Amend- ment of section 2. In section 4 of the Industrial Development Bank of India Act, 1964, in the proviso, for the words "two hundred crores of rupees", the words ''five hundred crores of rupees" shall be substituted.

(1)

STATEMENT OF OBJECTS AND REASONS

Under section 4 of the Industrial Development Bank of India Act, 1964, the authorised capital of the Bank may be Increased by the Central Gov- ernment by notification up to two hundred crores of rupees. A notification has accordingly been issued by the Central Government on the 12th May, 1980, increasing the authorised capital to two hundred crores of rupees and the same now stands fully subscribed. Further subscription to the capital of the Development Bank is, therefore, not possible unless section 4 of the Act is suitably amended.

2. The operations of the Bank have Iseen growing at the rate of 32 per cent, per year since 1976-77 and are expected to grow by over 20 per cent, in the next five years. At present, the debt-equity ratio of the Develop- ment Bank is in the range of 12:1. In a situation where the Development Bank has to take recourse to further borrowings to augment its resources, the imbalance in its debt-equity ratio can be a serious constraint. In view of the normal financial principles combined with the repidly expanding operations of the Development Bank, it has become necessary to take steps to set right the imblance in the debt-equity ratio by enhancing its share capital. It is, therefore, proposed to amend the Act to enable the Central Government by notification to increase the authorised capital of the Bank from the present limit of two hundred crores of rupees to five hundred crores of rupees.

3. The Bill seeks to achieve the above object.

NEW DELHI; PRANAB MUKHERJEE, The 24th Septmber, 1982.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF

THE CONSTITUTION OF INDIA

[Copy of letter No. 10(41)/IF-I/82, dated the 5th October, 1982 from Shri Pranab Kumar Mukherjee, Minister of Finance to the Secretary, Lok Sabha.]

The President having been informed of the subject matter of all the pro- posed Bill, recommends under clause (1) and (3) of article 117 of the Constitution, the introduction of the Industrial Development Bank of India (Amendment) Bill, 1982, in Lok Sabha and also recommends to Lok Sabha the consideration of the Bill.

The above said recommendation was made by the President on the 29th September, 1982,

FINANCIAL MEMORANDUM

Clause 2 of the Bill seeks to empower the Central Government to increase the limit of the authorised capital of-the Industrial Development Bank of India from two hundred crores of rupees to five hundred crores of rupees by notification from time to time. At present, the authorised capital of the Industrial Development Bank of India is rupees two hundred crores. The authorised capital has been fully subscribed. The proposed amendment would enable the Central Government to fix the authorised capital of the Industrial Development Bank of India by notification from time to time taking into account the minimum requirements, within the prescribed 'limit of five hundred crores of rupees. The Central Goverrir ment alone is empowered to subscribe to the share capital of the Industrial Development Bank of India. The Central Government will, therefore, be required to subscribe to the capital of the Industrial Development Bank of India to the extent of the enhanced amount of authorised capital as may be fixed by notification from time to time. After the present limit of the authorised capital of two hundred crores of rupees is enhanced to rupees five hundred crores by the proposed amendment, an additional amount of rupees three hundred crores would be subscribed by the Central Government during the following years. According to the present indica- tions, the additional amount of rupees three hundred crores can be ex- pected to be subscribed during the course of the next five years at an average rate of rupees sixty crores annually. This would be a non- recurring expenditure from the Consolidated Fund of India. The outgo of funds would be some extent offset by the profit transferred annually by the IDBI to the Government of India. In 1981-82, the Industrial Development Bank of India transferred an amount of Rs. 7.31 crores to the Government of India.

2. The Bill would not involve any other recurring or non-recurring

expenditure.

BILL N O. 124 OF 1982

A Bill to amend the Sugar Cess Act, 1982.

BE it enacted by Parliament in the Thirty-third Year of the Republic

of India as follows: —

1. (1) This Act may be called the Sugar Cess (Amendment) Act, 1982.

(2) It shall come into force on such date as the Central Government

may, by notification in the Official Gazette, appoint.

Shout title and com- mence- ment.

2. In section 3 of the Sugar Cess Act, 1982, in sub-section (1),—

3 of 1982.

(a) for the words "ten rupees", the words "fifteen rupees" shall

be substituted;

Amend- ment of section 3.

(b) in the proviso 'or the words "five rupees", the word?

"fourteen rupees" shall be substituted.

STATEMENT OF OBJECTS AND REASONS

It has been decided by the Government to build and maintain buffer stocks of sugar with a view to stabilizing sugar price and the ups and downs in the sugar industry. The salient features of the scheme are as follows:

(a) Initially the size of the buffer stocks would be five lakh

tonnes to be built out of the non-levy sugar.

(5) The buffer stocks quantity would be kept as sequestered stocks with the sugar mills and the share of each mill pro-rated to its production.

(c) For the quantity of buffer stocks, hundred per cent, bank credit would be provided. In addition, the mills would be compen- sated for holding the buffer stocks by providing to them som" holding costs and interest charges.

(d) Funds would be raised to pay the compensation to the

sugar mills by providing for the levy of additional cess on sugar.

Instead of having separate legislation and machinery for the levy of such additional cess and the administration of the funds raised thereby, it is proposed to avail of the provisions of the Sugar Cess Act, 1982 and the Sugar Development Fund Act, 1982 for the purpose by making suitable amendments therein.

2. Under the Sugar Cess Act, 1982, cess may be levied on sugar by notification at a rate not exceeding ten rupees per quintal and pending the issue of such a notification, such cess is leviable at the rate of five rupees per quintal. For the purpose of securing the additional funds needed in connection with the maintenance of the buffer stocks of sugar, it is proposed to increase the maximum rate at which cess may be levied under that Act by notification from rupees ten per quintal to rupees fifteen per quintal. It is also proposed to increase the rate at which cess may be levied pending the issue of a notification in that behalf from rupees five per quintal to rupees fourteen per quintal The additional cess which will be levied as a result of these amendments will have a marginal effect on the consumer who will be more than compensated by the protection he, will get, as a result of the maintenance of buffer stocks of sugar, from repeated price fluctuations.

3. The Bill seeks to achieve the above object. Provision already exists in the Sugar Development Fund Act, 1982 for crediting of the proceeds of the cess as reduced by the cost of collection to the Sugar Development Fund. That Fund will be applied, in addition to the existing purposes of rehabilitation and modernisation of sugar factories, etc., for defraying some holding costs and interest charges to the sugar mills in connection with the building up and maintenance of buffer stocks of sugar.

NEW DELHI; RAO BIRENDRA SINGH. The 2nd October, 1982.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OP THE CONSTITUTION OF INDIA

[Copy of letter No. 14-5/82^SD.I (A) dated the 2nd October, 10&2 from Rao Birendra Singh, Minister of Agriculture and Rural Develop- ment to the Secretary, Lok Sabha.]

The President, having been informed of the subject matter of the Sugar Cess (Amendment) Bill, 1982, recommends the introduction and consideration of the Bill in Lok Sabka under article 117(1) and (3) of the Constitution.

FINANCIAL MEMORANDUM

The Bill seeks.to amend the Sugar Cess Act, 1982 to increase the maximum rate at which cess may be levied on sugar by notification under the Act from rupees ten per quintal to rupees fifteen per quintal and also to increase the rate at which cess may, pending the issue of such notification, be levied from rupees five per quintal to rupees fourteen per quintal. It is estimated that the additional cess which may be coir lected at the said rate of rupees fourteen per quintal is likely to be of the order of about 51 crore rupees. As the cost of collection is being calculated as a percentage of the cess collected, and as this percentage is not likely to exceed one per cent, the additional expenditure by way of cost of collection may be of the order of rupees &1 lakhs per year.

2. The Bill does not Involve any other expenditure, whether of a recurring or non-recurring nature,

BILL NO. 125 OF 1982

A Bill to amend the Sugar Development Fund Act, 1982.

BE it enacted by Parliament in the Thirty-third Year of the Republic

of India as follows:—

1. (1) This Act may be called the Sugar Development Fund (Amend-

ment) Act, 1982.

(2) It shall come into force on such date as the Central Government Short title and com- mence- ment.

may, by notification in the Official Gazette, appoint.

4 of 1982.

Amend- ment of section 4.

2. In section 4 of the Sugar Development Fund Act, 1982, In sub- section (1), after clause (b), the following clause shall be inserted, namely: —

"(bb) for defraying expenditure for the purpose of building up and maintenance of buffer stocks of sugar with a view to stabilising price of sugar;".

STATEMENT OF OBJECTS AND REASONS

This Bill is a sequel to the Sugar Cess (Amendment) Bill, l&fjg. For the purpose of generating the necessary funds for maintaining buffer stocks of sugar, the Sugar Cess (Amendment) Bill, 1982, seeks to amend the Sugar Cess Act, 1982, for Increasing the rate at which cess may be levied under that Act on sugar. This Bill seeks to amend the Sugar Development Fund Act, 1982, to provide that the Sugar Development Fund under the Act, to which the proceeds of the duty of excise levied and collected under the Sugar Cess Act, 1982 as reduced by the cost of collection, are required to be credited after due appropriation made by Parliament by law, may be utilised also for the purpose of defraying some holding costs and interest charges to sugar mills for building up and maintenance of buffer stocks of sugar.

2. The BUI seeks to achieve the above object.

NEW DEUH;

The 2nd October, 1982. RAO BIRENDRA SINGH.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA

[Copy of letter No. 14-5/82-SD.I (B), dated the 2nd October, 1982 from Rao Birendra Singh, Minister of Agriculture and Rural Develop- ment to the Secretary, Lok Sabha.].

The President, having been Informed of the subject matter of the Sugar Development Fund (Amendment) Bill, 1982, recommends the consideration of the Bill in Lok Sabha under article 117(3) of the Constitution.

FINANCIAL MEMORANDUM

Sub^pSon (1) of section 4 of the Sugar Development Fund Act, 1982 specifies the purposes for which Sugar Development Fund may be applied^ Clause 2 of the Bill seeks to amend this sub-section to provide for the application of the Fund for the purpose of implementing the scheme of buffer stocks of sugar. The- expenditure for implement- ing the scheme (excluding the expenditure on additional staff, equip- ment, etc.) is likely to be of the order pf rupees 49 qrores per year. The expenditure on additional staff, office equipment, etc., will be both of a non-recurring and also of a recurring nature, and the non-recur- ring expenditure is likely to be 50 thousand rupees whilst the recurring expenditure is likely to be about rupees 3.5 lakhs per year.

2. The Bill doea not involve any other expenditure, whether of a recurring or non-recurring nature,

AVTAR SINGH RIKHY,

Secretory.

FHINTED BY THE OENHKAL MANAGED, GOVERNMENT OP INDIA PRESS, MINTO ROAD,

NEW DK.HI AND PUBLISHED BY THE CONTROLLER OP PUBLICATIONS, DELHI, 1 9 82