INDIA BUSINESS WORLD - APRIL - MAY 2007
The Month that was ...

PVT DETECTIVE LAW AND ITDC'S JV PLAN OKAYED BY CABINET

The government has approved enactment of a new law to regulate private detectives and cleared ITDC's plan to set up a joint venture with Spanish Aldeasa company for dutyfree business. The government also okayed establishment of an Indian Institute of Space Science and Technology (IIST) and enhancement powers of certain public sector companies. The Cabinet also approved enactment of a new law on collection of statistics, information and broadcasting minister P R Dasmunsi said after the Cabinet meeting.

Briefing media persons here, the minister said the two new bills would be introduced in Parliament during the current session. While the Private Detective Agencies (Regulation) Bill of 2007 seeks to regulate the business of private detectives, the Collection of Statistics Bill of 2007 seeks to enable better management of data. The Cabinet has also approved repeal of the Collection of Statistics Act, 1953. The new law is also expected to improve data collection so that planning and policy formulation could be improved.

He said the Cabinet approved a proposal to pursue the Warehousing (Development and Regulation) Bill of 2005 which was pending in the Lok Sabha and to move certain amendments to the Bill based on the recommendations of the department-related Parliamentary Standing Committee.

The minister said an Indian Institute of Space Science and Technology (IIST) would be set up within two years in Thiruvananthapuram with an initial investment of Rs 270 crore. The institute, for which Rs 40 crore of annual recurring cost has been cleared, is to tackle the shortage of scientists and engineers required by ISRO.

The Private Detective Agencies (Regulation) Bill 2007 will regulate private detective agencies through a system of mandatory licensing. The minister described the legislation as a 'long pending' law. This legislation will ensure that they work within the ambit of legal framework and are accountable to a regulatory authority.

Based on the recommendations of the ad-hoc group of experts, the Cabinet approved the proposal to empower public sector holding companies to transfer assets, float fresh equity and divest their holdings. This freedom will be subject to the condition that the delegation would be in respect of subsidiaries set up by the holding company under the powers delegated to the navratna and mini-ratna CPSEs. Also, the public sector character of the concerned CPSE should not be changed without prior approval of the government.

Budgetary support to implement government-sponsored projects of national interest and government-sponsored R&D projects should not disqualify CPSEs from retaining navratna / miniratna status. However, for such projects, investment decision will be taken by the government and not by the CPSE concerned. CPSE chief executives will now be a member of the Search Committee for selecting independent directors for the concerned CPSE board of directors.