The government will sell its 10 per cent stake in blue-chip Indian Oil Corporation (IOC) and 5 per cent in power producer NTPC to mop up about Rs 13,600 crore in this fiscal’s first disinvestment approval.
The approvals are part of Rs 41,000 crore disinvestment target for the current financial year.
Buoyed by diesel price deregulation, the government is looking at selling stake in Indian’s largest fuel retailer IOC for the second time in 13 months. Sale of 24.27 crore shares, or 10 per cent stake, in IOC would mop up close to Rs 8,000 crore at current market price.
A total of 41.22 crore shares, or 5 per cent, in NTPC could fetch Rs 5,600 crore to the exchequer at current rates. The government had last sold stake in NTPC in February 2013.
A decision to stake sale in IOC and NTPC was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, sources said.
Stake sale of IOC and NTPC together would fetch Rs 13,600 crore.
Although it’s not clear which PSU would hit the markets next, sources said the Disinvestment Department is “watching things closely and as and when it feels proper, the share sales would happen”.
The government has set the ball rolling for PSU stake sale in the current fiscal. It sold 5 per cent in REC and raised Rs 1,550 crore last month.
The government currently holds 68.57 per cent in IOC and 74.96 per cent in NTPC.
Shares of IOC were quoting at Rs 331.45, down 0.41 per cent, while NTPC was trading at Rs 136.85, down 3.29 per cent from its previous close on BSE.
For the current fiscal, the government has identified more than a dozen PSUs for stake sale, including National Fertilizers, MMTC, Hindustan Copper and ITDC.
It has approval of the Cabinet for sale of 5 per cent stake each in ONGC and Bharat Heavy Electricals (BHEL), and 10 per cent each in NALCO and NMDC.
Cabinet approves changes in child Labour law
Government today gave its nod to a proposal allowing children below 14 years of age to work only in family enterprises or entertainment industry with certain conditions while completely banning their employment elsewhere.
The original child labour law banned employment of children below 14 in only 18 hazardous industries.
The amendments also make it clear that children between 14 and 18 years will also not be allowed to work in hazardous industries.
The changes in the labour law also provide for stricter punishment for employers for violation. While there is no penalty provision for parents for the first offence, the employer would be liable for punishment even for the first violation.
In case of parents, the repeat offenders may be penalised with a monetary fine up to Rs 10,000.
In case of first offence, the penalty for employers has been increased up to two and half times from the existing up to Rs 20 thousand to up to Rs 50,000 now.
In case of a second or subsequent offence of employing any child or adolescent in contravention of the law, the minimum imprisonment would be one year which may extend to three years.
Earlier, the penalty for second or subsequent offence of employing any child in contravention of the law was imprisonment for a minimum term of six months which may extend to two years.
After the Cabinet nod, Government will move official amendments to the Child Labour (Prohibition and Regulation) Amendment Bill, 2012 in Parliament.
While child rights activists were opposed to the dilution saying it will promote child labour, those involved in business maintained that children need to be trained in traditional arts at an early stage or they will not be able to acquire the required skills like weaving and stitching.
The age of prohibition of employment has been linked to age under Right of Children to Free and Compulsory Education Act, 2009.
Exceptions have, however, been made in case of works in which the child helps the family or family enterprises.
The condition is that such enterprises should not involved any hazardous occupation. Another condition set forth is that they should work after school hours or during vacations.
Moreover, exemption has also been given where the child works as an artist in an audio-visual entertainment industry, including advertisement, films, television serials or any such other entertainment or sports activities except the circus.
This exemption is also conditional and stipulates taking up prescribed safety measures.
An official statement said that while considering a total prohibition on employment of child, it would be prudent to also keep in mind the country’s social fabric and socio-economic conditions.
Justifying the amendments, it said, “In a large number of families, children help their parents in their occupations like agriculture, artisanship etc and while helping the parents, children also learn the basics of occupations.
“Therefore, striking a balance between the need for education for a child and the reality of the socio-economic condition and social fabric in the country, the Cabinet has approved that a child can help his family or family enterprise, which is other than any hazardous occupation or process, after his school hours or during vacation.”
Besides a new definition of adolescent has been introduced in the Child Labour (Prohibition and Regulation) Act and employment of adolescents (14 to 18 years of age) has been prohibited in hazardous occupations and processes.
“These provisions would go a long way in protecting adolescents from the employment not suitable to their age,” it said.
The statement said that in case of first offence of employing any child or adolescent in contravention of the law, penalty would be imprisonment for a term not less than six months but which may extend to two years.
Besides they could be fined an amount not less than Rs 20,000 which may extend to Rs 50,000. They could also be penalised with both imprisonment and monetary fine.
Earlier, penalty for employing any child in contravention of the law was imprisonment for a term not less than three months, which could extend to one year.
The monetary penalty for the same was a fine not less than Rs 10000, which could extend to Rs 20,000 either alone or with the imprisonment.
In case of a second or subsequent offence of employing any child or adolescent in contravention of the law, the minimum imprisonment would be one year which may extend to three years now.
Earlier, penalty for second or subsequent offence of employing any child in contravention of the law was imprisonment for a minimum term of six months which may extend to two years.
Besides, the offence of employing any child or adolescent in contravention of the law by an employer has been made cognisable which allows police to arrest without a warrant.
Government believes that this provision would act as a deterrent against the offence of employing a child or adolescent in contravention of the law.
In the principal Act, the same punishment was provided for parents or guardians for permitting a child to work in contravention of the Act, as prescribed for the employer of the child.
However, taking a “realistic view” of the socio-economic conditions of the parents, there would be no punishment in case of a first offence by them and in case of a second and subsequent offence, the penalty would be a fine which may extend to Rs 10,000, the statement said.
The proposal also provides for the setting up of a Child and Adolescent Labour Rehabilitation Fund for one or more districts for rehabilitation of children or adolescents rescued.
Thus, the Act itself will provide for a fund to carry out rehabilitation activities.
The Child Labour (Prohibition and Regulation) Act (CLPR Act) 1986 prohibits employment of a child in 18 occupations and 65 processes and regulates the conditions of working of children in other occupations/ processes.
As per this Act, a child means any person who has not completed 14 years of age. The Act provides punishment for the offence of employing or permitting employment of any child in contravention of the provisions of this Act.
The Right of Children to Free and Compulsory Education Act, 2009 enjoins the state to ensure free and compulsory education to all children in the age group of 6 to 14 years.
A corollary to this would be that if a child is in the work place, he would miss school.
It was felt that thus, the CLPR Act is not aligned to the RTE Act as it permits employment of child below 14 years in occupations and processes not prohibited.
It was also felt that the CLPR Act is not in conformity with the International Labour Organisation (ILO) Conventions 138 and 182, which provide for minimum age of entry into employment and prohibition of employment of persons below 18 years, in work which is likely to harm health, safety and morals.
The amendments being brought in the Act takes care of these anomalies, the government said.
Cabinet okays benami transactions bill to curb black money
To check the generation of black money in the country, the Cabinet today approved the new Benami Transaction (Prohibition) Bill which provides for stringent measures against violators.
“The Benami Transactions (Prohibition) (Amendment) Bill, 2015 provides for attachment and confiscation of benami properties and also fine with imprisonment. This is one more initiative to fight the menace of black money inside the country,” an official statement said.
“As a sequel to the announcement in the Budget, the Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to amend the Benami Transactions (Prohibition) Act, 1988 by moving of the Benami Transactions (Prohibition) (Amendment) Bill, 2015 in Parliament,” it added.
Apart from confiscation, the Bill provides for prosecution and aims to act as a major avenue for blocking generation and holding of black money in the form of benami property, especially in real estate.
The statement said the Department of Revenue in consultation with the Legislative Department has amended the Benami Transactions (Prohibition) Act, 1988.
The government had in Budget 2015-16, presented at the end of February, announced that it would come out with a new and more comprehensive Benami Transactions (Prohibition) Bill.
The Benami Transactions (Prohibition) Act was earlier enacted in 1988, but the rules under that Act could not be formulated due to inherent infirmities in it.
Following this, in 2011 the government introduced in Parliament a Benami Transactions (Prohibition) Bill, which proposed replacing the 1988 Act.
The Bill was referred to the Standing Committee on Finance for examination, which submitted its report in June 2012.
However, the Bill lapsed with the dissolution of 15th Lok Sabha.
RS approves changes in Companies Act to improve biz climate
Rajya Sabha today approved a bill to amend the Companies Act with an aim of promoting ease of doing business with as Finance Minister Arun Jaitley saying the law will be reviewed further by an expert committee to be set up shortly to see where the “shoe pinches”.
As many as 16 amendments were made to the Companies Act of 2013 which mainly deal with winding up of companies, board resolutions, bail provisions and utilisation of unclaimed dividends to bring the law in tune with the global standards.
Replying to a brief discussion on the Companies (Amendment) Bill 2014 which was passed by voice vote, Jaitley said the amendments were necessitated as there have been complaints from the corporates about the problems ever since the law was enacted in 2013.
Observing that the existing law had some stringent and difficult provisions, he said the amendments were aimed at simplifying bail provisions.
Now, “except in various issues of serious frauds, normal CrPC provisions” would apply, Jaitley said.
Contending that 16 amendments were not enough to cover everything, the Minister said that “a broad-based committee will continue to go into this question for the next few months as to where the shoe pinches …and this may not be the last amendments which we are bringing in.”
The expert committee comprising representatives of bodies of company secretaries, chartered accountants, industry chambers and officials will look into the discrepancies and suggest changes, he said.
Talking about the problems faced by the corporates, he said the onerous provisions were dissuading entrepreneurs to incorporate companies and prompting them to set up Limited Liability Partnership (LLP) firms for carrying out business.
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