Within days of PM Narendra Modi's 10-pt order, MCA unveils action plan

PTI Posted online: Wednesday, Jun 18, 2014 at 0000 hrs
New Delhi : The Ministry of Corporate Affairs has prepared a detailed action plan, that includes proposal to repeal a redundant law, for implementing Prime Minister Narendra Modi's suggestions to improve overall governance.

The action plan, prepared after Modi's meeting with Secretaries of various Ministries and Departments on June 4, has been sent to Cabinet Secretary Ajit Seth.

According to the plan, the Ministry of Corporate Affairs (MCA) "proposes to initiate the process to review and repeal the Companies (Donations of National Funds) Act, 1951 in consultation with the Ministry of Law and Justice".

This Act was made to enable companies to make donations to national funds.

Besides the Ministry would focus on ensuring collaborative decision making process.

"Special attention will be paid to have a structured consultative mechanism in the matter of issues deal with by this Ministry which concern other organisations and sector," the plan said.

However, the Ministry has said that since it performs regulatory functions within the statutory framework of Companies Act, there is relatively less need to consult other departments in performing day to day functions.

In a communication to Corporate Affairs Secretary Naved Masood on June 5, Cabinet Secretary Ajit Seth had asked the Ministry to prepare an action plan to implement the suggestions made by the Prime Minister.

"The Prime Minister had stressed upon ensuring an improved work culture and work environment, including hygiene and cleanliness of the work space...," Seth had said.

During his interaction with Secretaries, Modi had emphasised on various measures such as repealing redundant rules, focusinig on collaborative decision making, reducing decision-making layers and ensuring positive work environment.

"Every department should identify and repeal at least 10 rules or processes and even archaic Acts that are redundant and would not lead to any loss of efficiency," as per the list of suggestions mentioned in Seth's communication.

As per the Ministry, the new Companies Act "has been acknowledged to be a very progressive legislation" which replaces the voluminous and rather archaic Companies Act, 1956.

With regard to decision making layers, the Ministry has said that delegation of powers to officers of the under secretary and director levels already exists.

"Even at present disposal of cases does not involve more than four tiers even in cases where a matter requires approval of the Minister," the plan said.