Amendments to the insolvency code to provide for cross-border resolution framework and changes in law to facilitate regulatory framework for carbon trading are among the two dozen bills on Parliament’s agenda during its monsoon session starting Monday. The session will end on August 12.
The government will also seek Parliament’s nod for the Multi-State Cooperative Societies (Amendment) Bill, 2022, to rationalise its role in these entities and increase members’ participation in them.
However, the government hasn’t listed the bill to facilitate the privatisation of two public-sector banks (PSBs), belying mounting expectations.
It seeks to amend the Insolvency and Bankruptcy Code (IBC) to ensure lenders have easier access to overseas assets of stressed companies. It will enable India to seek cooperation from foreign countries to bring defaulters’ assets there under consideration for insolvency proceedings. The bill to amend the IBC will also seek changes to further bolster the IBC architecture to yield a quick resolution of toxic assets while preventing unscrupulous elements from gaming the system.
Analysts have been highlighting the need for a cross-border insolvency law during the bankruptcy proceedings against Amtek Auto, Videocon Industries, Essar Steel and even Jet Airways, citing the many obstructions these cases witnessed due to issues that traverse borders — in the form of the location of assets, complex procedures, etc.
The changes to the regulation of multi-state cooperative societies will also seek to increase public faith in these societies and create a conducive environment for their growth and development. It will also enable cooperative societies to compete in the new economic environment and to raise resources more effectively by promoting functional autonomy and professionalisation. The bill also has provisions to protect the interest of the depositors/members from the vested interest and mismanagement of these societies.
Through the Energy Conservation (Amendment) Bill, 2022, the Centre seeks to provide a regulatory framework for carbon trading and encourage penetration of renewables in the energy mix as well as effective implementation and enforcement of the ‘Energy Conservation Act’.
The Mines and Mineral (Development and Regulation) Amendment Bill, 2022, aims to bring policy reforms and improve the ease of doing business in the sector.