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Page 1 of 47 CHAPTER-IX 10/3/2008 CHAPTER-IX Page 1 of 47 CHAPTER-IX COMMITTEE ON INDUSTRY I. Composition of the Committee 9.1 The Department-related Parliamentary Standing Committee on Industry for the year 2005 was constituted on 5th August, 2005 under Rule 287 of the Rules of Procedure and Conduct of Business in the Council of States. The composition of the Committee was as under:— 1. Shri Santosh Bagrodia — Chairman RAJYA SABHA 2. Shri K.B. Krishna Murthy 3. Prof. M.M. Agarwal 4. Shri Surendra Lath 5. Shri Suresh Bhardwaj 6. Dr. K. Malaisamy 7. Shri Pyarimohan Mohapatra 8. Dr. Vijay Mallya 9. Shrimati Sumitra Mahajan 10. Vacant LOK SABHA 11. Shri Guharam Ajgalle 12. Shri Kailash Baitha 13. Shri Rajnarayan 14. Shri Swadesh Chakraborty 15. Shri Bapu Hari Chaure 16. Shri Subhash Sureshchandra Deshmukh 17. Shri Ram Singh Kaswan 18. Dr. Vallabhbhai Kathiria 19. Smt. Susmita Bauri 20. Shri Sunil Kumar Mahato 21. Shri Prakash Paranjpe 22. Shri Kishanbhai Vestabhai Patel 23. Shri Badiga Ramakrishna 24. Shri Gurjeet Singh Rana 25. Shri Sarvey Sathyanarayana 26. Smt. Rubab Sayeda 27. Kunwar Manvendra Singh 28. Shri Ganesh Singh 29. Shri Suraj Singh 30. Shri Giridhari Yadav 31. Shri Chandramani Tripathi 9.2 On 5th August, 2006 the new Committee has been constituted. The Committee consists of the following Members:- 1. Shri Santosh Bagrodia — Chairman RAJYA SABHA 2. Shri G. Sanjeeva Reddy 3. Dr. (Smt.) Prabha Thakur 4. Shri Kalraj Mishra 5. Shrimati Hema Malini http://10.21.217.2/committeessum/2006/chapter_9_10.htm 10/3/2008 CHAPTER-IX Page 2 of 47 6. Dr. K. Malaisamy 7. Shri Pyarimohan Mohapatra 8. Dr.Vijay Mallya 9. Shri O.T. Lepcha 10. Shri Rahul Bajaj LOK SABHA 11. Shri Guharam Ajgalley 12. Shri S.K. Bwiswmuthiary 13. Shri Ajoy Chakraborty 14. Shri Swadesh Chakraborty 15. Shri Subhash Sureshchandra Deshmukh 16. Shri Ram Singh Kaswan 17. Dr. Vallabhbhai Kathiria 18. Dr. Prasanna Kumar Patasani 19. Shri Krishnabhai V. Patel 20. Shri P. Rajendran 21. Shri Badiga Ramakrishna 22. Shri Gurjeet Singh Rana 23. Shri Sarvey Sathyanarayana 24. Shri Rajnarayan Budholiya 25. Shri K.C. Pallani Shamy 26. Shri Ganesh Singh 27. Kunwar Manvendra Singh 28. Shri V.K. Thummar 29. Shri Giridhari Yadav 30. Shri Umakant Yadav 31. Shri Mohan S. Delkar II. Constitution of Sub-Committee of the Committee on Industry Sl. Sub-Committee Subject Name of the Chairman/ No. Convener 1. Sub-Committee-I For Ministry of Agro Dr. Vallabhbhai Kathiria and Rural Industries 2. Sub-Committee-II For Ministry of SSI Shri Swadesh Chakraborty 3. Sub-Committee-III For Ministry of Heavy Dr.Vijay Mallya Industries and Public Enterprises III. Subjects selected for examination 9.3 The Department-related Parliamentary Standing Committee on Industry selected the following subjects for examination: — Sl. No. Ministry/ Department Subject 1 Ministry of Agro and Rural PMRY, REGP and KVI Schemes. Industries 2 Ministry of SSI Credit flow; Cluster Development; problem and prospects of SSI sector; and availability of land to SSI units in upcoming of SEZ scheme. 3 Ministry of Heavy Industries Dalmia Dadri Cement Ltd. (Acquisition and Transfer of and Public Enterprises Undertakings) Amendment Bill, 2006; Revival of HMT Ltd.; Professionalisation of Boards of Directors in different Sectors of CPSU and performance review of PSEs. http://10.21.217.2/committeessum/2006/chapter_9_10.htm 10/3/2008 CHAPTER-IX Page 3 of 47 IV. (A) Sittings of the Committee: Till December 2006 the Committee held 28 sittings lasting for about 60 hours. The details of the meeting are given in Annexure IX. (B) Sittings of the Sub-Committee: Till December 2006, 2 sittings of the Sub-Committee were held lasting for 03 hours 35 minutes. The details of the meeting are given in Annexure X. V. Study visits: The Main Committee and Sub-Committees undertook study visits of various parts to have an in depth study of their respective subjects which are as under: Sl. No. Committee/ Sub- Dates Places of visits Agenda Committee 1 Main Committee 8th July to 15th July, Kolkata, Chennai, Availability of Bank 2006 Kochi, Bangalore and Credit, Transport, Mumbai Steel, Coal to SSI units in the States; revival under BRPSE; review of the status of HPF; and review the Unlocking the Assets to Ancillaries of HMT. VI. Reports Presented: During 2006 the Committee presented the following 16 Reports to both the Houses:— Sl.No. Report No. Date of presentation/ laying in Subject Rajya Sabha Lok Sabha 1. 178th 22.05.2006 Report on Unlocking of surplus assets of CPSEs to generate resources for revival and the status of ancillary Units of CPSEs: A case study of HMT Ltd. 2. th 22.05.2006 179 Report on Action Taken by the Government on the recommendations contained in Committee's One Hundred Sixty-eighth Report on Demands for Grants (2005-06) of the Department of Public Enterprises (Ministry of Heavy Industries and Public Enterprises). 3. 180th 22.05.2006 Report on Action Taken by the Government on the recommendations contained in One Hundred Sixty-ninth Report on Demands for Grants (2005-06) of the Department of Heavy Industries (Ministry of Heavy Industries and Public Enterprises). 4. st 22.05.2006 181 Report on Action Taken by the Government on the recommendations contained in One Hundred Seventy-first Report on Demands for Grants (2005-06) of the Ministry of Small Scale Industries. 5. nd 22.05.2006 182 Report on Action Taken by the Government on the recommendations contained in the One Hundred Sixtieth Report on the Tax Proposals affecting various segments of industries of the Ministry of Small Scale Industries. 6. rd 22.05.2006 183 Report on Action Taken by the Government on the recommendations contained in the One Hundred Seventieth Report on the Demands for Grants ( 2005-06) of the Ministry of Agro and Rural Industries. http://10.21.217.2/committeessum/2006/chapter_9_10.htm 10/3/2008 CHAPTER-IX Page 4 of 47 7. th 22.05.2006 184 Report on Action Taken by the Government on the recommendations contained in the One Hundred Seventy- second Report on Demands for Grants (2005-06) of the Ministry of Agro and Rural Industries. 8. 185th 22.05.2006 Report on Action Taken by the Government on the recommendations contained in the One Hundred Seventy- third Report on Inter-Sectoral Strategic Co-operation to Promote Small Scale Industries of the Ministry of Small Scale Industries. 9. th 22.05.2006 186 Report on Action Taken by the Government on the recommendations contained in the One Hundred Seventy- fourth Report on Operational Effectiveness of PMRY, REGP and KVI Schemes in Bihar, Jharkhand, West Bengal and Maharastra of the Ministry of Agro and Rural Industries. 10. 187th 22.05.2006 Report on Action Taken by the Government on the recommendations contained in the One Hundred Seventy- fifth Report on Key concern areas of SSI in select states of the Ministry of Small Scale Industries. 11. 188th 22.05.2006 Report on Demands for Grants (2006-07) Ministry of Agro and Rural Industries. 12. th 22.05.2006 189 Report on Demands for Grants (2006-07) Ministry of Small Scale Industries. 13. th 22.05.2006 190 Report on Demands for Grants (2006-07) of Department of Heavy Industries (Ministry of Heavy Industries and Public Enterprises). 14. st 22.05.2006 191 Report on Demands for Grants (2006-07) of Department of Public Enterprises (Ministry of Heavy Industries and Public Enterprises). 15. 192nd 23.11.2006/24.11.2006 Report on the Dalmia Dadri Cement Ltd. (Acquisition and Transfer of Undertakings) Amendment Bill, 2006 (M/o HI&PE) 16. 193rd 23.11.2006/24.11.2006 Report on Action Taken Report on the 178th report of the Committee on the Unlocking of Surplus Assets of CPSEs to generate resources for revival and the status of ancillary Un of CPSEs: A case study of HMT Ltd. VII. Summary of the Reccommendations (a) 178th Report Industrialization by CPSEs 9.4 The Committee observed that since their inception the CPSEs had initiated a wave of industrialization in their adjoining region. The CPSEs were direct mainstay for several small-scale ancillaries and suppliers and many more indirectly. These Units had thrived on the orders from CPSEs. The Committee was of the view that if the trend could continue this would have benefited both parent company and the ancillary units. Resource requirement of the HMT for its revival 9.5 Considering the resource requirement of the HMT for its revival and the Committee’s consistent emphasis on need to encourage the CPSEs to generate their own resources to assume full autonomy, also appreciating the long association of ancillaries with their parent HMT Company and taking a view of their offer to purchase the sheds at the price ascertained by http://10.21.217.2/committeessum/2006/chapter_9_10.htm 10/3/2008 CHAPTER-IX Page 5 of 47 State Government agency TECSOK as against the market price which is demanded by the HMT, the Committee recommends that the CMD of the HMT, in exercise of the powers vested in him, on taking a lenient and favourable view on demand of the ancillary owners, constitute a sub-Committee in the Board of Directors to review the issue in consultation with stakeholders within the parameters of Company’s financial requirements. Such sub-Committee should furnish its report to the Board of Directors of the Company, within a time frame who may then take a final view on the issue in its earliest meeting. 9.6 The Committee also recommended that the Government should formulate a common policy for the CPSEs for disposal of their surplus assets in a way to maximize the returns.
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