Swead SoIm, V«L XXII—N*. m a§di llov«a^c*« ifjt
LOK SABHA DEBATES
(Sixth Scniot)
(JTc/. XXII contains Nos . j — 70)
LOK SABHA SECRETARIAT MEW DBLHI
«2 il P (imiand) Th h m Sh i u n c * ( m m ) COttrKNtS
Ctunnift Ontf Answers to Questions— •Starred Questions N or . 328 to 339 - ...... 3011— 46 Short Notice Question No. 3 ...... 2046— 52 Written Answers to Questions— Starred Questions Nos. 340 to 3 9 1 ...... 2 0 53 -8 4 Unstarred Questions Nos. 533 to 547, 549 to 581 and 583 5 9 4 ...... 2084—2121 Statement re : fire at Lunej Oil W e ll ...... 2 T2I—23 Papers laid on the T a b le ...... 2123— 25 Calling attention to matter of urgent public importance— Implementation of Agreement between Prime Ministars o f India and P a k ista n ...... 2125— 29 Business of the H o u s e ...... 2130 Motion re : investment policy of Life Insurance Corporation . 2131—9 4 Shn Braj Raj S in g h ...... 2131—37 Shri D a n g e ...... 2 1 3 7 -5 5 Shri B. R. B h a g a t...... 2155—61 Shri Mahanty ■ 2 l6 l—67 Shn Nathwani . 2167—74 Shri A jit Singh Sarhadi 2174— 78 Shri Radha R a m a n ...... 2178—84 Shri Morarji D e s a i...... 2184—94 Discussion re report on the working and administration o f Com- panies Ac».. 2194—2254 Shn Ram Krishan 2195—2204 Shri Bimal Ghose 2205—12 Shri Narayanankutty Menon 2212—30 Shri Achar 2230—35 Shri P R. Patel 2236— 40 Shri A. C. Guha 2240-45 Shri Lai Bahadur Shastri 2245—4* Shri Satish Chandra . 2248—54 Daily Digest .... 2255—60 Consolidated Contents (17th November to 29th November, 1958) (1— VI)
+ " S S f 1z f b0VCJ *»«»* jndkatea that the Question was actually asked on the floor of the House fay that Member. LOK SABHA DEBATES
30 I I 2012 LOK SABHA Corporation which deal mamiy with the procedural matters relating to Saturday, 29th November, 1958 the administration of the Company were formulated in 1956. Some practical difficulties have been ex- perienced since then Therefore, cer- T h e Lok Sabha m et at E lev en of th e tain provisions are proposed to be C lo ck . added
[M r Speaker m the Chatr] Shri V C Shukla: Sir, my question O&AL ANSWERS TO QUESTIONS has not been answered I want to know the precise reasons because of State Trading Corporation which the examination of the Articles of Association of STC has been + necessitated In the last Session it f Shri V. C. Sknkla: was answered that the STC wants •3St J Shri S B. Muokmmr- to expand its activities by undertak- (^Shri NaashJr Bharucha. ing export and import of various Will the Minister of Commerce ither articles I want to know why 11 has been found necessary to take up aad badnstry be pleased to refer to the question of amending the Articles the reply given to Starred Question of Association No 585 on the 27th August, 1958 and state Shn Satish Chandra. Sir, the hon (a) whether the examination of Member is referring to the objects question of amending the Articles of which aie contained m the Memoran- Association of the State Trading Cor- dum of Association and not the Arti- poration has bincc been completed, cles of Association which deal with and the detailed administration of the company The reason for proposed (b) if >>o, the nature and scope of amendment is that, for example, m the amendments proposed to be made tl>e original Articles of Association and the decisions taken thereon’ there is no provision relating to the borrowing powers of the Board of The Deputy Minister of Commerce Directors There are similar other and Industry (Shri Sattah Chandra) difficulties which have been experienc- (a) No, Sir ed Therefore, the Articles of Asso- M F nHut Kar: May Z know (b) The Pakistan Government have whether it is to limit the activities of stated that Indo-Pakistan agreements S.T.C. or to expand the scope of ac- in the matter do not cover* propaganda tivities that the Article* at Association about Kashmir issue. This contention is being sought to be amended? is, however, baseless, and has been pointed out to the Pakistan Govern- A t Minister of Commerce aad Ib - ment. Propaganda for 'Jehad’ contra- 4aetrjr (Shri Lai Bahadur Shestri); venes n o t only the indo-Pakistan Sir, 1 shall not go Into the details, agreements but also violates the but I find that we have been mixing Security Council Resolution of Janu- up the two things—-Memorandum of ary 17, 1948, and Section V of Part I Association and Articles of Associa- o f the U.N.C.I.P. Resolution o f August tion. The Memorandum of Associa- 13, 1948. tion 'will mainly deal with the objec- tives and scope o f the S.T.C. As Shri D. C. Sharma: May I know if regards the Articles of Association, it the Government is aware that the is to deal with administrative matters. Director of Civil Defence recently We are thinking about this in order to called a meeting of the Mullas in expand the scope o f the S.T.C. in Pakistan and asked them to intensify certain directions. As regards the the campaign for 'Jehad'; and, if so, -working o f S.T.C., as Shri Ranga said what action Government proposes to there might be some deficiency, but take? we are trying to look into that matter and take necessary action. 'The Prime Minister and Mlnbter of External Affairs (Shri Jawaharlal Shri V. C. Shukla: May I know the Nehru); I am not aware of this parti- precise directions in which Govern- cular incident that the hon. Member ment want to expand the activities of has referred to, but, apart from that, S.T.C. after the amendment of the it is not quite clear to me what we Articles of Association and the Memo- can do in such matters except to ex- randum of Association? press our protest to them about thi« Press or other propaganda. Mr. Speaker: That does not arise out of this question. Shri D. C. Sharma: May I know if this matter has been brought to the 'Jehad* Campaign In Pakistan notice of the Security Council through *329. Shri D. C. Sharma: WiU the our permanent representative in the Prime Minister be pleased to refer to United Nations and, if so, what has the reply given to Starred Question been the nature of the communication? No. 396 on the 22nd August 1958 and Shri Jawaharlal Nehru: There aie state: communications passing between the (a) whether any reply has been re- permanent representative and the ceived from the Pakistan Government Security Council—from both sides. in Connection with the correspond- This matter has been brought to their ence on the impending danger arising notice repeatedly. The procedure is out of ‘Jehad’ campaign by Pakistan that such a protest is circulated to against India; and members of the Security Council. on thia toy the External Affairs Minis- the jehad movemant directly dr in- try. It k not up'to-date, bat it direct^. the importance of ouch « factory, only one optical and ophthalmic fac- tocjr will be established or more than v i ? $ 1 w ^st^T wr« ■one factory will be established? Sbri Tyagi: May I know on what Shri Manubhai Shah; One is more grounds was Durgapur preferred? than sufficient because, to begin with, Was it on account of climatic reasons this factory is going to start with a or on account of the availability of very small capacity and it can T>e raw material? locally expanded. Shri S. M. Baser Joe: May I know Shri Manubhai Shah: On all ac- what positive steps are being taken counts, after taking every quality and to expand the optical glass factory economic factor into consideration. at Dehra Dun? Will it be left to the Shrl Tyagi: Political grounds also! Defence Ministry or will it also be expanded? Shri Braj Raj Singh: In view of the importance of Firozabad as the centre Shri Maimhhil Shah: I could not of the glass industry in India, may I catch the question. foiow whether it was visited b y this Mr. Speaker: He asks, is there any team for choosing a site for this fac- proposal to expand the optical glass tory and, if so, what were the con- factory at Dehra Dun and whether it siderations which weighed with the is going to be done by the Defence team to locate the factory at Durgapur Ministry or the Ministry of Commerce and not at Firozabad? and Industry. Shri Manubhai Shah: The main Shri Manubhai Shah: There has consideration was that Durgapur was been a constant misunderstanding on m the coal belt. This particular type this point. My friend Shri Tyagi also of what is called optical glass re- referred to it last time. It is true quires a very high metallurgical fuel that the Dehra Dun Ordnance factory and therefore it was thought that has got a capacity to take the optical il is better to have the factory glass moulds and the blanks in order there. Also, the Durgapur coke to make lenses and prisms, but it oven batteries are going to give ua a does not really manufacture the opti- very rich gas which can be utilized cal glasses. This factory at Durga- for the process for the manufacture of pur is going to manufacture ophthal- this glass. mic and optical glasses which later on Shrl V. P. Nayar: May I know what can be distributed all over the country ar* the other essential raw materials including Dehra Dun to make various for the manufacture of optical glass? types of prisms and glasses and lenses. Shri Manubhai Shah: Quartz, felspar and sand. t o «rcr- Shri Taagamani: Now that Durga- ?rpr ’r r r v f t i fa v s ** pur has been ultimately chosen, may I Know whether the land required for this factory has been acquired or »ran«rr,sra v t ^ whether we will have te wait till the qf w f % TOT *T T$T | ? project report is available? «ft Shri Maanbbai Shah: As the hon. house is aware, in Durgapur there are Wt 'ft faw % ^ ^ ^ lots of projects going up and there ww $f * * v e m e wfrr 3 * amff is enough of land, and it can accom- * * * m ^ * yrfyc vt modate this factory there. a ott OMiAoraw* » N o v m a a m t m OniMww *»* 4M Ts>isil»asfl My point In whe- of Agricultural Rtsoareh is setting up ther the land that is required has at the Coffee Research Station. All teen acquired. than questions A m U be put to th* Ministry o f Food and Agriculture. Mr. Speaker: These are details. 1 am not going to allow such questions. Shtt 8. C. Saaanta: May 1 know The hon. Members must know that what difficulties the Coffee Research. there are other important questions Station had to open the soil testing also. Next question. laboratory by itself before this offer came? Was it due to financial diffi- Coffee Board culty or did not the Coffee Board + want it? Shri Subodh Haasda: Shri S. C. Saaanta: Shri Satish Chandra: Ibis labora- tory, as I said, is not being set up by Will the Minister of Cenuneree and the Coffee Boiurd. It is being set uj> ladastry be pleased to state: in the premises of the Coffee Board (a) whether the Coffee Board has in a coffee growing area, where along accepted the offer of the Indian Coun- with the coffee growers, it will assist cil a t Agricultural Research lor set- other agriculturists also by analysing ting up of a soil testing laboratory the soil of their fields in order to at the Coffee Research Station; determine the type and quantity o f fertilizers to be applied. (b) if so, whether the laboratory has been set up; end Shri S. C. Samanta: My question («) whether this laboratory is meant has not been answered. for intensive soil testing for Coffee cultivation only? Mr. Speaker: He has answered it He says it is not purely intended to The Deputy Minister of Commerce serve the purpose of the Coffee Board and Industry (Shri Satish Chandra): but other purposes of agriculture also- (a) Yes, Sir. and that therefore it was the Agricul- (b) Yes, with effect from August, ture Ministry that has taken the ini- 1958. tiative and the Coffee Board did not think of doing it. That is how I have (c) No, Sir. It is intended to serve understood the answer. all Agriculturists including coffee growers. Shri S. C. Samanta: Then, I should spirf Subodh Hansda: May I know like to know whether such soil test- whether any foreign assistance has ing arrangements had not been made been asked to set up this laboratory before, at this Research Station. and, if so, the nature of the assistance? Shri Satish Chandra: I could not Shri Satish Chandra: The Indian say exactly, but the very fact that this Institute of Agricultural Research is laboratory is being set up there will setting up 24 such laboratories all make this facility available to the over the country and one of them is coffee growers as well as other being set up at the research station farmers in that area. of the Coffee Board. The T.C.M. has helped in setting up these laboratories. Shri Dasappa: Was not All this soil testing bring done formerly in the Shri Subodh Hanada; What is the Agricultural Department of the Gov- total amount that will be involved in ernment of Mysore? this? Shri Satish Chandra: This is one Mr. Speaker: I did not catch the laboratory which the Indian Institute last word. O ral A nsw er* 29 NOVEMBER I960 Oral Answers 2 0 2 4 ' Shri P— W : I said Mysore. I for this shortage in external or in- say there were alio other arms fernal finance and for this rephasing. which used to take advantage of the • Agricultural Department there to Shri L. S. Mtshra: There is no ques- have the soil tested, both plantations tion of shortage at the present M well as other soils. moment. The figure of Bs. 4500 crores was decided in the N.D.C. meeting in Mr. Speaker: Does he refer to the May and we are still trying to main- Government of Mysore? tain that figure. Shri Dinppa: And also the neigh- Shri Rami Reddy: In view of the bouring areas. fact that some States like Andhra Pradesh have over-fulfilled the targets Shri Satish Chandra: A ll these of additional taxation fixed for the questions should be addressed to the second Five Year Plan period and they Ministry of Food and Agriculture. have raised the additional resources Shri Shivuuajappa: May I know as stipulated by the Planning Com- where the research station will be set mission, may I know whether die up? Planning Commission will increase the Plan outlay lor such States for the re- Shri Satish Chandra: This particu- maining period of the Plan? lar research station will be set up at Balehonnur where there is already a The Depoty Minister of Planning research station of the Coffee Board (Shri S. N. Mishra): That question has not arisen, because the Plan for Second Five Tear Plan each State was fixed on the basis of certain considerations—'internal balan- + ces, etc. Also, there has been no f Shri Barman: such demand and there can be no [ Shri Subodh Hansda: demand only on this basis, because *M t V Shri S. C. Samanta: the capacity for execution is also to f Shri Morarka: be taken into account, and not only L Shri Raul Reddy: the capacity for raising resources. Will the Minister of Planning be Shri Ramananda Ttrtha: It was pleased to state: stated that more attention has been (a) whether the rephasing of the paid to the minor irrigation projects. Second Five Year Plan has been In the rephasing of the Plan, may I finalised; and know if this idea has made any pro- gress and if so, in what quantum? (b) if so, the final variations, if any, in the financial and in the physical Shri S. N. Mishra: It was mention- targets? ed earlier by me in this House that we are now giving increasingly more The Parliamentary Secretary to the attention to minor irrigation works Minister a t Labour and Employment and an additional provision of Rs. 28 and Planning (Shri L. N. Mishra); (a) crores has been made in this respect. and (b). The National Development Council has decided to maintain the Shri Morarka: May I know the -outlay In the public sector over the names of those projects which were five-year period at Rs. 4,500 crores- formerly not included in the Plan, Further details will be furnished in a but which are now intended to be document to be presented to Parlia- started? ment in the course of this session. Shri S. N. Mishra: It is going far Shri Barman: What are the main out of the question and it is difficult factors that arose since the flnaliaa- to indicate each and every new pro- tion of the Plan which are responsible je c t 20*5 OrtU Answers 9» NOVEMBER lttft 0r«l AMMn MO* \ — ■ - - M ui t)n | i; The hon. Minister has Shri Nanda.* This is to five 'snore mentioned about the meeting of the information. There has been some NJD.C. which decided to maintain th^ slight variation in the assessment of maximum over-All figure. May I resources end also performance in know if the member* of the N.D.C. these three years and the resources have also undertaken to raise the re- for the next two years. There have sources in their respective States, as been no major changes, but more was planned by the Planning Com- details will be given. mission in the beginning? Shri Nagi Baddy: May I knew whether the Government will keep Shri Nanda: Yes, Sir; they have in mind, in the rephasing o f the Plan, offered to make increased efforts in to make sure that the industrially this direction. backward States will get their full Shri S. C. 8amanta: May I know targets without disturbance in the re- whether for rephasing this Plan, the maining period of the Plan? State Governments were asked which schemes should be altered? Shri Nanda: The industrial content of the rephased Plan has not been re- The Minister of Labour and Em* duced. On the other hand, greater ployment and "Planning (Shri Nanda): stress tore been placed on investment That is done through the annual plans relating to industry. Before the plan for a particular year is settled, there are consultations with Shri Nagi Reddy: My point was the States. whether States like Andhra Pradesh which are industrially backward Shri Ranga: Have the Government would get their full quota of indus- set apart any funds as a national trial development, as is planned in the calamity insurance reserve in order to second Five Year Plan, in the coming meet the special needs of such regions years or will it be reduced? which are affected by floods, as it An Hon. Member: In U.P. also. happened in U.P. recently and also in Andhra—Visakhapatnam and Snkaku- Shri Nanda: There is not going to lam—when floods ravaged the country be much reduction. destroyed quite a large number of minor irrigation works? Shri Panigrahi: The Planning Com- Shr) Nanda: The requirements arc- mission suggested reduction of the met from time to time. target from Rs. 4500 crores to Rs. 4200 crores, but the Prime Minister insist- ed on not reducing it. May I know Shri Heda: As the appraisals and whether Government propose to take reappraisals of the Plan are coming recourse to any new taxation mea- off and on, is there any regular scheme sures to fill up this gap? for reviewing the Plan periodically, once in three months or so? Shri Nanda: I have answered this Shri Nanda: There are reports about again and again. The Planning Com- the progress of the various schemes mission only presented an assessment which come from time to time. of the available resources on the basis of whatever was in view at the moment. But more resources had to Shri Bimal Gbsw; When the re- be collected in various directions and appraisal of the Plan was placed be- that matter has been mens folly con- fore the House last session, the total sidered. But some promises were was Rs. 4500 crores. May 1 know made even then by the States, which whether this rephasing now differs were more than what was indicated from that and i* not, what ja the in the statement of the Planning Com- necessity of placing another rephased mission. Plan now before the House? 2037 Oral A n tw trs » NOVEMBER 195* Oral Answer* 2 03 t statement is laid on the ^able of the Shri Barman: Theie is a general House. impression that due to increased ex- penditure on many o f fee items and Sta tement due to rise in prices of materials in foreign countries, there has been a (a) From the beginning, Govern- set-back. Since we are now told that ment have been anxious to secure the the original Agure of Rs. 4800 crores active support and co-operation of is going to remain, are we to under- all sections of the public, particularly stand that no major plan is going to o f non-official organisations. This suffer? approach has been pursued in com- munity project areas and in different Sbri Nanda: There is no question of fields of development. In September Rs. 4800 crores now; it is now Rs. 4500 1058, the National Advisory Commit- crores and therefore some items are tee on Public Co-operation was re- going to suffer. constituted so as to include represen- tatives of leading social service Shri Earnsnsthan Chettiar; The hon. organisations as^ well as some Mem- Deputy Planning Minister in reply to bers of Parliament belonging to a supplementary question today said 'ptrX'x*. CVwerrotrcrA. that the performance has to be taken es considerable importance to the into consideration. In view of this constructive work carried on by answer, may I know whether States voluntary organisations like the Bharat like Madras, which have performed gevak Samaj. more than the target, will be given increased flnancjpl aid for the rest of Government have also been keen to the Plan? secure the co-operation and assistance of Members of Parliament from differ- Shri Nanda: If a State manages to ent groups. The Informal Consulta- raise larger resources, it can certain- tive Committee of Members of ly expand the plan also on that basis. parliament associated with the Plan- 86 Shri Morarka: May I know the total ning Commission consists of members drawn from the Lok Sabha amount allotted for the projects or schemes which were not included in and the Rajya Sabha. At the appro- priate stage, it is proposed that special the Plan? committees of Members of Parlia- Shri Nanda: That information has ment should be associated with the been given in that document. formulation of the Third Five Year plan. Other aspects of the question are also receiving consideration. Implementation of Second Plan (b) The National Development lM1 / Shri HarUh Chandra Matkar: Council which was set up in August, * * • 1 Sturt 8. M. Banerjee: 1852 is composed of the Prime Minis- Will the Minister of Planning be ter of India, the Chief Ministers of all pleased to state: (States and the Members of the Plan- ning Commission. By the nature of (a) what steps have Government its composition and functions, this taken or propooe to take to enlist pody cannot be expanded te include active support and co-operation of pon-official Members. non-ofRdals including opposition mem- bers for the effective implementation Shri Harish Chandra Mathur: Since of the Plan; and we discussed the reappraisal on the floor o f the House, may I know— (b) whether Government have con- sidarad the suggestion to expand Na- Shri Nagi Baddy: When I read tional Development Council? through the answers that were placed on the Table, the statement was not Ike Pspsty Minister of Planning {Shri S. N. Miaiura): (a) and Shri S. W. H ahou Ifca ^statement the question is, one part of the ques- w u laid ob the Table a little late and tion is, about expanding the National it is just possible that some hon. Development Council. The National Members might not have cone across Development Council, in the nature it. Because of the long nature a t the of things, cannot be expanded. The rep ly , we thought that a statement National Development Council con- should be hid on the Table. sists of Chief Ministers o f States plus the Planning Commission plus some Mr. Speaker: The hon. Minister Ministers of the Central Government said that they are preparing a full dealing with these matters. So, un- statement and will place it on the less we change the whole basic struc- Table of the House sometime later ture of the National Development on—this is in regard to Question 332. Council, it cannot be expanded. Apart So far as Question 333 is concerned, from that, as it is, it is big enough a statement had been laid on the and becomes a conference. But we Table of the House a little later. Hon have been anxious in the past to form Members will kindly go through it all kinds of groups special groups, and put other questions later on. panels and so on—and we propose to Shri S. ML Banerjee; A copy of the do it much more than ever before. statement is here. Coming more particularly to Members of 'Parliament, we are naturally anx- Shri Nag! Reddy: As the statement ious to have the closest consultation is very small, I would request... with them in regard to this. The Shri Harish Chandra Mathur: I have Third Five Year Plan is, broadly put the first half of the question. speaking, nearly two years ahead but we intend starting this thinking and Mr. Speaker: He can put the other consultation process fairly soon. In half later on. fact, to some extent it is already be- ing done in a vague way. But I can Shri S. M. Banerjee: From the state- assure the House that we shall con- ment it appears that it is proposed sult Members of the House, not offi- that sub-committees of Members of cially I mean—officially, of course, Parliament should be associated with the matters come up m due course— the finalisation of the Third Five Year but otherwise We have repeatedly l^an. May I know whether Govern- to consult the Members through con- ment propose to call all political sultative committees and the like parties to form committees at the They will continue But, in addition Centre and the State level and, if not to that, we should like fairly intimate what are the reasons standing in the touch with the House and with the way of that? representatives of major parties in Mr. Speaker: All these are sugges- this House, because we attach the tions for action. greatest importance to this Third Five Year Plan being a united effort, Shri Tangamanl: The statement because it is going to be a big plan refers to that. requiring unity of effort, and so we Mr. Speaker: Then the hon. Minis- pope we shall have that consultation ter may reply. in the largest measure possible. The Prime Minister and Minister of Shri Harish Chandra M atter: The External Affairs (Shri Jawaharlal hon. Prime Minister and the hon Nehrn): It is not in reply to a speci- Planning Minister know the tenor of fic question but rather to the basic the speeches when we discussed the idea underlying it that the question reappraisal of the Second Plan. May is answered. I am myself at present I know whether after we discussed not seised of the exact answer. But ihe reappraisal o f the Second Plan 3pfX Oral A n sw ers 29 NOVEMBER 1958 Oral Answers sooty discussions have been held with Ike Minister of Labwr «nd Em- th* Sarvodaya leader, Shri Jayapra- ployment and nanBhf (Shri Nanda):: kash Narayan, and other non-ofilcial The committee has been re-constitut- and party leaders and if any effort ed and it has started functioning. has been made to evolve any machi- There is going to be another meeting nery to enlist active support of non- of this body very soon. As regards- offlcials and other parties? the earlier body, it functioned active- ly for a period and then it stopped Shri Jawalwrlal N du a : It is of the functioning, because the conditions essence of the Plan and the success changed and the body, as constituted: of the Plan to have—I would not call then, was not in a position to help* it “public support"; I think that is very much. rattier not quite an adequate word, because it is not a question of the Shri Harish Chandra Mathor: May Government activity being at the I know what changes have been Centre and the scope being added by brought about? others; but I will go further and say that almost to a large extent the ini' Shri Nanda: The changes that have tiatlve should be from the sections of been brought out are largely that the- the public with the Government sup- representatives of various non-official porting it, I think it is a better word. organisations and voluntary bodies,, Government may enlist support, but have been associated in much larger we attach the greatest importance to numbers, and also some Members of that. We always consider how best Parliament. to do it. It is not an easy matter, of course, but we are doing it and I think that, in a way, to some extent, Shri Daaappa: Last time it was- there has been success there; stated that it was going to be a peo- not to a very large extent, ples’ Plan and there were some I admit. The hon. Member referred arrangements to consult people at the to consultation with the Sarvodaya district level. But, later on, that as- leaders. The Sarvodaya leaders, at pect receded to the background. May any rate Shri Jayaprakash Narayan. I know whether any attempt w ill be laid stress on this public effort. He made to see that it really becomes a did not, so far as I am aware, refer Peoples’ Plan, by consulting people at to the Five Year Plan. In fact, I the district and taluk level? am not sure how far he is in agree- ment with the broad approach o f the Shri Jawaharlal Nehru: Well, in a Five Year Plan. When he referred sense, yes. But may I point out that to the public being brought into the the consultation with the people at picture, I entirely agreed with him. the district, taluk or block level is of But exactly how to do it, what to do, the highest importance. It is im- we did not discuss, except in a rather portant in regard to local needs—how distant way which has no particular far we can bring them into the Pi an. relation to our working of the Five That, of course, must be done to the Year Plan. fullest extent. But planning does not consist of merely listing needs or list- Shri Hsrish Chandra Mathnr: There ing even, if I may say so, resources. has been a reference to the National Planning is a much more intimate Advisory Committee on Public Co- and intricate operation—how to evolve operation. This committee has been these things. Therefore, in that part in existence for a very long time. of planning, we cannot consult the May I know why this committee is districts. The districts or taluks or now almost defunct and what are the blocks will say: "We want this, this difficulties and what are the reasons is necessary. We can do this” and for that? What steps are being taken there the consultation must be of the to make it mere effective? closest type. 2033 Oral Answers 29 NOVEMBER Oral Answen Skrlautt Ram Chakravart*y: The parties represented as ILLJ ls or first pwt ef the question actually .re- M.P.s and actually no other political lates to the implementation of the party or opposition party is represent- Plan and co-operation of non-officials ed in the District Planning committees and Opposition Members. May I and lower committees other than the know whether the hon. Prime Minis- Congress party? If so, what measures ter is aware that whilst certain Oppo- would be taken to remove this ano- sition parties are represented at the maly in procedure? top level, there is consistent opposi- tion fey his Party members for All- Shri Jawaharlal Nehru: The aame party committees at the lower levels, question, Sir. specially at the Taluk and Block levels where actually the implementa- Mr. Speaker: The same question as tion of the Plan takes place? In put by Shrimati Benu Chakravartty. what way can we overcome this Shri S. M. Banerjee: It is said in Tesistence? the statement that the Government attaches considerable importance to Shri Jawaharlal Nehru: That is the constructive work carried on by a broad question. It may be that in voluntary orgudsetiang like (he B hent a big country like India, all kinds of Sevak Samaj. May I know whether things happen But. we want this co- other organisations will also be given operation at all levels so far as we the same importance and w ill be are concerned and we shall certain- associated and facilities given for the ly go on pressing for it success of the Second Plan? Shri S. M. Banerjee: May I know Shri Nanda: Yes, Sir. They have whether it is a fact that active and been associated. They are all repre- enthusiastic support from the workers sented on this body, a reference to is not coming forth because of the which has been made in the answer. non-fulfilment of their demand for wage increase? The hon. Prime Shri S. M. Banerjee: What are the Minister has said that the Third Plan other bodies9 requires more active consideration Mr. Speaker: He put the question May I know whether the Government whether other bodies are associated would also consider a 25 per cent, and the Minister had said ‘yes’ . wage increase of the workers as sug- gested and recommended by all the Shri V. S. Shukla: The statement Central Trade Union Congresses in- says that other aspects connected with cluding the Congress led I.N.T.U.C ? enlisting public co-operation are being considered. What are the other as- Mr. Speaker: That does not arise pects that are being considered? out of this question. Shri Nanda: Some will be explored Shri S. M. Banerjee: Support from further. Ttfc Prime Minister refer- the workers? red to some of the things which are being contemplated. Mr. Speaker: Many other things also arise. The question is irrelevant Manufacture of Paper Shri S. M. Banerjee: How can the + Plan succeed without support from .... fShri Bahadur Singh: the workers? ' \Shri Bam Krishaa: Mr. Speaker: May be relevant in Will the Minister of Coasmerce aai other matters; not in this matter. Industry be pleased to state: Shri Nagi Keddy: Is the Govern- (a) whether the Tariff Commission ment aware that in almost all the dis- have been asked to go into the ques- trict centres, there are other political tion of fair prices to be charged by 3MS5 Orai A n sv u rt 29 NOVXMBKB 19M Oral A nsw ers 20 wholesalers and reteUers far paper Shri Acbar: May I know whether jmumfftctured in India; the Tariff Commission has ,made any special recommendation for news- (b) whether any report has been print? subatftted by the Tariff Commission to P*P*f which is required for th*. pur- its attitude towards Captain Bhavani #oaa o f Cfnsumption by the Centaal Singh; presumably they were movad •GovemaBOt and the State Govern- by the death of the boy. When he was •ments? first taken to the Police 'Station, Shri Mjuntbhai Shah: There are no Captain Bhavani Singh waa not meow- ^categories like that. They are all ed to contact the Embassy. However, on his return to Paris, Captain Bhavani 'weighed by the pound or quality or Singh reported the incident to the 'Whiteness. The Tariff Commission Embassy. Oi*r Ambassador in Paris -will certainly go into all the cate- gories and tell us what the price has already conveyed to the French -should be. Foreign Office the complaint about the ill-treatment of the officer while in the Shri V. P. Nayar: Is it a fact that Police Station. • •paper which is now supplied to the Shri Ram Kriahan: May I know •Government by the mills is supplied -at a specially reduced rate? whether he suffered any physical or material loss due to this accident? Shri Manubhal Shah: No. The rate The Prime Minister and Mlnletm of •contracts are always there. They External Affairs (Shri Jawaharlal J*ave relation with the prescribed Nehru): "Who, Sit? prices for the different categories. Mr. Speaker: Shri Bhavani Singh. Indian Injured in France Shri Jawaharlal Nehru: I do not ' Shrlmati IU Falchondhuri: understand this. Here is a motor Shri Ram Krlshan: accident m which a French boy is Shri Shree Narayan Das: killed. I do not know whether it is *335. j Shri Anlrudh Slnha: right or wrong: I can understand the Shrimati Maflda Ahmed: wrath of the villagers when they caw Shri Anrobindo Ghosal: one of their boys being killed. We are Shri Achar: asked about the damage suffered by the driver of the car. I just do not Will the Prime Minister be pleased understand this. tto state: An Hon. Member: In any part of (a) whether it is a fact that Capt the world. M. B. K. Singh was attacked and injured by a French crowd following Shri D. C. Sharma: It is said that -a motor accident on a Paris Road in there was some complaint about the the fourth week of September, 1958; treatment of the gentleman in the police station. May I know what kind (b ) if so, the details of the incident; of ill-treatment was there? And Shri Jawaharlal Nehru: I say, the (c) the action, if any, taken by the dominating feature is that boy died. Indian Embassy in Paris in regard to That is far more important than any- 'this matter? thing else. We cannot raise this matter before anybody. We ought to The Parliamentary Secretary to the be ashamed of ourselves. Minister of External Affairs (Shri •SadaHi All Khan): (a) to (c). On Mtadle Bases la Pakistan 20th September, Captain Bhavani 'Singh was driving a car near Paris *336. Shri II. C. Pataaik: Will the -and met with an accident in which a Prime Minister be pleased to refer to 'French boy lost his life. We deeply the reply given to Starred Question regret his death. No. 1461, dated 22nd September, 1958 and state: At the time the accident took place (a) whether the Government of sa crowd gathered and was hostile in India have taken any steps to verify Oral A tutw n 20 NOVEMBER lt t t Oral Am w tn the reports regarding guided missile a round about way. The answer has launching bases and military aero- already been given. dromes for modem Bombers of strategic aviation in Pakistan; and Shri V, C. Patnaik: May we know whether we have formulated any (b ) if so, the nature of information strategy of defence based upon the thus obtained? information that we might have The Parliamentary Secretary to the obtained? Minister of External Affairs (Shri Mr. Speaker: The hon. Prime Minis- Sadath All Khaa): (a) and (b). It is ter has already said that even the not in the public interest to divulge knowledge of what is happening there such information as the Government ought not to be disclosed to the public. of India may possess on this subject. Beyond that the hon. Member wants Shri U. C. Patnaik: May I know to know what effective action has whether the Government of India have been taken regarding that. seen the warning given by the U.S.S.R Shri Hem Baraa: I will leave the to Pakistan on the 14th of April last missile bases to themselves, but are that the guided missile launching Government aware of the fact that grounds and air bases for h ea vy Pakistan is building reinforced con- bombers of the B.47 and B.52 type m crete bunkers, which I have myself West Pakistan are a menace to Russia? seen, along the East-Pakistan border? The Prime Minister and Minister of Also, there has been massive troop External Affairs (8hri Jawaharlal movement alongside the border which Nehru): Yes, Sir. We saw that. the Chief Minister of Assam has alleged. May I know whether the Shri U. C. Patnaik: Have we, in our Government has tried to verify these turn, tried to verify these things and reports? tried to take it up either with the U.S.A. or with Pakistan that the Shri Jawaharlal Nehra: There is guided missile bases and air bases for nothing to this question, but to our heavier bombers and other military information there have not been equipment of a modem nature are a massive troop movements on the other menace to us also? side of the border. Shri Jawaharlal Nehru: We have Shri Nagi Reddy: In the reply referred this matter to the U.S.A. pre- given by the Prime Minister we find viously, and they have denied that that Pakistan has admitted that there there are any such bases there. are certain bases of that type in its reply to the U.S.S.R., but that the Shri U. C. Patnaik: May I know U.S.A. has stated that it has not had whether in reply to Russia’s note any information of that type so far as Pakistan has admitted some of those its reply sent to the Prime Minister air force bases for heavy bombers,, and goes May I know which of these if so, may I know whether we have replies is true, the reply sent by ourselves taken any steps to ascertain Pakistan to the U.S.S.R. or the reply whether Pakistan has got such bases, received by us from the U.S.A.? whether Pakistan has got launching Shri Jawaharlal Nehra: I have not grounds, and whether Pakistan has got the Pakistan reply in front o f me. got modern weapons superior to ours? So I cannot deal with it. I can only Have we tried to ascertain that.... deal with the reply that came to us Mr. Speaker: No, no. to our query from the U.S. authorities. Shri U. C. Patnaik: ...... and to Shrimati Bean Chakravartty: As far adjust our defence strategy? as the U.S.S.R. note of protest to Pakistan goes, they have been very Shri Jawaharlal Nehra: The hon. specific in mentioning Quetta, Gilgit Member is repeating the question in and Peshawar as well as the various Oval An*u>»r* 2> NOVBUBSR HM O d l AlMMTI a o «t •ixflalda which are being built for lc) and Shri Satish Chandra: What amount? •ftWHftWWMt: *HTWr#ift * * Shri Mannbhal Shah: The hon. Shri V. P. Nayar: What is the pro- Member i^ks the same question which portion? I answered before. This matter depends on demand and supply. There Shri Manabha! Shah: The policy has are hundreds and thousands ot been announced; it varies from 38 to varieties of utensils, and Government 90 per cent, on the actual imports In does not maintain a price register of the past them, but we know that if the avail* Shri V. P. Nayar: Could I have some ability of stainless steel is good/prices idea of the margin of profits which adjust themselves. Unfortunately, in the importers take? the last few months we have not been able to allow the import of as much Mr. Speaker: This question is com* stainless steel as required by the trade mg up again and again in the same manner. Shri Hada: Stainless steel is also required for industrial purposes. May Shri V. C. Shokla: Mr. Speaker, X know whether industry is suffering Sir...... because of the factories which manu- Mr. Speaker: Let the hon. Member facture utensils? wait He made representation to me. Shii Manubhal Shah: No, Sir. In Let me finish with the Short Notice industry stainless steel is allowed to Question first. actual users for specific purposes separately. This question is about Short Notice Question stainless steel required for utensils. Indians in Singapore aft arista + fsnr tfc f Shri N. B. Mtmisamy: [ Shri Snbbiah Amhalamr t $sr w r ? sw 8.N.Q. \ Shri Tangamanf: *r wrm ift vt t iw 4 No. S. 'j Shri D. C. Sharma: ( 8hri Raghunath Singh*. ’HT%m g fa w ti (tfowfrv PnrW I Shri Shree Narayan Das: fcfatwrvtf *ft qrr ^ ’ Will the Prime Minister be pleased to state: «ft »PJ*lf 5TT5 : 3ft Yo.ooo CT (a) whether it is a fact that *ft fft wrawr ^t anWt i & r thousands of Indian residents in 5? % ?O,O0O Z* fits? eft* VT Singapore have now been rendered 1TZ % W5ST #qTT ftfWT 3TOTT I stateless; W v % for «Tf55PF4 * s r^ (b) if so, what action Government of India propose to take to remedy aftsftfc vt ««ff?*rr5 ftuft * this issue; ^ 3rT#«ft i (c ) whether any urgent appeal has Shri V. P. Nayar: May I know been received by Indian Government whether the policy at present is only from the Indian Chamber of Com- to allow imports for actual users or merce, Singapore; whether importers are also being allowed, and if so, what the proportion (d) if so, the nature thereof; between them is? (e) whether the Indian citizenship Shri Manubhal Shah: The present Act provides any protection to the policy is to allow some of the major Indian residents in Singapore in case of such contingency; and stainless steel producers as actual users, but a greater quota is allowed (f) whether the Indian passports to the established importers, depend- would be restored until Singapore ing upon their past imports. citizenship is accepted on the basis ot O ral A n tw trs 29 NOVEMBER 1958 Oral A nsw ers 204I Commonwealth citizenship Act to be Shri N. R. Monisamy: During the passed hereafter? latter part of 1887, the High Commis- sioner had offered certain encourage- Hut Deputy Minister of External ment to the Indians residing there to Aftdn (Skttautt U W ad Menon): get themselves registered as citizens (a) No, Sir. of Singapore with a view to get the (b ) Does not arise. right to vote. As a result of it, some of the Indians there have got only (c) and (d). A letter has been rights for internal purposes and not received from the Indian Chamber of for international commitments, and Commerce, Singapore, listing certain they are not given any facility to difficulties and asking clarification on come to India, because visa is refuted. certain points. The main hardship appears to be due to the Singapore Shrlmati Lakshmi Menon: There is Government’s delay in issuing Singa- no restriction on anybody coming to pore passports, and issuing provi- India from Singapore. They have got sionally Identity Certificates instead the right of free entry and the right to those who want to go abroad. The of residence in India. The question is other point on which clarification has only the difficulty of securing pass- been sought relates to the reacquisf- port, and in the answer I have stated tkm of Indian citizenship by those what the difficulties are. who have already acquired citizenship of U.K. and the Colonies. The Prime Minister and Minister i t (e) No. External Affairs (Shri Jawaharlal (f) It is not possible to issue Indian Nehru): It is not possible for anyone to have it both ways, to have the passports to persons who are not Indian citizens. Pending issue of advantages of, let us say, Singapore citizenship and the advantages of Singapore passports, Singapore citizens of Indian origin can travel on Identity Indian nationality. Sometimes, an Certificates which are issued by the attempt is made to have it both ways. Singapore Government. Now, in Singapore, during this chang- ing period, these gentlemen or ladies Shri N. R. Mnniaamy: As a result of decided to opt for Singapore citizen- certain advice given by the High ship. They have ceased to be Indian Commissioner at Kualalumpur the nationals thereby. Now, apparently, residents in Singapore have been they say that *You advised us to wrongly put into this situation of mak- become Singapore nationals, and that ing themselves Stateless. Would the is wrong advice’, as the hon. Member Government of India offer easy condi- has said. I see nothing wrong. I tion*; in case they express a desire to still advise them, all Indians abroad, acquire Indian citizenship, and if so, insofar as they can, to associate what action would Government take? themselves with that place as nationals. That is our advice to them. But we Shrimatt Lakshmi Menon: Our High welcome them as Indian nationals if Commissioner in Kualalumpur has not they seek to remain there. given any wrong advice to the Indians there. A ll those people who wanted to acquire Singapore citizenship were Shri Tangamani: I would like to allowed to do so of their own free know whether the Prime Minister is will without any kind of pressure or aware that as many as thousand any kind of wrong advice being given repatriates arrived in Madras by a to them by our High Commissioner, specially chartered steamer on 19th and they did it; they acquired citizen- November, 1958 because a t this ship for their own advantage either uncertainty, and most of them happen because they wanted to have some to be old men, women and children? facilities for their children’s education or because they wanted to be enrolled Shrlmati Lakshmi Menen: This its voters. question has already been answered ^049 Oral Auuwrt 28 NOVEMBER19M Owl AiiMHn afeo that those people who had returned in Shrtmatl L d A M i N m m k ol large numbers from Malaya are people them are registered under the tfJC. who were entitled to return under the and Colonies Citizenship Act; those contract under which they went to who are registered under that Act Malaya. It Is the backlog of that cannot relinquish their citizenship number which had returned recently. unless they are adopted as citizens by Owing to the inadequacy of shipping some other country. That is, even if facilities, they had to stay there longer, they want to relinquish their citizen* and now they have come back. ship, they cannot do so, unless they are adopted by another country. Sane of them are registered under the Shri Joachim Alva: Do we have a Singapore Citizenship Act, and they co-ordinated plan in regard to citizens also remain as Singapore dtfaw both in Burma and in Singapore, that There are certain complications regard- is, Indian citizens who are domiciled ing their relinquishment and their citizens, who are in serious trouble, to coming back to us. That needs a lot help them to remain there, or to help of explanation, and if you wish, I shall them to register themselves as Indian explain. citizens so that they could come over to India and we can help them by Shri SabMah Ambaiam: May I know rehabilitating them, tor otherwise, they whether any advice was given by our just cannot come to India and And a Government, that is, by our High job or habitation? Commissioner in Malaya, on the basis of which a number of Indian residents Shrtmatl U tahm l Menon: People have acquired this dual citizenship? who come from Singapore do not need any rehabilitation at all. In fact, the Shri Jawaharlal Nehra: I have just difficulty that is suggested by the now stated that it is not a question of Chamber of Commerce is because, if any special advice to anybody. Our they acquire Singapore citizenship, policy is to inform Indians abroad, they cannot tran'-frr their assets to that is, those people who have lived India. On the other hand, if they there for some time, for some genera- remain Indian citizens, they can. That tions, that it is for them to decide is the difficulty that the Chamber of whether to remain Indian nationals or Commerce was complaining about. accept the nationality of the other The hon. Member has raised two country. Previously, this decision was entirely different questions, namely, not necessary when we were not an Burmese citizenship and Singapore independent republic. Then, some citizenship kind of—broadly—British nationality applied to everybody in law. Now, that Shri Subbiah Ambaiam: May I know cannot happen. They have to choose. whether the Indian residents affected They have to balance the advantages by this citizenship question are only and disadvantages. If they want to confined to the Indian residents in remain Indian citizens, they are wel- Singapore or also to Indian residents come to do so, but then they do not in Malaya? get the advantages of citizenship, vot- Shrtmatl Lakshml Menon: The ques- ing and many other privileges of the tion refers to Indian citizens in countries they live in, whether it is Singapore. East Africa or Malaya or other places. Our advice to them has been: *You Shri D. C. Sharma: May I know can choose as you like; if all your whether all the Indians settled in interests are in that country, it will Singapore have accepted Singapore be advantageous for you to function nationality or whether some of them as citizens of that country and not as have not, and in the case of those who aliens living there.' have not, what is going to happen to then under the new Singapore Citizen- Shri Tangamanl: The hon. Prime ship Act? Minister has said that they have to Oral Admmm 29 NOVEMBER 1958 Oral Answers 20& choose either the one or the other. jtturi Jaipal Singh: I would like a Bat, with greet respect, H is not so further clarification of the general simple as that, because a number of policy statement the Prime Minister them who have stayed there have got ha* made. Would that advice, or either their relations or others in India rather the general policy, apply to also. I would like to know what is hundreds and thousands of persons the advice which our High Commis- who are in Ceylon now where the sioner has given to those Indian Government of Ceylon refuses to give residents in Singapore, where some of th#m Ceylonese nationality? What is them are holding British passports and the position there? Are we trying to some even Indian passports. Has he tell them: ‘Come back; we welcome advised them to accept Singapore you'? Is that the position? citizenship or retain Indian citizen- ship? Mr. Speaker: It does not arise out of the main question. Mr. Speaker: The hon. Member is going on dinning it. There is no mean- Shri Jawaharlal Nehru: That ques- ing in labouring this point. The hon. tion is entirely different. They have Prime Minister has just said that in not been, and are not, Indian nationals. the changed circumstances we would There is no question of choice at all certainly welcome their settling down there, except. . . . there. There is no question of special instructions. Shri Jaipal Singh: What are they now ? They are not Ceylonese. Shri Jawaharlal Nehru: If they want to become Indian nationals, they Shri Jawaharlal Nehru: That is a are welcome to do that too. question which the hon. Member Shri Tangamani: I would like to might address to the Ceylon Govern- know what was the advice given by ment. The position is that they axe our High Commissioner there? not Indian nationals, but in certain circumstances, if they so freely wish, Mr. Speaker: No advice was given. a number of them can become Indian I heard it as much as the hon. Mem- nationals, if they satisfy our condi- ber. The hon. Prime Minister has tions, and it is a free wish, not an said twice that no special instructions imposition on them by any party. In have been given except to tell them that sense, it would be true to say generally: ‘Let them settle down there. that. But it is not true in the case at It will be welcome. But if they want Singapore; to call these people State- to come back, let them come back.' less is not quite correct But it is Shri Jawaharlal Nehru: It is not a true—and that is the major problem question of coming back. That may with Ceylon—that several hundred or may not arise. It is a question of thousand people who live in Ceylon, remaining Indian nationals. If they —^many of them have been bom in remain Indian nationals, then, if I may Ceylon, sometimes even their parents use the word, they are at the mercy were bom in Ceylon—have been of the other Government They can denied certain normal rights of dtixan- be sent back. They need not come ship- This question arose before th en back as soon as they decide. After were two nationality laws. It aroee all, Indian nationals live elsewhere. 30, 40 or 50 years ago—I forgot the But in every country, including; if I exact time. Now it has taken another may say so, India, nobody likes aliens shape in that there are two independ' in large numbers to settle down. They efit countries. According to us, Use become a problem. So if they do not vast majority of them ere, or ought accept the nationality of the place, to be, Ceylon nationals. they are likely to have continuing Baja Mahendxa Piatap: We can difficulties, and may even be asked to advise them to become world leave. We have no logical reason to protest 20J3 u N o v e m b e r 1M8 w r tit* * A*moer* WRITTEN ANSWERS TO to various State Governments for the 'QUESTIONS development of the silk handloom industry. This includes an amount o i Industrial Comntttoe «a Cotton Rs. 57,63,733-12*0 sanctioned towards Textile working capital and share capital. *146. Shri T. B. Vittal Rao: Will the This has enabled State Governments Minister of Labour and Employment to bring silk weavers into the co- be pleased to state: operative fold. (a) whether Government propose to Second Five Tear Plan of Kashmir convene a meeting of Industrial Com* mittee on Cotton Textile to discuss •*4* /S h r i Nagi Reddy: the situation in the industry; \ Shrlmati Parvathi Krishna: (b) it so, when the same is likely to Will the Minister of Planning be be convened; and pleased to state whether any inde- pendent team appointed by the Plan- (c) if reply to part (a) above be in ning Commission proposes to visit the negative, the reasons thereof? Kashmir to assess the implementation The Deputy Minister of Labour of the State’s Second Five Year Plan? (Shri Abid AU): Ca) No. The Deputy Minister of Planning (b) Does not arise. (Shri S. N. Mishra): No such team has been appointed by the Planning Com- (c) Questions relating to remunera- mission. The Planning Commission's tion of Labour are already under the Adviser, Programme Administration, consideration of the Textile Wage keeps in touch with the progress of Board. Certain other questions relat- implementation. ing to the Industry were considered recently by the Textile Enquiry Com- Cement Factories mittee appointed by the Ministry of Commerce and Industry. •343. Shri R. C. Majhi: Will the Minister of Commerce and Industry 811k Handloom Weavers’ Co-operative be pleased to state: Societies (a) whether it is a fact that new *341. Shri Keshava: Will the Minis- cement factories have not been ter of Commerce and Industry be established according to the sanction pleased to state: given for their establishment; (a) how many silk handloom (b) if so, how many are yet to be weavers’ co-operative societies arc completed; and there in the State of Mysore; (c) whether any time was fixed for (b) whether any survey of the establishment while according the number of silk loom weavers has been sanction for these factories. made in the State of Mysore and if so The Minister of Industry (Shri with what result; and Manubhai Shah): (a) Yes Sir; some (c) what steps the Central Govern- cement factories have not been ment have taken to bring the silk loom established according to schedule. weavers into the co-operative field? (b) 22 new units and 26 expansions. Hie Minister of Industry (Shri (c) When licences for establishment Maaubhal Shah): (a) 39. of new cement factories or expansion (b) No such survey has been con- of existing units are granted, the ducted by the Central Government. dates by which the projects are to be completed are Indicated in the Export of Bicycles ed for driving under the influence of liquor in London claimed, diplomatic •844. Shri A jit Singh Sariudl: WiU immunity; and the Minister of Commerce and b d n - try be pleased to state: (c) if so, whether this Prince was entitled for such privilege? (a) whether it is a fact that there are great potentialities of export of The Parliamentary Secretary to the bicycles from India to South East Minister of External Affairs (Shri Asian countries; and Sadath A ll Khan): (a ) No. (b) if so, what steps are being (b) In a statement to the Indian taken to increase the exports? High Commission, London, the Prince concerned stated that during the in- The Minister of Industry’ (8hrl terrogation by the Police he was Manubhal Shah): (a) and (b). A asked whether he was a privileged statement is placed on the Table of person to which he answered in the the Lok Sabha. affirmative under the impression that privileges to which Indian Princes were entitled before 1947 were still Statement valid. Apart from this, he has stated It would not be correct to say that that he never mentioned anything “there are great potentialities of ex- about diplomatic privileges. port of bicycles from India to South (c) No. East Asian countries”. The internal ruling prices of Indian cycles are Production of Cement appreciably higher than title prices at which the imported foreign made *346. Shri Panlgrahl: Will the Min- cycles are now available in South ister of Commerce and industry be East Asian markets. In spite of the pleased to state: efforts made by the Engineering Ex- (a) whether the target of IS port Promotion Council and certain Indian manufacturers of cycles, no million tons of cement as fixed for appreciable exports of our cycles the Second Plan period is found pos- have so far been possible. Never- sible of being achieved; and theless, at the instance of the Ministry (b) how much of this target re- of Commerce and Industry, the All mains to be fulfilled during the last India Cycle Manufacturers’ Associa- two years of the Plan period? tion are attempting to formulate a scheme to promote exports of bicycles The Minister of Industry (Shri as a collective effort of all those en- Manubhal Shah): (a) No, Sir. gaged in the cycle industry. (b) According to the approved pro- gramme of production on the basis of Diplomatic Immunity for Indian schemes covered by import licences Princes for plant and machinery, it is expect- r Shri Damani: ed that the present annual installed *845. ^ Shri Raghnnath Singh: capacity of 7*05 million tons will ^ Shri Ansar Karvanl: increase to 9*18 million tons in 1959 and 9*94 million tons in 1960-61. Will the Prime Minister be pleased to state: Reviews at Progress o f Plan (a) whether Indian Princes on •M7. Shri Bimal Ghose: Will the private visits abroad are entitled to Minister of Planning be pleased to diplomatic immunity; state: (b) whether Government are aware (a) whether Annual Plans and that recently an Indian Prince charg- Annual Reviews of the Progress ot *0 $7 Written Annoers 29 NQVBMBSR 1988 Written Awtwvrt the Second Five Yew Plan are being (b) the additional foreign exchange A il«i.A M a u Legal Consaltattvs spent due to the crista; and Committee A (c) the delay involved in the exe- * ttl -T**114 **• *• Mnnisamy: cution of projects due to the same? \ Shri Hen Baraa: The Deputy MMHw of Planning Will the Prime Minister be (Shri 8. N. M bh n ): (a) to (e). The to state: Suez crisis is estimated to have raised freight costs by Rs. 15—20 (a) the international legal t^ ite crores. Other effects such as delays that had come up for discussion in in deliveries cannot be assessed in the session of Asian-Airican Legal any precise terms. Consultative Committee at Cairo in October, 1958; and Shares of Private Enterprises (b) the names of the members of the Indian delegation who took Shri Waiter: part in that session? Shri Vasndevan Nair: The Parliamentary Secretary to the Will the Minister of Planning be Minister ef External Affairs (S ta pleased to state: Sadath All Khan): (a) The legal pro- blems on which discussions (a) whether the State Government place were: of Kerala had requested the Planning Commission to agree to the State Diplomatic Immunities, Government investing from State Principles of Extradition, funds in the shares of private indus- Immunity of States in respect of trial undertakings in order to en- Commercial Transactions, courage industrialisation in that State; and Dual Citizenship, Status of Aliens, (b) if so, whether Planning Com- Recognition of Foreign Decrees in mission had agreed to the suggestion? Matrimonial matters and free- legal aid. The Deputy Minister of Planning (Shri 8. N. Mishra): (a) The State Government have periodically re- The Committee had also before it quested the Planning Commission to the reports of the International Law approve their making investments in Commission of its Ninth and Tenth Sessions. individual industrial undertakings in die private sector and they have also (b) The members were: periodically requested that a lump sum provision be made for such 1. Shri M. C. Setalvad. investments. 2. Shri Sa^hjt) Chaudhuri. 3. Shri V. S, Deehpande. (b) The request for a lump sum 4. Shri I. P. Singh provision has not been agreed to since according to the policy en- unciated by the Central Government Conference of chief Inspectors of the State Governments are not Factories ordinarily expected to make invest- ments in private sector projects. ‘ SSL. Shri Ifcngamani: Will the* Some of the proposals for investment Minister of Labour and Employment in individual undertakings have, be pleased to state: however, been approved as a special (a) whether the Conference of case. Chief Inspectors of Factories took 206l Written Answer* 28 NOVEMBER 1988 Written A n n o tn SO & place in Hyderabad dining Septan* of 1957. The arrears . have to be ber, 1858; ‘ recovered as follows:—‘ (b ) if so, the decisions taken; and Rj. (i) by the Ministry of Defence 152 lakhs (c) the steps taken for implemen- (appra.) tation of the decisions? 00 by the Ministry of Re habilitation . . X04 lakhs The Deputy Minister of Labour (iii) by the Ministry of Works, (Shri Abld AU): (a) Yes. Housing and Supply 37 lakhs (iv) by other Ministries of the (b) The main decisions taken were Governmrpt of India 23 Iskhs with regard to (i) the appointment of Safety Officers and Certifying Sur- Total . . 316 lakh* geons, (ii) drawing up of a list of machines indicating the safeguards to Details are given in the Statement be provided by manufacturers, (iii) laid on the Table of the Howe. [See extending the limit for filing pro- Appendix II, annexure No. 54.] secutions to six months, and (iv ) the framing of rules for the control of hazards in the manufacture and for- Piece-Rate System of Payment mulations of insecticides. •854. 8hri Haider: Will the Minis- ter of Labour and Employment be (c) The decisions are under con- pleased to state: sideration in consultation with the State Governments. (a) whether any discussion took place on application of piece-rate system of payment in Calcutta docks Arrears of Kmt of Government with the representatives of employers Buildings and employees; C Shri Raghnnath Singh: (b) if so, the result thereof; and I Shr| Ram Krishan: i Shri Vajpayee: (c^ whether the recommendations J Shri Wodeyar: of the Jeeleebhoy Committee will be “ I Shri A. K. Gopalan: introduced by stages in docks? | Shri Knnhan: i Shri Naravaaankutty Menon: The Deputy Mfnisttr of Labour I Shri V. C. Shukla: (Shri Abld All): (a) and (b). The Jeejeebhoy Committee held discus- Will the Minister of Works, Hous- sions with all concerned before sub- ing and Supply be pleased to state: mitting their review report, which is under consideration. (a) whether it is a fact that arrears (c) There is no such proposal under -of rent on Central Government build- consideration. ings run into a few crores of rupee3; Cb) if so, the broad details of those Indo-Pak Canal Waters Dispute nrrears; and • m e / Shrtmatl MaBda Ahmed: Shri Geray: (c) the nature of the steps taken or proposed to be taken to recover Will the Prime Minister be pleased the arrears? to state whether it is a fact that the International Law Association which The Deputy Minister of Works, held its meeting in New York during Honing and Supply (Shri Anil K. September, 1958 upheld India's stand Ch*««ta): (a) to (c). Figures are in toto on the Canal Waters dispute available only up to the later pert with Pakistan? 40*3 Written A rm o trt 29 NOVEMBER 1988 Written A nsw ers 2064 The Deputy Minister of External Chairman and the representatives of Affairs (Shrlmatl fiStaOmii Menon): parties as members for promoting a The International Law Association, settlement of the dispute. which is a non-governmental organis- ation, held a conference in New York Employees’ Provident Fond in September, 1958. They laid down certain general principles governing f Shri Vajpayee: the use of rivers flowing through the J Shri Bam Krishan: territories of two or more States. They *” ■ ■) Shrlmatl Farvathi did not consider any specific pro- I Krishnan: blem. There was thus no question of Will the Minister of Labour and their upholding any particular stand Employment be pleased to state: ■or claim. (a) whether it is a fact that Gov- A copy of the resolution passed by ernment have been approached by the International Law Association is the textile-mill-owners urging that placed on the Table of the Lok Sabha. new owners who wanted to restart [S ee Aooendix II annexure No. 55.1 closed establishments should be ex- Honourable Members may draw their emp‘ ed from the operation of the Em- own conclusions from the principles ployees' Provident Fund Act for some ■enunciated in this resolution. time; and f f Tea Plantations in Kerala (b) if so. Government’s reaction thereto? f Shri E. Madhusudan Bae: •356. J Shri N. R. Monisamy: The Deputy Minister of Labour Shrl Go ra y :' (Shri Abid Ali): (a) Yes. Requests from some Mills have beer received. Will the Minister of Commerce anh Industry be pleased to state: (b) The matter is undf-r consider- ation. (a) the estimated loss in the out- put of tea and Foreign Exchange Code of Discipline In Industry earnings therefrom, as a result of C Shri Rajendra Singh: labour troubles in Kerala Tea Plan- tations; and ( Shrl D. C. Shanna: *358. V Dr. Ram Subhag Singh: (b) the steps taken or proposed to | Shri Afhar: be taken in the matter? I Shri Raghunath Singh: The Deputy Minister of Commerce Will the Minister of Labour and and Industry (Shri Satish Chandra): Employment be pleased to state: (a) Precise information is not avail- (a) whether it is a fact that a num- able. The loss in output of tea is ber of cases of breaches of the Code estimated by the planters at 4*8 of Discipline in Industry have been million lbs. in Munnar and Peermade reported to Government; areas. The loss in foreign exchange earnings on this basis is estimated (b) if so, the number thereof; at Rs. one crore. (c) whether Government propose to have a study of strikes in the country (b) The conciliation machinery in the context of the Code o f Dis- could not bring about a settlement. cipline in Industry; and There has been a demand for adjudi- cation of the dispute but the workers (d) if so, when will this study be organisations are divided. The State undertaken? Government, therefore, propose to set The Deputy Minister ef Labour up a Conciliation Board under section (Shri Abid All): (a) Yes. S o f the Industrial Disputes Act, 194? ■with an independent person as (b) 88. a063 W ritten Answers 2ft NOVEMBER 19*8 Written Aruwert 30 6 $. S t a t e m e n t October, 1958 to the effect that there is immense potentiality for popular- (a) and (b). The Bombay Govern- ising Indian tea in West Germany; ment propose to set up 16 Industrial Estates during the Second Five Year (b) if so, the steps, if any, taken Plan one each in the following or proposed to be taken to that end; places:— (c) the quantity of Indian tea 1. Kurla (Bombay city). present consumed in West Germany, 2. Atale near Kalyan (Bombay). and 3. Udhna. (d) the estimated potentiality of 4. Poona. the increase of consumption as a 5. Kolhapur. result of the steps taken or proposed 6. Baroda. to be taken? 7. Ahmedabad. The Deputy Minuter at Commerce 8. Mehsana. and Industry (Shri Satish Chandra): 9. Malegaon. (a) to (d). A brief report on the sub- 10. Karad. ject appeared in a Calcutta daily on October 20, 1958. Government are 11. R ajkot trying to ascertain more fully his 12. Bhavnagar. views in the matter. At present, 13. Kandla. about 8 million lbs. of Indian tea an consumed in West Germany. 14. Nagpur. 15. Amravati. Promotional efforts made with a 16. Nanded. view to encourage the consumption of (c) No, Sir. tea in that country have not been very successful due to popularity ot other (d) Does not arise. beverages and high imports on tea. 3067 Written Answers 29 NOVEMBER 1958 Written Answers 2068 Radio-Active Ctataabnte (c) what are our internal require- ments annually; •ML Shri Naraslmhan: W ill the M aw Minister 'be pleased to state: (d) whether export possibilities have been explored; and (a) whether the various important articles of imported food such as (e) whether Government contemp- milk and milk-powder are tested for late the establishment o f an Institute assessing their radio-active contamin- of Research and Marketing Survey ation; of Eucalyptus Oil? (b) if so, whether any organisation Hie Minister of Industry (Shri has been set up for the purpose; and Mannbhai Shah): (a) No, Sir. (c) whether the recent increase in (b) Does not arise. the number of nuclear tests has been (c) Between 2,50,000 to 3,00,000 lbs. found to have any direct effect on articles of imported food of the cate- (d) Yes, Sir. But the main diffi- gory mentioned above? culty is the low cineol content of the indigenous oil. The Prime Minister and Minister of External Affairs (Shri Jawaharlal (e) Research work connected with Nehru): (a) and (b). While sample development of essential oil industry analysis of indigenous edible and im- is already carried out at various ported milk powder are carried out in national research laboratories. Dir- the laboratories of the Atomic Energy ectorate of Agriculture Marketing Commission with a view to ascertain- Inspection are also exploring possi- ing their radio-active content, no bilities of laying standards for the large-scale or systematic test of all quality of Eucalyptus Oil for export. imported foodstuffs is done, as Gov- ernment do not consider it necessary Revision o f U.N. Charter or practicable. *383. Shri Karatkar: W ill the (c) According to the findings of the Prime Minister be pleased to state as United Nations Committee on the to how the matter regarding the re- effects of atomic radiation, radio- vision of the U.N. Charter stands at active contamination of the environ- present? ment resultng from explosions of nuclear weapons constitutes a grow- The Parliamentary Secretary to the ing increment to worldwide radiation Minister o f External Affairs (flferi levels. The results of the analysis of Sadath All Khan): There have been no foodstuffs, both here and in other developments since the Starred countries, however, show that the Question on the same subject. No. radio-active concentration in food- 1489 by Shri D. C. Sharma, was ans- stuffs is at present insignificant and wered on 5th September, 1957. below the danger level. Film on U ntOBchability Eucalyptus Oil f Shri DaUtt Singh: *M t Shri Subbtah A inhalant: Will \ Shri B. C. Mulllck: the Minister of Commerce and In- Will the Minister of Information ami dustry be pleased to state: Broadcasting be pleased to refer to (a) whether any assessment o f the the reply given to Starred Question annual production of Eucalyputs oil No. 1021 on the 18th March, 1958 and in India in general, and Nilgiris in state the progress so far made in particular has been made; regard to the proposal for producing a full length educative film on the t h e Mhriater of Information and Serieottare Schemes hi Manlpnr BWdcastmg (Dr. Kaifcar): A script it under consideration. IM s and *W7. Shri Aehaw Singh: Will conditions for the production of the the Minister of Commeree and Indus- film are being finalised. try be pleased to state: Export of Oils and Oilcake* (a) whether any production target has been fixed for the approved •MS. Shri Hem Barm: Will the sericulture schemes in Manipur; and Minister of Commerce and Hadustry be pleased to state: (b) if so, what is the annual return (a) whether it is a fact that there of production from the schemes al- has been a steady fall in the export ready implemented in the Manipur o f o ils and oilcakes resulting in loss Territory? of traditional overseas markets; and (b) if so, what steps have so far The minister of Industry (Shri been taken to improve the position? Manabhai Shah): (a) Yes, Sir. The Central Silk Board has fixed a pro- The Deputy Minister of Commerce duction target of 3,500 pounds of raw and Industry (Shri Satish Chandra): silk per annum by the end of th*' (a) There has been a decline in the Second Five-Year period. exports of vegetable oils, but exports of oilcakes have lately improved. (b) 2,800 pounds of raw silk (b) Exports of oils have declined on account of our prices being high as compared to international prices. If % wft* faron «t o t tiroita sfcr the efforts to increase production of oil seeds succeed, it should be possi- ble to make larger supplies available W *JT> : TOT JWK for export at competitive prices. A statement showing the steps taken to step up exports of oils and oilcakes s t o e s * % v is laid on the Table of the Lok anrw fqT «r$T ft? * Sabha. [S ee Appendix II, annexure sftnrcff * fogrro t o vftm r No. 56.] % * 1*. i f 9XVR i m Change in the Coarse of River Bavi fat m*** t o to t qfVvrnr forerr ft ’ *366. Sardar Iqbal 8ingh: Will the Prime Minister be pleased to state: (a) the acreage of land gone to w f U N * ) ■'for Pakistan side due to the change in the course of Sutlej and Ravi Rivers dur- araw w f s mw ing the year 1958; and fTOT ft, w * ftw r ft ft? fa * (b) the details and amount of help Vt !TW fRT $ *, Z* * fa *flT or assistance given by the Govern- 1TTOT $ sfW ment of India and the Government of Punjab to the affected persons? % «w r fr m r % which showed Kashmir as part of India and which were, * therefore, q * t f (0) The voting in the plenary was Indian Engineers Car Ghana and feaq 27 countries in favour 41 against and 13 abstentions. The Joint resolution f Shri Harisb Chandra was, therefore, not adopted. ( Mathur: *171. 4 Shrimatl Ha raJehoudfcnri: ] Shri Baghnaath Singh: Power Projects, Punjab [S h ri Bthhntt Mishra: Will the Prime Minister be pleased *3n. Shri Bam Krishan; Will the to state: Minister of Planning be pleased to state: (a) whether the Governments of Iraq and Ghana have asked for the (a) whether the ceiling limit on Services of Indian Engineers; and power projects of the Second Five Year Plan in Punjab has been (b) if so, what are their require- increased; ments; and (b) if so, by what amount; and (c) what is our response in the matter? (c) whether any additional funds have been provided for rural electri- The Parliamentary Secretary to the fication in Punjab State during 1968- Minister of External Affairs (Shri 89? Sadath All Khan): (a) Yes. The Deputy Minister of Planning (b) and (c). The Government of Iraq (Shri S. N. Misfara): (a) No, Sir. asked for the services of two highly qualified irrigation engineers for a few (b) Does not arise. weeks to advise them on their dam and irrigation projects and the Gov- (c) No, Sir. ernment of India released the Chair- man o f the Central Water and Power Commission and a Director o f the Surgical Instruments Bhakra administration in response. • » « /S h r i Subodh Hanada: The Government of Ghana have \ S h ri S. C. Samanta: asked the Government of India for the loan of upto 250 officers for service Will the Minister of Commerce and in Ghana. So far, requisition has been Industry be pleased to state: received for 50 experts in the fields (a) whether the report of the panel of Agriculture, Irrigation and Power, for surgical instruments and appli- Health/Medicines, Posts and Tele- ances has been finalised; communication, Public Works, Survey and Railways. Names of suitable (b) whether there is any proposal Officers for some of these posts have to manufacture these articles (surgi- been recommended to the Government cal instruments and appliances) in the of Ghana for consideration. Four country: and Indian Officers for service in the (c) if so, the steps taken in this Ghana Railways have so far been direction? selected and their release will be arranged after the offers of appoint- The Minister of Industry (Shri ment have been accepted by them. Manubhal Shah): (a) Yes, Sir. Floor Mata and Mattings (b) and (c). The Panel has made certain recommendations in regard to *374. Shri V. P. Nayar: Will the manufacture of Surgical instruments Minister of Works, Hearing and 8«p - and appliances, which are under be pleased to refer to the reply ^examination. given to Unstarred Question No. 538 1075 Written Answers 29 NOVEMBER 1958 Written A nsw ers 2076 an the 19th August, 1958 and state the jute prices in certain markets during total value of floor furnishings bought October, 1958. * since the receipt of the circular from the Commerce and Industry Ministry (b) The main reason for this fall in in March, 1958 and the value of coir prices may be the expectations of a products bought, if any? good jute and mesta crop in the cur- rent season. A statement showing the The Deputy Minister of Works, ruling prices in September and October Housing and Supply (Shri Anil K. 1958 is laid on the Table of the Lok Chanda): The total value of floor Sabha. [See Appendix II, annexure furnishings procured by the Ministry No. 581 of Works, Housing and Supply and its attached and subordinate offices from (c) Information is not available. 1st April, 1958 to 31st October, 1958 (d) The following steps have been was Rs. 1,77,000 approximately. Of taken:— this, the value of coir products was about Rs. 5,000. (1) the East India Jute and Hessian Exchange operating futures Exports of Automobiles trading have fixed heavy mar- *375. Shri Keshava: Will the Minis- gins in case prices go down ter of Commerce and Industry be below certain levels; pleased to state: (ii) the Indian Jute Mills Associa- (a) whether it is a fact that the tion have re-affirmed their Indian Automobile Industry has intention to stick to floor prices entered the export market; and fixed for hessian and sacking (b) if so, to which country does it in February 1958 and have export its cars and since when? also advised mills to buy jute upto three months’ require- The Minister of Industry (Shri ments quickly; and Manubhai Shah): (a) and (b). There have been no significant commercial (iii) imports of raw jute from exports of cars. Pakistan have been consider- ably curtailed. Raw Jnte Further measures are under con- *376. Shri Tridlb Knmar Chaudhuri: sideration. Will the Minister of Commerce and Industry be pleased to state: Export of Articles (a) whether it is a fact that there *377. Shri Damani: Will the Minis- has been an abnormal and sudden fall ter of Commerce and Industry be in the price of raw jute in all jute markets in West Bengal since the first pleased to state: week of October 1958; (a) whether there has been an {ifT in n Wu{ mTIRi HWm 9 W Violation of Air Space by a Pakistan Aircraft WW nH f : •S81. Shri Balder: Will the Prime Minister be pleased to state: (a) whether Government is aware of the fact that a red-coloured Pakis- tan plane, marked AFJ flew illegally T O SWT %•* # over Hili (India) three times on the 16th October and dropped some hand- * 8 7 % wm# s * t bills containing the proclamation of «hrf % fir# tpf jfarcT Martial law; and flftrfir wrfar t o ^ rn r % % n (b) if so, steps taken by Govern- w t | ? ment? 3079 Written A n sictrt 29 NOVEMBER 1998 Written Annaert JSUb* Ik e Deputy Minister o f External The Parliamentary Secretary to the Affairs (Shrimati Ijitatol Menon): Minister of External Affairs (Shri (a) Government are aware that a red Sadath All Khan): (a) and (b). Mem- coloured Pakistan plane marked “AP” bers of the Commission are elected in flew over Hili Bandar from South to their individual capacity and not as North and returned by the same route representatives of countries. Shri on October 16, 1958, dropping leaflets Radha Binod Pal of India was elected containing the proclamation of martial as a member of this Commission and law. he took part in the 211th meeting. (b) This violation of Indian air (c) and (d). There were some space by a Pakistan aircraft has been general exchange of views on the sub- brought to the notice of the Govern* ject of “ statelessness” but no decisions ment of Pakistan who have been asked were arrived at. to ensure that such incidents do not recur. Foreign Arbitral Awards Tea Mission to Ireland •382. Shrimati Mafida Ahmed: Will •394. Shri V. C. Shukla: Will the the Minister of Commerce and Indus- Minister of Commerce and Industry try be pleased to state: be pleased to state whether it is a (a) whether it is a fact that an fact that Government are considering Indian Tea Mission visited Ireland the question of ratification of the con- vention on the recognition and enforce- during October, 1958; and ment of Foreign Arbitral Awards? (b) if so. the purpose of the visit and its result? The Deputy Minister of Commerce The Deputy Minister of Commerce and Industry (Shri Satish Chandra): and Industry (Shri Satish Chandra): Yes, Sir. (a) Yes, Sir. I T a t l i m l f (b) The purpose of the visit of the delegation was to establish personal / Shri Vajpayee: contacts with importers of tea in 3K> \Shri U. L. Patll: Ireland, to study the possibilities of the Irish tea market and methods for increasing the sale of Indian tea in Will the Prime Minister be pleased that country. Government are await- to state: ing the report of the Delegation. (a) whether it is a fact that Pakistan International Law Commission has asked its representative in the United Nations to draw the attention of the Security Council to the situa- •383. Shri N. R. Munlsamy: Will the tion in Kashmir “created by Sheikh Prime Minister be pleased to state: Abdullah’s trial” ; and (a) whether India was represented at the 211th meeting of the Inter- (b) if so, India’s reaction to this national Law Commission; move? (b) if so, the names of the Members The Parliamentary Secretary to the of Indian delegation; Minister of External Affairs (Shri Sadath A ll Khan): (a) The Permanent (c) whether the question of state- Representative of Pakistan at the lessness of individuals in some coun- United Nations addressed a letter to tries was discussed; and the President of the Security Council (d) if so. the decision arrived at in on November 10, 1958 about Sheikh regard to that aspect? Abdullah’s triaL 208x Written Answers 29 NOVEMBER 1488 Written A n sw ers (b ) A reply is being sent to the Federal Minister of Economies and President of the Security Council Deputy Prime Minister Dr Ludwig through our Permanent Representa- Erhard for increasing exports from tive at the United Nations, and a copy India to West Germany; and will be placed on the Table of the (b) the result thereof? House in due course. The Deputy Minister of Commerce Employment Bureau at Delhi and Industry (Shri Satish Chandra): University (a) and (b) The Minister of Com- merce and Industry did have a discus- fS h ri D. C. Sbarma: sion with Dr Ludwig Erhard during \ 8hri Ram Krishan: the letter's recent visit to India. The Will the Minister of Labour and discussions generally covered certain Employment be pleased to refer to aspects of trade relations between the reply given to Starred Question India and West Germany including No 928 on the 4th September, 1958 the question of increasing the quantum and state the further progress made m of exports from India to West Germany regard to the starting of an employ- of such items as Tea, Coffee, Coir pro- ment bureau at Delhi University7 ducts etc Specific proposals for step- ping up India’s export to West Germany arc being pursued through The Deputy Minister of Labour official channels and it is proposed (Shri Abid Ali): Formal proposals shortly to set up an Indian Govern- have been received from Delhi ment establishment m West Germany Administration and are under con- to pursue export promotional efforts sideration by Government Spindles and Automatic Looms Cotton Fabrics *389. Shri Morarka: Will the Minis- J 8hri Subodh Hansda: ter of Commerce and Industry be \ B h ri S. C. Samanta: pleased to state Will the Minister of Commerce and (a) the number of spindles and Industry be pleased to state automatic looms actually installed so fai out of the 2 1 million spindles and (a) whether it is a fact that Gov- 18 000 automatic looms as contem- ernment have decided to license estab- plated in the Plan, lishments which process cotton fabrics (b) the reasons for not installing by means of power, and this capacity fully, and (b) if so, when this will be put to (c) the names of parties who have operation7 defaulted m utilising licences9 The Deputy Minister of Commerce The Minister of Industry (Shri and Industry (Shri Satish Chandra): Manubhai Shah): (a) to (c) A state- (a) and (b) Yes, Sir The processing ment is laid on the Table of the Lok of Cotton Fabrics has been brought Sabha under the Industries (Development and Regulation) Act, 1951, with effect from 1st March 1957 S tatem en t (a) As on 30 9 58, 0 982 million Trade with West Germany spindles had been installed The f Shri Ram Krishan: scheme for 18,000 automatic looms for ^ Shrl Raghunath Singh: export has not made any progress due to several reasons. Will the Minister of Commerce and Industry be pleased to state* (b ) Difficulties militating against installation of spindles and automatic (a) whether any talks were held looms to the full extent are reported recently between him and the German mainly due to:—> 2083 Written A nsw ers 28 NOVEMBER 1958 Written A n sw ers 20&4 (1) Shortage of foreign ex- appeared in the press, but Govern- change for import of textile ment have no reliable iftformation. machinery, (b) Until more definite information (2) Procurement of building is available, Government would not materials, iron, steel, etc. lifce to express any opinion. (3) Weak financial position of ftw ft h ifwflf * f«W[ licensee mills; (4) Difficult conditions for penal excise for this scheme; and *pft (5) General market conditions. STTifa?r TOT TOIT % OTT In case of automatic looms, the addi- # *r$ $*rr f a tional difficulties have been with res- ft * - _ £ -A V - A pect to the following conditions for Rwi wrc raw amtr w- export of cloth:— *Tfoff ^ (i) The liability of the mills to export 87}% of their past exports «r (b ) if so, whether Government con- setting up fertilizer factory at Nangal template setting up an enquiry Com- in Punjab; mittee to investigate into the working o f ttteae textile mills? (b) the number of those who sought employment in the Nangal Fertilizer The Minister el Cmameree mud In- factory; and dustry (Shrl Lai Bahadur Shastri): (c) the number of those who were (a) and (b). It has come to the notice actually employed? of the Government that two Cotton Textile mills in Punjab have not been The Minister ef Commerce and In- working satisfactorily. Out of these, dustry (Shrl Lai Bahadur Shastri): one mill with a spindleage of 4648 (a) No one has as yet been evicted being uneconomic had stopped work- from his homestead or his shop ing since 9.6.1958. A committee was although evictions from agricultural set up under the Industries (Develop- lands have taken place. The number ment and Regulation) Act, 1951 to in- of persons affected by the latter is vestigate into the affairs of the other 2883. As regards evictions from home- mill, and certain remedial measures steads and shops a total number of were suggested in this case. 731 families and 240 shopkeepers will bo affected in the future and for all Textile Mills purposes the persons who will be so 585. Shri B. M. Banerjee: W ill the affected are being treated as evictees Minister of Commerce and Industry even now. The acquisition of land be pleased to state: for the Nangal Fertilizer factory has in all cases been made on payment of (a) the number of Textile Mills fair and legal compensation according which remained totally closed on the to the Punjab Government’s award A 1st October, 1958; scheme has also been formulated by the State Government for the resettle- (b) the number of those Mills where ment of the evictees by giving them some shifts have been closed; and Alternative lands at cost m an area (c) the total number of workers of 145 acres of land already acquired laid off and retrenched as a result of for this purpose The Nangal Com- closures? pany is helping in the implementa- tion of this scheme both financially The Minister of Commerce and In- and otherwise. dustry (Shri Lai Bahadur Shastri): (a) As on 1.10 58, forty cotton textile (b) About 3500 applications seeking mills were totally closed. employment in the projoct have been (b) On the same date, twenty seven received from the persons affected cotton textile mills were partially closed. (c) 335. (c) Separate figures for workers laid off and workers retrenched are Export Promotion Advisory Commit- not available. However, as a result tees of these closures, 65,263 workers were affected. 537. Shrl Ram Krishan: Will the Minister of Commerce and Induitry be pleased to state the names of the Farttllsar Factory in Nangal goods for which Export Promotion Advisory Committees have been set 538. Shrl Ram Krishan: Will the up so far? Minister of Commeroe and Industry be pleased to state: The Minister ef Commerce and In- dustry (Shri Lai Bahadur Shastri): (a) the number of persons evicted Export Promotion advisory Commit- from their homestead and lands for tees have been set up at the three 0B7 Written A n sw ers 39 NOVEMBER 1958 Written A n sw ers 3008 author ports far th* purpose of under- years 1956, 1997 and 1|S9 a n as taking a detailed study of export follows: potentialities of various commodities in their respective regions and to re- commend specific steps for exploiting Himachal Punjab Jammu these potentialities. T h ere are, how- Year Pradesh ar.d Kashmir ever, Export Promotion Councils (11 in all) which have been set up for the following specific commodities:— Mds. Mds. Mds. 80,000 4*000 25>COO Cotton Textiles, Silk & Rayon, 1956 *957 68,300 3M00 21,300 Engineering, Plastics, Cashew & *95* • 69,000 25.000 2X^000 Pepper, Tobacco. Leather, Chemi- cals & Allied Products, Sports Goods, Mica and Shellac. (d) the cost o f production o f Guma Rock Salt is not worked out separate- ly. Information regarding cost of Gama Rock Salt production of Mandi rock salt and its 538. Shri Hem Raj: Will the Minis- selling price is given below: ter of Commerce aad Industry be pleased to state: Year Cost of Pro- Selling Price (a) the quantity of Gama Rock Salt ducdon produced in the years 1956, 1057 and 1958; *955-56 • R*. 1- 13-4*94 Rs. 1- 12-6 (b) the agency through which it is (excluding distributed and the names o f the SahGets) States to which it is distributed; 1956-57 • R*. 3- 1-7 ‘32 -do- *957*58 ■ Not yet known -do- (c) the quota fixed for each State; and Central Warisfaaaa to O rtas (d) the cost price of its production tnd its selling price? 5S9. Shri r. K. Deo: Win the Minis- ter of Planning be pleased to state: The Minister of Commerce and In- dustry (Shri Lai Bahadur Shastri): (a) whether there has been any curtailment in the allotment of Cen- Mds. tral assistance for implementation of (a) I9S6 .... 17,860 the annual plan a t the State a t Orissa 1957 .... 12,380 for the year 1968-59 under the 1958 (upto the end of Octo- Second Five Tear Plan from what had ber, 1958) . 6.710JI already been allotted thereto; and (b) Rock Salt from Mandi (Gum., (b) if so, the exact position in this and Drang Mines) is supplied to tra- regard? ders in the Gurdaspur District o f the Punjab and to Banjaras, direct by the The Depaty MhiWw a t Planning Salt Department. Supplies to Hima- (Shri S. N. Mishca): (a) aad (b). For chal Pradesh, Kangra District of the Orissa, as ter other States, outlays are Punjab and Jammu and Kashmir determined each year on the basin a t are made only through the nominees annual plans. In working out annual of the State Governments. plan outlays, the provision ta r the five year period Is one o f the main (c) No separate quota for distribu- factors taken into cemaMeraMon, o tte r tion from Guma to the State Gov- factors being performance. eomarit- ernments has been fixed. Quota a t ments, State resourcaa «tc. Tttare has Mandi rock salt (Guma and Drang) been bo curtailment a t the plan out- Allocated to various Statea dusting the lay o f Rs. 16 tsores i f M i ta r Orissa ic * 9 Written Answers 29 NOVEM0XR 1038 Written Answers 3090 ' during UNty-59, of which Central as- ly helped by the Central Government sistance represented Ra. 12*8 crores. under the various housing schemes in Recently a further sum of Rs. 88 various Union Territories during lakhs has been made available as as- the current year; and sistance for irrigation schemes. (b) the number of members in each Steel Requirements o f Orissa Society who belong to Scheduled Castes? 540. Shri P .K . Deo: W ill the Minis- ter of Commerce and Industry be The Deputy Minister of Works, pleased to state: Housing and 8upply (Shrl Anil K. Chanda): (a) and (b). Out of the five (1) associated with each Minis* Districts in Vidarbha but the same has try (Ministry-wise); not beux sanctioned so fir as some details are being awaited from the (u) number of temporary State Government. visitor-consultants at the instance of ministries, and Ambar Charkha (ui) roving foreign experts and 546. Shri Paagarkar: Will the consultants who visited India on Minister of Commerce and Industry their own initiative and offered be pleased to state the number at their advice to Government? Charkhas distributed m the Centres of Ambar Charkha in Bombay durmg The Prime Minister and Minister of 1957-58 and 1958-59 so far? External Affairs (Shri Jawaharlal Nehru): (i), (u) and (m) The in- The Minister of Commerce and In- formation is being collected and will dustry (Shri Lai Bahadur Shastri): be placed on the Table of the House 8,080 Ambar Charkhas were distribut- ed durmg 1957-58 and 2,250 dunng 1958-59 according to reports received Cottage industry upto 16 111958 545 Shri Paagarkar: Will the Minis- ter of Commerce and Industry be pleased to state the amount sanctioned vl*vs. fmr «n»i . *un gifirau to the Bombay Government for the ?r«n srarto ^ van# f t t *3$ development of Cottage Industries m Bombay dunng 1958-59 so far’ fa : The Minister of Commerce and In- («p ) firfw dustry (Shri Lai Bahadur Shastri): The following amounts have been sanctioned during 1958-59, so far, for fa* fWft-facrft Tiftrar t ’Tiff; the development ot cottage industries to the State Government of Bombay - (w ) wsppit ’ F'ff % * * # facpft-ft^ft ft ipfif; tftx Name of Industry Amour t sane* («r) f t S uoncd (Rs. in lakhs) v ifo v TTflrr *r*; ( *: srrer r. Handloom . 14*84 *jn$r srraft) : (* ) irtr (w) ^ 2. Handicrafts . 1*84 «*r-*rc5r q r t o fan «ptt 11 3 Village Industries 18 09 [iftri Nm Im t Tests in Tnwhnehig A m i voting was four in favour (Burma, India, USSB and United Arab Repub- M9. 8hri*D. C. S u m : Will the lic); seven against (Australia, Bel- Prime Minister be pleated to itatt: gium, “China", France, Italy, UJC and (a) whether the Trusteeship Council the USA> and two abstentions (Oaute- of the United Nations have expressed malft and Haiti). The New Zealand their views with regard to the su s- representative did not participate in pension of nuclear testa in the Trus- the voting because he had not receiv- teeship areas; and ed appropriate instructions from his government (b) if so, the nature ot their report? The Prime Minister and Minister of (b) No report was made by the External Affairs (Shri Jawaharlal Trusteeship Council specifically on Nehru): (a) The 22nd session (October the question of nuclear tests in Trust 1958) of the Trusteeship Council con- Territories. The Trusteeship Council sidered the question regarding the in its report to the Security Council conduct Of Nuclear and Thermo- on the Trust Territory of the Pacific Nuclear tests in or in the proximity Inlands, merely stated the facts men- of Trust Territories. Two draft resolu- tioned in respect of part (a) above. tions were submitted to the Council. MasUa Shriaee la Panjab The first of these, submitted by the 559. Shri D. C. Sharma: Will the representative of title USSR, would re- Prime Minister be pleased to state: commend to the Government of the USA that it should discontinue nuclear (a) the number of muslim shrines weapons tests in the Trust Territory m Panjab in respect of which com- of the Paoific Islands. It would also plaints for the violation of their recommend that USA should restore sanctity were received by the Gov- to the indigenous inhabitants of the ernment of India in 1958, 1957 and Trust Territory all their rights to the 1958 (upto the 30th November, 1958); Islands of which they had been de- and prived by the US authorities, that it should take the necessary measures to (b) if so, the action taken thereon? remove the danger to which these in- The Prime Minister and Minister of habitants were exposed by the hold- External Affairs (Shri Jawaharlal ing of nuclear tests in their territory, and that it should compensate the Nehru): (a) There were 27 complaints indigenous population of the Trust —11 in 1956; 10 in 1957 and 6 in 1958. Territory for the material damage (b) These were referred to the caused. Government of Punjab for necessary The second draft resolution submit- action by the local authorities Of ted by the representative of India these 12 complaints have been finally would request the Administering disposed of. Authorities of Trust Territories not to UJN. Observer Group in Lebanon conduct nuclear and thermo-nuclear tests in or in the proximity to any 851. Start D. C. Sharma: Will the Trust Territory. M m Minister be pleased to state: I t e two draft resolutions were con- (a) whether it is a fact that the sidered hy the Council during the U.N. Observer Group in the Lebanon examination of conditions in the Trust in its fourth report presented to the Territory the Pacific Islands. The Security Council requested for an Representative of the USSR withdrew immediate increase in the number of his draft resolution. The Indian re- its ground observers in order to solution was voted upon and was lost operate at maximum efficiency; as it could not obtain the necessary (b) whether (he Security Council Majority of the votes cast The have examined this r«art; aad 3095 Written Anatom 2ft NOVEMBER 1088 Written Answer* 3096 (c) if (0, their reactions thereto? Deveiopatent of b ttya U f. The Prime Minister and Minister of s„ /Start Sangaana: External Affairs (Shri Jawaharlal \8hri Khnshwaqt Rai: Nehru): (a) The U.N. Observer Group m the Lebanon issued a Press com- Will the Minister at Planning be munique on the 18th September, 1958, pleased to state: calling for an increase in the number (a) whether any scheme for the of Observers; the reasons for the development of Eastern U.P. has been request were elaborated tn the Groups drawn up and implemented; and Fourth Report. (b) if so, the details of the develop- (b) and (c). There has been no ment programme? discussion of the Report by the Security Council but acting on the The Deputy Minister of Planning recommendation of the Observer (Shri S. N. Mishra): (a) and (b) The Group the Secretary General of the subject is under discussion with the United Nations requested the coun- State Government tries participating in the Group to send more observers; all the countries New Algerian Government concerned complied, India sending 50 'Shri Sangaana: mare officers. Shri Shree Narayan Daas: The Observer Group have recom- Shri Kaaneshwar Taatia: mended in their latest report to the Shri Kodiyan: Secretary General that the activities Shri H. N. Mnkerjeo: of the Group should be wound up and Shri Mohanuned Elias: already some of our military person- Shri Tridib »■«..«• ^ : nel have left for home Cbaudhari: Shri Warior: Industrial Relations 554. -I Shri Vaaadevan Nalr: Shri N. &. Mnnisamy: 552. ShriRam Krishan: Will the Shrl Muhammed Imam: Minister of* Labour and Employment Shri Jadhav: be pleased to state: Shri V. C. Shnkla: Shrl Vajpayee: (a) whether it is a fact that Gov- Shri U. L. Patti: ernment propose to undertake plan- Shri Achar: ned studies on the working of impor- Shri P&nigrahi: tant statutes governing Industrial re- Shri Heat Baroa: lations; and Will the Prime Minister be pleased to state: (b) if so, the nature and names of the statutes which are being studied (a) whether any formal request has and scrutinized? been made to Government by the New Algerian Government for Its re- The Deputy Minister ef Labour cognition; and (Shri Abid All): (a) Yes. (b) if so, the reaction of Govern- (b) Proposals to study the working ment of India? of certain labour enactments like the Industrial Disputes Act, Employees’ The Prime Minister and lw»Wnr of Provident Funds Act, Minimum Wages External Affairs (Shri Jawaharlal Act, etc., were approved by the Cen- Nehra): (a) A request to this affect tral Implementation and Evaluation was received through the Embassy of Committee at its first meeting held on India, Cairo. September 20, 1958 The question of taking up these studies is under con- (b) Hie Government of India did sideration. not consider it appropriate to gjm 2097 Written Antto ers 29 NOVEMBER 1986 Wrftt*f» Ansvoert 2098 formal recognition at this stage. Gov- (w ) wr % tW ^ ernment are, as is well known, in Algeria to self-determination and farm * wfrfr wrclfaw fwpnr independence. These views have vN ’ vstnw inAirpftwWvtfhEnf been expressed repeatedly at the ntwwn* « Technical Training Institute at Okhla W ifi I vnrjtar Jruffant 555. Shri Bahadur Singh: Will the Minister of Commerce and Industry m*. l w : mrr Tfisrw be pleased to state the estimated ipft m fqr httiomtA Y»Vte\y be spen'i on Vne buildings and workshops of Indo-Ger- ft? : man Prototype Workshop and Train- ing Centre, Okhla (New Delhi)? (*) fa&ff $f ffo ton «n: pruft ^rrofhr sr*?rfw The Minister of Commerce and In- dustry (Shri Lai Bahadur Shastri): (m ) *rcvrc cr: P r r t « w The estimated cost of buildings on the basis of plans recently finalised is VTcft- $; being worked out. The cost of land and buildings is likely to be of the ( * ) ^ «w 5PF WHfr JR- order of Rs. 30 lakhs. sifciff % *rfgrfr|KT fSgersfl' tftr w ift q i sprrf *r*ft ; TTT^rTJR (? ) Vi W^TlUl ff o ff o «rc *nflr ? : «RT tnf«TW *rf«rwr w t »faft («ft wra swta *bft pt t w?Tft : («p ) q * fo rm ot t f t : (w ) ^«F fkwrw ^RT (w) farcw sht *rw qr tw People have been printed and distri- buted to all secondary schttols. These 3 Awt *rt i trft tas , Pamphlets and other occupational in- V't] formation has been made available to young people at all Employment Ex- Employment Exchanges changes. The programme is proceed- 558. Shri Ram Krishan: Will the ing according to Plan. Minister of Labour and Employment (4) Occupational Research and be pleased to state: Analysis. A great need has been felt (a) whether Government is consi- for more careful definition of occupa- dering a scheme to improve the ser- tions not only for sound statistical vice by Employment Exchanges; and analysis but also to provide essential (b) if so, the stage at which the information to those engaged in Voca- scheme stands? tional Guidance activity. A National Occupational Dictionary is being pre- The Deputy Minister of Labour pared. The code structure of this (Shri Abid All): (a) and (b). Yes. document, approved by various statis- There are four main parts of the tical and other authorities has been improvement programme; viz (1) An completed. Three thousand brief expansion of the Employment Service definitions are being finalised and a from 135 exchanges at the commence- thousand have been completed and ment of the Second Five Year Plan Printed. Work on detailed job analysis to about 280 exchanges by the end of atid definitions is proceeding and the the Second Plan. This is to make the Programme is proceeding according Service more accessible to the public tt> Plan. and to provide, in course of time, at least one Employment Exchange in Incentives to Exporters each district, as recommended by the Shiva Rao Committee. (2) The col- r Shri Ram Krishan: lection of employment market infor- 559. < Shri Daman!: mation through which all concerned [S h ri N. R. Muntsamy: with planning will be in a better posi- tion to advise on future manpower Will the Minister of Commerce and requirements and to some extent as- Industry be pleased to refer to the sess the impact on employment of the reply given to Unstarred Question Five Year Plans. The collection will No. 966 on 27th August, 1958 and caver all establishments in the public state: sector and the most significant areas and establishments in the private (a) whether it is a fact that the Government have since examined sector. Most of the preliminary ar- rangements for this programme are proposals for extending a number of completed and information is being special incentives to exporters with assembled. a view to checking the shrinking world demand for some of the India's tradi- (3) The development of vocational tional items of export; guidance. This scheme is intended to help young people in the wise choice (b) if so, the nature at incentives of careers related to the requirements Examined; and of the employment market The pro- (c) action taken in pursuance there- gramme is being worked out in col- of? laboration with educational autho- rities at the Centre and the States. The Minister of Commerce and In- Eight Units out of 53 have been dustry (Shri Lai Bahadur Shastri): opened and some officers and staff (a) Yes, Sir. have been trained for this work. 50 career pamphlets describing the tvpes (b) and (c). A statement showing of openings available to our young the nature of incentives examined ai and action taken h placed on the (b) Reaction* from the public have Table of the Lok Sabha. [Sec Ap- been more or less uniformly favour- pendix n, annexure No. 48.] able. HaMe In tn of Weights and industrial Output and National H m h w XnoooM SM. Sim 8. M. Banerjee* Will the 561. Shri ftaghunath Singh: Will Minister of Commerce and ladu br the Minister of Planning be pleased be pisesed to state: to state the increase in Industrial output and national income In India (a) what steps have been taken to up-to-date te., during the Second Fivs popularise the Metric System in the Year Plan over First Five Year Plan? country specially in rural areas; and The Deputy Minister el Planning (b) the reaction of the general (Shri s. N. Mlshra): The index of people? industrial production (base: 1951) was 122.1 for 1955. It increased to 132*6 Hie Minister of Commerce and U»- in 1956 and to 1S7.S in 1957. Thus dustrv (Shrl Lai Bahadur Shastri): as compared to 1955, the index for (a) A documentary film with com- 1956 was higher by 9*6 per rent, and mentaries in English and all the re- that for 1957 by 12.4 per cent. gional languages, and a cinema slide, were shown in cinema houses National income (at 1948-49 prices) was Rs. 10,480 crores in 1955-56. In throughout the country. Copies of 1956-57, it increased to Rs. 11,010 the documentary film have been sup- plied to State Governments for being crores—an increase ol 5*1 per cent. shown in schools, at information Labourers In Mines of Orissa Centres and Community Development Blocks. Talks have been broadcast 562. Shrl Damanl: Will the Minis- in English and the Indian languages. ter of Labour and Employment be A number of advertisements have pleased to lay a statement on the been published in newspapers and Table showing total number of periodicals in English and the regional labourers employed in Iron-ore, languages. Special articles have Manganese-ore and Chromite M;nes been and are continuing to be publish- of Orissa during 1954-55, 1955-56, ed in the Press in all the language*. 1956-57 and 1957-58? Manv of the leading newspapers published sunnlementg to commemor- The Deputy Minister of Labour ate the introduction of the me*ric sys- (Shrl Abid All): Statistics in regard tem on the 1st October. 195#. De- to the number of persons employed monstration we'ghts have been sup- in mines are collected calendar year- plied to State Governments for beinrr wise. A statement giving information exhibited at Comm unitv Development for the years 1954 to 1957 is given BlonVi. Talking points have been below:— sunnlied for the use of Village Level Workers. Co«i“s of a poster and a Daily average number of persons descriptive folder have been widelv employed in: distributed. A pamphlet on the metric system in English and the re- Year Iron-* re Msnga- Chro- gional languages has been publi«hed. mines new mite A Journal devoted to the subject is mines mines being on*Ms»>*d ewrv alternative month in English and Hindi. Metric Weights. Measures, and Weighting in- Z954 • 12.006 M .007 466 struments, have been exhibited at a 195* • M>W7 *7-875 i.* ” Stall at the "India—1958” Exhibition. T9S6 . iv fio o 17.701 1,671 6 90 1.703 Delhi. 1957 • I5.684 I .I 2X03 Written Answers 21 NOVEMBER 1958 Written Anwin aiQ4 S h n Chanan la Orissa export duties with a view jo enabling our teas to compete affectively in set. Shri Panlgrahl: m il the Minis- World markets. ter of Works, Housing and Boyvly be pleased to state: (c) It is estimated that 268 million (a) how many slum clearance lbs of tea have been exported from schemes have been sanctioned for the period April to October, 1958. Orissa State during the Second Plan (d) U.K., Eire, U.S.SH, Nether- period; and lands, Turkey, Iran, Egypt, U.S.A.. (b) what is the progress ot these Canada, Australia and Sudan. schemes in Orissa so far? The Depnty Minister of Works, Expert of Coffee Honsing and Supply (Shri Anil K. 565. Shri Ram Krishan: Will the Chanda): (a) One slum clearance Minister of Commerce and Industry project for the construction of SO be pleased to state: tenements at an estimated cost of Rs. 99,000 was approved in February, (a) whether it is a fact that coffee 1958. is a promising item of export and there is good demand for it; (b) The Orissa Government advis- fb) if so, the nature of steps taken ed in October, 1958 that the tene- to increase its export; ments were almost complete except for some sanitary fittings etc. which (c) the total quantity of coffee ex- were likely to be provided shortly. ported during the current financial year so far; and ■sport of Tea (d) the names of the principal ex- porting countries? f Shri Ram Krishan: \ Shri Daljlt Singh: lh e Minister of Commerce and In- dustry (Shri Lai Bahadnr Shastri): Will the Minister ot Commerce and (a) Yes, Sir. Industry be pleased to state: (b) Our coffee forms only a small (a) whether it is a fact that there part of world's coffee exports, and is good scope for export of tea; thus the Indian coffee industry has had to depend largely on a stable (b) if so, the nature of steps taken internal market As a matter of to increase its export; policy, therefore, only quantities of coffee surplus to the minimum re- (c) the total quantity of tea ex- quirement of internal consumption ported during the current financial are set apart for export out of each year; and season’s crop. Such available sur- plus is normally exported before (d) the names o t principal tea the arrival and sale of the new year's consuming countries? crop. Hie possibility of exporting more coffee is constantly under re- The Mlntater of Commerce and In- view and as much quality coffee as dustry (Shri Lai Bahadur Shastri): possible has been released for export (a) Yes, Sir. this year. (b) In addition to general publicity measures and participation in foreign (c) 7.700 tons txpto August, 19S8. exhibitions. Government have recent- Information for subsequent period is ly announced relief in excise and not available. aro5 Written Answers 29 NOVEMBER 1*58 Written A nsw tn SIC4 (d) The following are the principal of the view that the nationality of coffee exporting countries:— Mr. Abdul Ali, who underwent trial Angola, Brazil, Belgium-Congo, in his court is "almost certainly Costa Rica, Colombia, Indian" and consequently ordered bis return to India; and Ecquador, El Salvador, Guatemala, Haiti, Indonesia, (b) what has the Indian High Com- Kenya, Mexico, Tanganyika, missioner done in this respect? Uganda, Dominican Republic, The Prime Minister and Minister of Nicaragua, Venezuela, Mada- External Affairs (Shri Jawaharlal gascar, Ethipia, French West Nehru): (a) No. Shri Abdul All’s Africa. Brazil is the chief national status has yet to be deter- producing and exporting mined. In accordance with the U.K. country to the world mar- Merchant Shipping Act, the court has kets. however, ordered his return to the Safety Measures In Mines custody of the Master of S.S. “Blair- cova” for return to Calcutta from 566 Shrl Ram Krishan: Will the where he had stowed away. Minister of Labour and Employment be pieaseel r e fe r the repfy given (b) The question of Shri Abdul to to Ali’s nationality is being investigated. to Unstared Question No. 1227 on the 1st September, 1958 and state: National Tribunal (a) whether the conference to dis- 569. Shrl Ram Krishan: Will the cuss safety measures in mines has Minister of Labour and Employment reached final decisions; and be pleased to state: (b) if so, the nature thereof? (a) whether it is a fact that Gov- ernment have decided to set up a The Deputy Minister of Labour national tribunal for settling disputes (Shri Abid All): (a) No. of an all India character between the employees and employers with regard (b) Does not arise. to service conditions; and Housing Scheme for Coal Miners (b) if so, by what time the above 567. Shrl Rajendra Singh: Will tribunal will be set up? the Minister of Labour and Employ- The Deputy Minister of Labour ment be pleased to state: (Shrl Abid Ali): (a) and (b). Pro- vision exists in section 10(IA) of the (a) whether there has been shortfall Industrial Disputes Act, 1947, for in the fulfilment of the target of constitution of a National Tribunal housing scheme for the coal miners; for adjudicating a dispute involving (b) if so, to what extent; and any question of national importance or (c) the reasons therefor? of such a nature that industrial establishments situated in more than The Deputy Minister of Labour one State are likely to be interested (Shrl Abid All): (a) No target with in, or affected by, such dispute. No reference to a particular year wa3 standing National Tribunal has fixed. been constituted, but ad hoc ones sre set up, as and when necessary. (b) and (c). Do not arise. Mr. Abdul All Amendment of Indian Trade Union Act 568. Shri Rajendra S'ngh: Will the 570. Shrl Run Krishan: Will the Prime Minister be pleased to state: Minister of Labour and Employment (a) whether it is a fact that a be pleased to state: Sheriff in Edinburg "on Judging by (a) whether it is a fact that Gov- his Abdul Ali-story and history" is ernment propose to amend Indian ■2107 Written A Misers 28 NOVEMBER 1958 Written Answers 21 Trade Union Act, with a view to dis- (a) No, Sir. Water coolers ace manu- courage and eliminate the formation factured in India. ■of bogus unions; and (b) Does not arise (b) i t b o , the nature ol the amenrt- ments contemplated? (c) None, as the import of com- plete water coolers is banned. The Deputy Minister at Labour (Shri Abtd All): (a) and (b). Tbr (d) Does not arise. following amendments to the Indi&i Aid to Foreign Countries Trade Unions Act, 1926, recommend- ed by the 16th session of the Indian 572. Shri N. R. Monlsamy: Witt labour Conference held in May, 1958 the Prime Minister be pleased to -are under the consideration of Gov- state: ernment:— (a) the nature of aid India has i(i') If any signatory to an appli- promised for development works in cation for registration is dis- Sikkim, Nepal, Tibet and Burma; and charged during the pendency (b) the terms and the value of such of the application and if the aid? signatories were entitled to apply for registration at the The Prime Minister and Minister at time of application, registr- External Affairs (Shri JawaharM ation should not be refused on Nehm): (a) and (b). No aid for de- the ground that they have velopment works has been promised ceased to be workers; to Burma or to the People’s Republic of China for development work in (ii) a membership fee of at Tibet. The required information in. least four annas a month respect of Sikkim and Nepal is given should be prescribed in the below:— rules of a trade union; and Sikkim < iii) the Registrar, or his nomi- nee, should have the powci I. An aid of Rs. 307 lakhs to cover the entire expenditure of Sikkim’s to inspect the books o t a trade union. Seven Year Development Plan, which commenced in 1956. Water Coolers II. A loan of Rs. 22 lakhs for the construction of an aerial ropeway, re- 571. Shri Ram Krishan: Will the payable in 15 equal instalments. In- Minister of Commerce and Industry terest will be charged at 4 per cent be pleased to state: per annum and the first instalment of (a) whether it is a fact that water repayment will begin one year after coqlers are not manufactured in the completion of work. India; Nepal• (b) if s>o, the steps taken cr pro- Rs. 10 crores for a period of 5 posed to be taken to product? water years ending 31-3-1961 in the shape of coolers in India; cash grants as well as contribution to- wards the cost of development (c) the number of water coolers schemes. imported during this year so far, .and ^ M ed iu m Industrial Estate (d) the valuue of Foreign Exchange 573. Shri E. Madhnsndhan Mm: spent on them? Will the Minister of Commerce and Industry be pleased to state: A c Minister at Commerce and In- (a) whether it has been decided to <8aatry (Shri Lai Bahadar Shastri): set up a Medium Industrial Estate 254(Ai) LSD.—4. 2X09 Written Answers 29 NOVEMBER IMS Written Answers 2110 in Warangal 'at a cost of Rs. 10 number of production centres set up lakhs; and for traditional Khadi in addition to 2,138 production centres set up unde* (b) if so, the main features there- the Ambar Charkha Programme. The of? Majority of the latter centres arc The Minister of Commerce and composite centres doing both spinning Industry (Shri Lai Bahadur Shastri): and weaving and hence it is not (a) The Andhra Pradesh Government possible to state the exact number of have submitted to the Central Gov- centres engaged exclusively on weav- ernment a proposal tor the establish- ing ambar yam. ment of an Industrial Estate in Warangal at a cost of about Rs. 10 Tribemi Canal lakhs. The proposal is under con- 878. Shrl Nagl Reddy: Will the sideration. Minister of Planning be pleased to (b) The Estate is proposed to be state: built in an area of 10 acres. The cost of land and development is esti- (a) whether it is a fact that the Planning Commission has undertaken mated to be Rs. 70,000, cost of factory buildings Rs. 6 lakhs and intensive survey of Tribeni Canal, Bihar, to evaluate the benefits accru- cost of administrative block canteen and other ancillary services ing from it; and Rs. 3,30,000 > (b) whether a copy of the report V will be placed on the Table? Ambar Charkha Scheme The Deputy Minister of Planning ' / 874. Shrl E. Madhnsudhan Rao: (Shri S. N. Mishra): (a) Yes. The Will the Minister of Commerce and Planning Commission through the Industry be pleased to state: Research Programmes Committee have arranged for a study of irriga- (a) what is the progress made m tion benefits of Tribeni Canal, Bihar the Ambar Charkha Scheme so far; (b) This will be considered when (b) how many centres have been the report is ready. opened so far by Government to popularise this scheme; and News Reels (c) how many weaving centres, 876. Shri Wodeyar: Will the Minis- have been opened to utilise the yarn ter of Information and Broadcasting spun? be pleased to state: The Minister of Commerce and (a) in how many languages the Industry (Shri Lai Bahadur Shastri): news reels of the Government of (a) A statement containing the re- India are being produced; and quired information is placed on the Table of the Lok Sabha. [See Ap- (b) the reasons, if any, for not pendix II, annexure No. 84 ] producing Kannada news reels, (b) The implementation of the though, the documentaries are being scheme has been undertaken through produced in Kannada? various agencies, e.g., institutions The Minister of Information aad certified by the Khadi and Village Broadcasting (Dr. Keskar): (a) Five, Industries Commission, Co-operative namely, Hindi, English, Tamil, Telugu Societies, State Governments, De- velopment Commissioners and State and Bengali. Boards. (b) Production of newsreels in (e) Weaving of Ambar yarn has other regional languages, including undertaken by quite a large Kannada, has not been taken up a m Written 4 n«t0er« 29 NOVEMBER 1958 Written Answers Zil» because of the heavy expenditure, es- (b) 1957—66,042 tons. # pecially the foreign exchange, in- volved on raw film, stores and equip- 1958 (January-August)—34,040 tons. ment It is proposed to take it up (c) The price of indigenous later. caustic soda is not controlled. The price of imported Caustic Soda solid Consumption of Cotton by imported by the State Trading Cor- 577. Shri Ram Krishna: Will the poration has been fixed at Rs. 7JJ0 Minuter of Commerce u d Industry per ton. F.O.R. Port town exclusive be pleased to state: of sales tax and other levies. (a) whether it is a fact that the consumption of cotton by mills in Fertiliser Factory at K in d (Bombay) India during 1957-58 season hBS 579. Shri Jadhav: Will the Minis- fallen; ter of Commerce and Industry be (b) If so, to what extent; and pleased to state: (c) the reasons for the same? (a) whether it is a fact that a Fertilizer Factory is to be started The Minister of Commerce and In- at Karad in the State of Bombay; dustry (Shri Lai Bahadur Shastri): and (a) Yes, Sir. (b) when the work of construction (b) The total consumption of cotton of the factory is to begin? (both Indian and foreign cotton) dur- ing 1957-58 season was 49-99 lakh bales The Minister of Commerce and as against 52-33 lakh bales in 1956- Industry (Shri Lai Bahadur ShastH): 57. There was thus a decline of 2*34 (a) No, Sir. lakh bales in the total consumption. (b) Does not arise. (c) The decline in consumption may Ambar* Charkha be attributed to the fact that the production of coarse and medium j80. Shri Aurobindo Ghosal: Will cloth and yam during 1957-58 was the Minister of Commerce and In- lower than that of the previous year dustry be pleased to state: due to heavy accumulation of stocks (a) what is the net average monthly on account of lower off-take of these income of a whole-time worker from varieties from the mills. Ambar Charkha; and (b) what are the employment po- CausHe Soda tentials of the Ambar Charkha 578. Shri Jadhav: Will the Minister Scheme? ot Commerce and Industry be pleas- ed to state: The Minister of Commerce and In- dustry (Shri Lai Bahadur Shastri): (a) the quantity of caustic soda (a) The average monthly income of produced indigenously per annum; a whole-time spinner is Rs. 19. i.9 .f if he works eight hours a day and (c) the quantity of caustic soda 25 days in the month. imported annually; and (b) Upto the end of September, (c) the sale price fixed by Gov- 1958, about 2,15,000 persons have ernment therefor? been provided full-time or part-time The Minister of Commerce In- employment under the Ambar- dustry (Shri Lai Bahadur Shastri): Charkha Scheme. Hie future em- (a) 1957—42,653 tons. ployment potential of the scheme will depend upon the size of the pro- 1958 (January-September)—41,480 gramme that may be sanctioned tram tons. time to time. Written Answers 29 NOVEMBER 1958 Written Answers 21X4 V o rn Station ef A ll. (d) whether the scheme of the Orissa State is being considered by 681. Shri A m u: Will the Minuter the Union Ministry; and of btfwautton sad Broadcasting be pleased to state: (e) if so, the details of such scheme (a) whether it is a fact that Gov- and the financial help sought for by ernment have taken a decision to the State Government for implement- shift Poona Radio Station to some ing this scheme? other place; and Tbe Deputy Minister of Rehabili- (b) if so, the reasons therefor? tation (Shri P. S. Naskar): (a) No. Hie Minister ef Information and (b) Yes. (Dr. Keskar): (a) Yes. Sir. The proposal is to shift the pre- (c) 107 families. sent studios to a building with more accommodation. (d) and (e). In view of the reply to part (a) of the question, (d) and (b) With the augmentation of vhe (e) do not arise. power of the Poona Station from 1KW to 5 KW MW and increased activities Export of Leather Footwear t f the Station, it has become neces- sary to provide additional office ac- 584. Shri Paagarkar: Will the commodation and augment existing Minister of Commerce and Industry studio and technical facilities. The be pleased to state: present accommodation has become so cramped that the staff has to sit in (a) whether there has been increase crowded rooms and accommodation in the export of leather footwear in for visitors and artistes is practically 1958 in comparison to 1957; and not available. For some time two tents had been hired to house some (b) the names of the countries pf the staff. Hie Government of which have placed fresh orders during Bombay was not willing to give any 1958-59? additional rooms in the present build- ing. The Minister of Commerce and In- dustry (Shri Lai Bahadur Shastri): (a) Figures of exports are available Rehabilitation of Displaced Persons for the period January to August, hi Orissa 1958 only. They show that there has 588. Shri Panigrahi: Will the Min- not been any increase in the export ister of Rehabilitation and Minority of leather footwear, as compared to Affairs be pleased to state* the corresponding period of 1957. (b) U.SS.R. and German Demo (a) whether the Orissa Rehabilita- cratic Republic have placed fresh tion Department has submitted any orders on the State Trading Cor- scheme to the Union Government for poration. Government have no in- rehabilitating East Pakistan displaced formation about orders, if any, that families in a separate township to might have been placed on other be rebuilt near Cuttack; sources of supply. (b) whether displaced families are living in colonies constructed in thi Rubber Industry dty of Cuttack; 585. Shri Paagarkar: Will tbe (c) if so, how many displaced Minister of Commerce and Industry families are settled in Cuttack city be pleased to state the value at im- Itself; ported chemicals required in the Written Answer* 29 NOVEMBER 1998 Written Answers 2116 Rubber industry during 1957-58 and Development Schemes in Kerala. Its 1958-59 so far? final report is expected shqftly. The Minister of Commerce and in- (b) The final report will be placed dustry (Shri Lai Bahadur Shastri): on the Table of the House when re- (Rs. in Lakhs) ceived. 1957-58 450 Approximately 1958-59 163 Approximately Financial Assistance to Bihar (April-August). Sindri Fertilizers and Chemicals 588. Shri Jhnlan Sinha: Will the (Private) Ltd. Minister of Planning be pleased to refer to the reply given to Starred 586. Shri Bose: Will the Minister Question No. 410 on the 24th Febru- of Commerce and Industry be pleased ary, 1958 and state how much of the to state: amount recommended by the team appointed by th? Planning Commis- (a) the total number of workers sion to report on the scarcity condi- employed in Sindri Fertilizers and tions in Bihar, Orissa, Uttar Pradesh Chemicals (Private) Ltd.: and Madhya Pradesh and accepted by (b) the number of workers pro- the Central Government has been vided with quarters; and made actually available to the State Government of Bihar? (c) the scheme, if any, to build further quarters? The Deputy Minister of Planning The Minister of Commerce and in- (Shri S. N. Mishra): In the light of dustry (Shri Lai Bahadur Shastri)' the recommendations made by the (a) 6,776 (excluding daily rated and Team, special consideration was given casual workers). to Bihar in the matter of assistance from the Centre during 1957-58 for (b) 4,751. the Plan as well as under other (c) A scheme for the construction of heads. The assistance sanctioned in- further 1,082 quarters for workers cluded the following:— during this year and next year is in progress. (1) Rs. 16*6 crores on account 0f Plan expenditure of Rs. 29 Committee on Coir Industry crores, the assistance agreed to for the Plan outlay of f Shri Easwara Iyer: Rs. 33 crores being Rs 14 587 \Shri Pangarkar: crores. Will the Minister of Commerce and (2) Rs. 86*42 lakhs included in Industry be pleased to state: the above sum of Rs. 16*6 (a) whether the Committee ap- crores for additional minor pointed for the investigation of Coir irrigation works recommend- Industry has submitted its final re- ed by the team. port; and (3) Rs 2*5 crores as taccavi loan (b) if so, whether a copy of the and Rs. 40 lakhs as grants report will be placed on the Table’ for relief expenditure on pat- tern and after allowing for The Minister of Commerce and In- the amount to be incurred by dustry (Shrl Lai Bahadur Shastri): the State Government accord- (•) The Committee has submitted an ing to the Finance Commis- interim report in respect of the Coir sion’s award. 2 117 Written Anatom 29 NOVEMBER 1958 Written Answers axiS t DJU. Observers languages of their regions. These have gone a very long way in counter- 801 Shri Koratkar:Will the Prime ^Minister acting Pakistan propaganda about be pleased to state: Kashmir in those regions. Our Mis- (a) the total number of United sions have also taken prompt correc- Nations Organisation observers who tive action in regard to false or are now posted on cease fire line in coloured items on Kashmir and other Kashmir State; and Indian developments appearing in the foreign press. (b) the total amount incurred on these United Nations Organization (ii) Important news and facts about observers during 1957-58? the Kashmir situation were morse- The Prime Minister and Minister cast regularly through daily trans- missions to our Posts abroad. of External Affairs (Shri Jawaharlal Nehru): (a) The number ot U.N. observers posted on the Cease Fire (iii) A number of pamphlets on the Line in the Jammu and Kashmir State Kashmir Question were produced by is not fixed but varies from time to the External Publicity Division and time. On the 1st November, 1958, distributed to journalists and corres- their number was 28. pondents in India and also to our Missions abroad for wide circulation. (b) Expenditure on U.N. observers A list of such pamphlets is placed is borne by U.N.O. The Govern- on the Table of the Lok Sabha. [See ment of India, however, provide cer- Appendix II, annexure No. 65.] tain minor facilities like accommoda- tion and rations in the forward areas, mechanical transport, free medical (iv) India’s point of view on treatment in Military Hospital etc Kashmir has been carefully explain- ed repeatedly to foreign journalists ffo separate account is maintained in respect of the expenditure involved stationed in India as well as to those in the grant of these facilities. who visited India. They were sup- plied regularly with Press handouts Foreign Publicity and pamphlets etc. brought out by Government of India as well as with 599. Shri Koratkar: Will the Prime books dealing with the subject by Minister be pleased to state: prominent Indian and foreign writers (a) what steps Government have taken to intensify foreign publicity to (v) Press Delegations and eminent counteract Pakistan’s false propa- individual foreign journalists, who ganda against Kashmir during 1957- visited India, were given facilities to 58; and tour this country as also to visit Kashmir and to have first-hand infor- (b) the amount spent on the same mation on this question. during that periodT The Prime Minister and Minister of (vi) The progress and development External Affairs (Shri Jawaharlal achieved by Kashmir State is being Nehru): (a) (i) During the year 1957- presented abroad through photo- 58, a number of notes with back- graphs, exhibitions and documentary films. ground information and data were •ant to various information-Posts abroad for dealing with Pakistan (b) Details of exact expenditure in - propaganda in their areas. curred on the various steps taken to counteract Pakistan propaganda on Our Missions abroad have also issu- Kashmir cannot be furnished, as n o ed various brochures and pamphlets separate break-up of expenditure on the Kashmir Question in various is maintained. £XX9 Written Answer* 29 NOVEMBER 1958 Written Answers' 2X20 Food Plants for 8Hk Worms (b) the kind of toys produced therein; and / Shri Hem B tr u ; • w \ Shrimati Maild* Ahmed: (c) whether these are according to the demand of foreign countries? Will the Minister of Commerce and Industry be pleased to state: The Minister o f Commerce and In- dustry (Shri Lai Bahadur Shastri): (a) whether it is a fact that the (a) and (b). No information is avail- Central Silk Board have withdrawn able about the number of toy fac- the subsidy for growing food plants tories set up in the country so far. for silk worms in Assam; and The kind of toys that are produced in (b) if so, what are the reasons that the country are broadly the following: compelled such a decision? metal toys, educational toys, wooden toys, dolls, glass toys, rubber toys, The Minister of Commerce and In- porcelain and earthen toys, mechani- dustry (Shri Lai Bahadur Shastri): cal toys, etc. (a) No subsidy has been withdrawn (c) The bulk of the manufacture is for growing food plants for silk for the domestic market, but there is worms in Assam. Central Silk Board a good demand for these toys in had not sanctioned any subsidy for foreign countries also. the purpose. (b) Does not arise. Industrial Estate, Agra Housing Problem 594. Seth Achal Singh: Will the Minister of Commerce and Industry m fSardar Iqbal Singh: be pleased to state what progress has s n . ^ shri Rameshwar Tantia: been made in the construction work Will the Minister of Labour «** of Industrial Estate in Agra and by Employment be pleased to refer to what time it will be completed? the reply given to Starred Question No. 895 on the 22nd August, 1958 and The Minister of Commerce and In- state: dustry (Shri V*1 Bahadur Shastri): A statement is laid on the Table of (a) whether the State Governments the Lok Sabha. have since conducted special surveys to find out the magnitude of the S t a t e m e n t housing problem for labourers; In the Industrial Estate at Agra (b) if so, whether Government have there are 74 plots. Details are given received these survey reports; and below:— (c) the main features of the survey (a) One acre plots 10 report of each State? (b) Half acre plots 30 The Deputy Minister of Labour (Shri Abld All): (a) to (c>. Surveys (c) 600 sq. yds. plots 34 are still in progress in most of the States. The construction work in respect of 17 plots of i acre and 14 plots of Toy Factories 600 sq. yds. has been undertaken by the Improvement Trust, Agra. They 59S. Shri Daljit Singh: Will the are under different stages of construc- Minister of Commerce and Industry tion, as shown below:— be pleased to state: (a) Buildings up to door level 2 (a) the number of toy factories set up in the country so far; (b) Buildings upto roof level 10 a » i Statement re 29 NOVEMBKl IM t Art- at OH «fc« iia* The Deputy Minister of Commerce R m >o r t s o f I n d i a n G o v e r n m e n t D e l e - and Industry (Shri Satish Chandra): g a t i o n s t o International L a b o u r 1 beg to lay on the Table, under sub- C o n f e r e n c e section (3) of section 25 of the The Deputy Minister of Labour Rubber Act, 1947, a copy of the (Shri Abid All): I beg to lay on the Rubber Board Employees’ Conduct Table a copy of each of the following Rules published in Notification No SO. Reports — 2083 dated the 11th October 1958 [Placed tn Library See No LT-1083/ 11) Report of the Indian Govern- 581 ment Delegation to the 41st (Maritime) session of the A m e n d m e n t s t o C o f f e e R u l e s International Labour Confer- ence held at Geneva in April- Shri Satish Chandra: I beg to lay Ma>, 1958 on the Table, under sub-section (3) of section 48 of the Coffee Act, 1942, (2) Report of the Indian Govern- a copy of each of the following Noti- ment Delegation to the 42nd fications making certain further session of the International amendments to tho Coffee* Rules. Labour Conference held at 1955:— Geneva m June, 1958. [Placed m Library See No LT-1058/ (1) G.S.R No. 846 dated the 27th 58] September 1998 N otification u n d e r S t a n d a r d s o r (2) G.S.R. No. 1071 dated the 8th W e i c h t s a n d M e a s u r e s A c t November, 1958 [Placed tn Shri Satish Chandra: I beg to lay Library See No LT-1055/ on the Table, in pursuance of an assur- 88]. ance given on the 8th December 1956, azaS Calm* AtHMion » NOVEMBER 2M» to a Matter of Urgent M U c important [Shri Sqtish Chandra} -during the debate on the Standards of Radcli&e and Bagge Awards, Weights and Measures Bill, a copy of or because of differences over draft Notification proposed to be issu- the basis of demarcation. ed under section 12 of the Standards of Weights and Measures Act, 1956. (ii) Exchange of territories conse- •[Placed in Library. See No. LT-1059/ quent on demarcation carried 68]. out in accordance with the Radcliffe and Bagge Awards along certain sectors of the 1240 hr*. boundary between East Pakis- tan and West Bengal. . CALLING ATTENTION TO A (iii) Difficulties created by the MATTER OF URGENT PUBLIC existence of Indian enclaves IMPORTANCE (old Cooch Behar State I mplementation o f A g r e e m e n t enclaves) in Pakistan and REGARDING BORDER ADJUSTMENTS Pakistan enclaves in India. Shrimati Mafida Ahmed (Jorhat): Agreement was reached on the Under Rule 197 I beg to call the settlement ot the problems of the attention of the Prime Minister to the 'first type which were holding up following matter of urgent public demarcation in the following regions: importance and I request that he may (i) Hilli. make a statement thereon: (ii) Berubari Union No. 12. “The progress so far made in implementation of the agreement (iii) Two Chit lands of old Cooch- arrived at recently in New Delhi Behar State adjacent to the between the Prime Ministers of Radcliffe line. India and Pakistan regarding (iv) 24 Parganas d'strict of West border adjustments.” Bengal and Khulna and The Deputy Minister of External Jessore districts of East Affairs (Shrimati Lakshmi Menon): Pakistan. A number of questions have been (v) Bholaganj in Assam; and tabled by hon. Members in regard to the implementation ot the Agreement (vi) Bhagalpur village in Tripura reached at the meeting of the Prime State. Ministers of India and Pakistan held from 9th to 11th September, 1958. One To implement these arrangements, hon. Member has also tabled a notice boundaries have to be demarcated on under Rule 197 asking for a statement the ground, and boundary pillars to be made in this regard. In view erected. The field season for boundary of the interest evinced by hon. Mem- demarcation starts in November. The bers, I take th:s opportunity to explain State Governments are taking steps the present position. for demarcation of boundaries in The Agreement between the Prime accordance with these agreements Ministers dealt with the following There have been meetings between the problems and the lines of settlement Directors of Land Records of the two to be adopted in each case: sides for drawing up programmes of demarcation. (i) Demarcation of boundaries held up because of differences The above also applies to dispute; between India and Pakistan regarding basis of demarcation settled over the interpretation of at the meeting in respect of the boundaries as fixed by the Assam-East Pakistan boundary along a xvt Calling Attention 29 NOVEMBER 1858 to a Matter of Urgeni 210$ 1 Public Importance stretches of the Surma river and the enclaves which are completely surro- Piyain river. unded by Pakistani territory, and 74 Pakistan enclaves similarly completely surrounded by Indian territory. It is Date tor exchange of wrongly held not possible for the local Governments areas, if any, will be fixed in consul- concerned to have direct access to tation with the State Governments these territories. As this led to serious concerned after the demarcation work difficulties in administering these is completed. areas, this problem was settled by an agreement to exchange these enclaves. Implementation of this agreement No agreement was reached on differ- requires legislation as exchange at ences in interpretation of the Radcliffe territory is involved. Necessary steps and Bagge Awards in case of two areas to that end are being taken by the along the Assam-East Pakistan boun- Government of India. No date for the dary and on differences in interpre- exchange of enclaves can be fixed till tation of the Radcliffe Award in case the legislation has been enacted and of four areas along the Punjab-West the State Governments concerned have Pakistan boundary. In addition, there completed necessary preliminary was a difference of view regarding the arrangements to carry out the basis of demarcation along the India- exchange. West Pakistan border in the Cutch- S:nd region. The Prime Ministers agreed to consider further methods of settling these disputes and specifically The question of vacation by the directed that, in regard to disputes Pakistani forces of their illegal occu- about areas in the vicinity of Hussaini- pation of Tukergram was taken uj ■wala and Suleimanke Headworks of during the discussions. The Pakistai the Punjab-West Pakistan border, the Prime Minister suggested that thii Foreign Secretary of the Government should go hand in hand with th< of Pakistan and the Commonwealth solution of the difficulties that ha< Secretary of the Government of India recently arisen in the Patharia Hil should, in consultation with their Forest area where the alleged Indiai engineers, submit necessary proposals authorities had made similar encroach to the Prime Ministers. No date for ments and changed the status quo. I this meeting of the Secretaries of the was finally agreed that the two Con two Governments has been fixed so servators of Forests and the two Ch’e far. Secretaries of Assam and East Pakis tan should meet and decide the area to be exploited by each party in tto Agreement was reached on the Patharia Hill Forest area withou second problem mentioned 8bove and overlapping on each other’s area* 15th January 1959 was fixed as the This will involve a temporary demar date for exchange of terrtories in cation and will take into account d certain sectors of the East Pakistan- facto possess:on. Since the meettn, West Bengal boundary, where demar- of Prime Ministers, the Government e cation has been completed in accord- India have requested the Govemmen ance with the Radcliffe and Bagge of Pakistan to implement this part of Awards. The Government of West the agreement. Correspondence has Bengal have been advised to take also taken place between the Govern- necessary steps for the exchange at ments of Assam and East Pakistan the areas in question by the due date. regarding the meeting of the officials Necessary action Is being taken by to resolve the difficulties in the them. Patharia H’lls Reserve Forest area. So far, no definite date for the meeting Lastly, there was the question of has been agreed to by the Pakistan enclaves. There are 123 Indian authorities. 41* Calling Atm tto* to a NOVEMBER » ISM 2ty> M e m of UrgmU Public Importance Ikilw tt VMM Chaknnurttjr (Basir- 1ZJM tan. taat): May 1 just ask one thing? The hon. Deputy Minister has stated that BUSINESS OF THE HOUSE the demarcation line between West The Minister of Parliamentary Bengal and last Pakistan has been Affairs (Stall Sstya Narsyan Slatan): finalised. May I know whether this With your permission, Sir, I rise to map or a detailed account of it will announce that Government Business, be laid on the Table of the House in this House (or the week commenc- immediately so that we will be in a ing 1st December, 1958, will consist position to know exactly where our of:— line ends and where their line begins? (1) Further consideration and Shrlmatl Lafcshmi Menon: In the passing of the Parliament statement I have sa;d that in certain (Prevention of Disqualifica- areas demarcation has not begun in tion) Bill, 1957, as reported November. In certain areas we have by the Joint Committee; finally demarcated. (2) Consideration and passing of: Shrluati Sena Ctukrsvartty: The (i) The Himachal Pradesh demarcation between West Bengal Legislative Assembly (Con- and East Pakistan is final and the West stitution and Proceedings') Bengal Government has been advised Validation Bill. 1958; to hand over the area. That is what I heard the hon. Deputy Minister to say. (ii) The Assam Rifles (Amend- Before it is done, this House at least ment) Bill, 1958; should know the map as it stands and what are exactly the portions that are on) The Salaries and Allow- going to be given because there are ances of Members of Par- so many Char lands and nobody liament (Amendment) Bill, knows to whom they belong. Today 1958; they are in our possession; tomorrow they may be in somebody clso’s pos- Some Hon. Members: Yes, Sir jfttRT VT IP* If? *rt ft ft. TT qftJ IT? ^ '-n *R 5TOTTT Mr. Speaker: May I know who are all the hon Members who want to fj# . ssrtst f o m V, speak? £rismakftf«T^rTgsft? swr* Some Hon. Members rose— % ^Tcff * t SPTffT 3fT § W tf tft ?TTO ^ T^r t I 5T^ct tft «lT*T$t Mr. Speaker: So, Shri Dange, Shn Khadilkar, Shri Mshanty, Shri Ajit are T^t ft 1 fa* *5 5t*TT Singh Sarhadi, Shri Radha Raman and ft? jw S?r?ft * fat w % sitor Shri Nathwani want to participate. strt frrcrcr antgT 5i^f Now, how many minutes does the hon. Minister propose to take for v t errs q wi i fara af.t eatn replying? fa?wrr ftjpw ^>rr ’arrf^, ^ ftra»ft «T^mrr ft^ ft Hie Minister of Finance (Shri Morarji Desai): 30-40 minutes HirnraT, ?[t ««nr % anw^jf, *r ^ u vtcR*B%5^t^t3rrT^t|» Mr. Speaker: I will call him at 2.30 then I will call Shri Dange imme- *f ^ tt ft; ^hrT ft»R f?r afr ^ iht | diately after Shri Braj Raj Singh mci 4 ijf h «nt vnft (f 1 their own profits or fortunes naturally they would feel bad about it, and if 3nr fatft ?rrfi & *nr*re sst ! you hand over the management to *Rft t f t w fa*PT TT them or their favourites naturally the result is bound to be what it was, as | f*F *PT ft wn Shrimitt Rena Chakravartty Mr. Speaker:___Shri Dange never (Basirhat) I also, as a new Member of said that. He only wanted to say that the Estimates Committee, want to he was of a particular view. That is know this. For instance, a policy has w h y I sugested to Mr. Dange and other been laid down by this House. Take Members of the Committee that wher- the case of the Industrial Policy ever they differed they may bring it to Resolution. Estimates Committee my notice. It is true that Mr. Dange after Estimates Committee reports on brought it to my notice and asked the matter, and the reports come whether he had the right to append a before this House. But actually we minute of dissent. are making recommendations which go absolutely counter to the policy I looked into all the precedents of resolutions. These are economic the House of Commons, but there is no matters. They are affecting our precedent to allow a dissenting note economy. In such matters do we have to the reports of the Estimates Com- a right to enunciate a policy which is mittee. The practice which they adopt, completely contrary to the one which and which I suggested to him, is that has been laid down by the House? in the minutes at the proceedings, This is a matter which has worried me which are printed and circulated, the for a long time. dissenting opinion will find a place. It is always open to a Member of the IS hrs. Estimates Committee to state what exactly he feels if he does not agree Shri S. A. Dange: You know, Sir, with a conclusion of the Committee. that on this question I myself had Then it will be recorded in the approached you saying that certain minutes. There is no difficulty about things are being done with which I it, and expression of opinion is not did not agree, because they are shut out. The minutes of the Cam- matters of policy laid down by the mittee where these are embodied aie House. But under the rules I have no laid on the Table of the House. right to write a minute of dissent, though I sent one. Then you agreed Then there is the other point raised to give consideration to that matter, by Shrimati Renu Chakravartty. This but nothing came out of it later on. In matter was also brought to my notice fact, I was informed by the Lok Sabha by an hon. Minister who said that it Secretariat that I had no right to was not open to the Estimates Com- append a minute of dissent Then I mittee to go into a question of policy. did not know what to do, because this The Estimates Committee has no 3147 Motion re: S9 NDVKUBKR 1988 Investment Policy of 2148 Life Insurance Corporation independent right to go into a policy This is a policy laid down by the or criticise a policy laid down by House. The Committee may fed that Parliament The Committee is bound a change of policy might be necessary hy any policy laid down by Parlia- in certain respects. But if it is not ment and can only examine the related to economy, it does not arise estimates in relation to that policy. and it has no right to suggest a change Beyond that it has not got any right of policy. But if it is intimately -to go. If, however, in the examination connected with economy and if it finds of the estimates, it is found that that that it has led to wastage, or economy policy, however well-intentioned it can be effected, it may make a might have been at the time it was suggestion to the House. made, has worked somewhat to the detriment of the country, so'far as Shrimati Rena Chakravartty: May economic matters are concerned, it can I take it that such matters where say that this policy has worked to this policies are laid down by the House extent. But unrelated to economy no should not be got over and that such policy decision can be examined by matters should be open matters of the Committee. discussion by the House? The Committee is primarily interested in checking the estimates Mr. Speaker: There is no question and suggesting economy. If it appears of supporting or getting over any that a particular policy has worked to policy that has been laid down by the our detriment, there can be alterna- House. It is always open to the tives and it can make a suggestion Committee to go into matters of But unrelated to economy or financial economy. If m matters arising out of matters no policy decision can be com- economy it is found that in the mented upon by the Estimates Com- implementation of that policy certain mittee and it is not right that difficulties arise or wastage results, the the Estimates Committee should go Committee can go into that policy into it The Direction on this subject, No But independently of economy a 98(3) sa>*— matter of policy ought not to be “With regard to clause (b) of touched by the Estimates Committee. rule 810 the Committee shall not go against the policy approved b> After the Committee has made its Parliament; but where it is esta- report it is always open to Members blished on evidence that a to utilise it in the course of discussion. particular policy is not leading to But 1 have always felt that if the the expected or desired results or reports of the Estimates Committee is leading to waste, it is the duty are brought up here for discussion of the Committee to bring to the and decision, sometimes Government notice of the House that may agree or may not agree with the a change in policy is recommendations of the Committee and called for. The fundamental we will only be throwing the doom objectives of the 'Committee are wide open for Government, if they economy, efficiency in administra- so choose, to avoid implementation of tion and ensuring that money is the recommendations of the Committee. well laid out; but, if on close That is the danger we anticipated and examination, it is revealed that therefore we decided that an what large stuns are going to waste the Estimates Committee in its because a certain policy is follow- wisdom after careful scrutiny has ed, the Committee may point out come to a decision we should not the defects and give reasons for allow any discussion here. Of course, tiie change in the policy for the indirectly it can be used for ooe consideration of the House.” purpose or another. 2149 Motion ro: 29 NOVEMBER 1958 Investment Policy o] 2J5C Life Insurance Corporation Shri Khadilkar (Ahmednagar): May recommendations 'or the attitude of I seek clarifiitation on a point? The the Estimates Committee is not very Estimates Committee may, in the fair. I wa s myself a member of the course of examination find that a Estimates Committee for more than particular policy in the process of 2i years. If you will kindly go through implementation may have led to the report and the recommendations, wastage or inefficiency. If you study there is not a single recom- the reports—I have been on the mendation which is inconsistent Committee for the past eighteen or not in line with the policy laid months—you will find it pointed out down. Mr. Dange referred to the oil that the nationalised concerns are leoS refineries. Even the Industrial efficient or economical in their day to Policy Resolution itself permits day working and if an attempt is not co-operation with the private sector. made to improve their efficiency or All that the committee said was that effect economy it is a dangerous thing this question should be examined. If and would undermine the general you kindly go through the recom- policy resolution which has been mendations, you will find that the accepted by Government. What I criticism, particularly that made by suggest is that the limitations placed Mr. Khadilkar, that the committee is by this are not operated in a proper trying to do this and that is not very manner. fair. Mr. Speaker: We have already accepted the principle of democracy Mr. Speaker: Let us stop further and socialist pattern of society. As discussion. I always believe that our at present advised, I do not think the Estimates Committee, consisting of 30 Estimates Committee should go into Members is always in the right. That the question of nationalisation versus is my impression and there is no doubt private enterprise. about it. Nobody need criticise the Estimates Committee directly or Shri S. A. Dange: Indirectly it has indirectly. That is why I submitted gone. to hon. Members here for considera- tion that if there is any difficulty, they Mr. Speaker: If it does so, it will be may bring it to my notice. Mr. Dange going too much out. It is only a brought it to my notice and I question of stating when, how and suggested that if differences of by what stages we shall completely opinion are included in the minutes of nationalise, or achieve the socialist the proceedings of the Estimates pattern of society which has been Committee, the House will be apprised accepted by the House. It is no good of the situation. As regards the oil bringing in the question of private refineries, etc., we do not have all the enterprise versus public industry and recommendations before us. So, I suggesting that it will be better to think unless the House is satisfied to give it into the hands of the private the contrary, we will always accept industry. Of course, some people that the Estimates Committee is right. may be vmder the impression that if we give the whole Government into Shri Jaipal Singh: I hope it is not the hands of one or two people, it minutes of dissent that you have will be better. There is no end to permitted. it. This is too big a matter for the Estimates Committee or any other committee. That is something which Mr. Speaker: No. I said, differences we have accepted. of opinion may be included in the minutes of the meeting. Shri Morarka (Jhunjhunu): I would submit that the criticism Shri S. A. Dange: I was just from the hon. Members against the pointing out.... m i Motion T*: V NOVEMBER 195® Invtstment Policy of a i j 2 Life Insurance Corporation Mr. SpMfcttr: I do not say one way exactly what Messrs. Vaidyanathan, or the other now. Patel and Mundra tried 19 do one way Shri 8. A. D ure: I do not take tt or the other and got into trouble. as your approval to debate it now. This policy is put in these words: But X will make a request. For the attention of those who emphasise m> “The national interest would much on back-door nationalisation, be served by evening out the I suggest that there is a fluctuations in the stock market". danger of back-door denationalisation I say that national economy has also. So, we should be rather cautious nothing to do with the stock exchange. about this. That is all I was saying. Any index of development or dep- There is one more matter to ression in the national economy is not which a reference should be made. necessarily reflected in the stock That also is a matter of fundamental exchange. Sometimes they are, but policy, namely, the question of the sometimes the stock exchange collap- relation of the L.I.C. with the stock ses due to the operations of a very exchange. On this matter, I am imaginative speculator and it has sorry to see that the policy state- nothing to do with the boom or dep- ment of the Finance Minister is true ression. Even though he has no to the old policy. There is nothing share, he just goes on selling what is new in it. In fact, the dangers that called bogus sales and the stock ex- we had anticipated and which we change collapses. Is it the intention thought would have been removed that at such a time the L.I.C. should in the new policy statement are still come in and support the stock ex- inherent in the statement. change, saying it is in the national interest? If a bogus operator in the For example, the funds of nationa- exchange says that the Tata shares lised insurance should in no case be have come down from 300 to 100, available for operations in the stock Jamshedpur is not going to collapse. exchange. Stock exchange operation Hie operator will collapse. Jamshed- have nothing to do with national pur will produce iron, whether Tatas development, planning or socialism. shares are quoted at 100, 200 or 1,000. I was surprised to see my friend Shri Asoka Mehta, supporting stock Shri Morarka: If the prices of Tata exchange operations in the name of shares come down from 300 to 100, socialism. Whatever it may be, what is wrong in buying them? there is a standing quarrel between Shri S. A. Dange: I am not saying his socialism and mine and so, there about buying or selling, but the words is no use expressing surprise over it. are "evening out fluctuations”. But that Shri Morarji Desai should agree to allowing even some portion Shri Morarji Desai: It is indirectly of the L.I.C. funds to be used in the used. It is not direct. That is the stock exchange is shall I say sur- incidental effect of it. My hon. friend prising or shall I say quite is very strong on the stock exchange. natural? Of course, formerly, when It is his old pet theme. the stock exchange was being helped Shri S. A. Osage: It is an old cancer by the L.I.C. funds, at that time, there on the economy and you continue to was no claim by the L.I.C. people that have the cancer. That this evening it was being done in national interest out of the fluctuations is in the nation- The interest turned out to be that of al interest is supported by praja- HSCO or some other company. But socialism in the bargain. (Interrup- in the new statement, it is said that tions) . So, 1 would say that this ques- the policy should be “Sell in boom tion of evening out of fluctuations in and bay in depression”. That is the the stock exchange should not find any simple rule of all speculators; there placc in our policy of utilisation o f is nothing special about it. That is L.I.C. funds. a*53 Motion re: 29 NOVEMBER 1959 Investment Policy of JUS4 Lift Insurant* Corporation [Shri S. A* Dange] The other point I would like to Shri S. A. Dange: Very good. I think mention is that it should be a matter the speed should be expedited. That of policy for us to direct that the LIC would be better. Secondly they ihoiild funds also should be used particularly pay greater heed to the remarks of the in the interest of its own employees. employees without any anxiety that What is wrong in that? For example, that might affect the investment of the the housing of employees is not at LIC or its development. These are the present supposed to be the responsi- points I wish to make. Nationalisation bility of the LIC. Will that be made through investment---- a responsibility of the Corporation? I Mr. Speaker: May I ask lor a think it should be. I do not think the policy is such that the hon. Finance clarification? Is it the policy of the Minister will have any opposition to LIC now to build houses for letting out to various people? I understand such a thing. there is a 14 storey-building in Madras. What are they going to do with it? Is Of course, he made a statement, * the LIC going to continue the policy am told yesterday, that it is a policy followed by its predecessors? Is It the not to give bonus in nationalised con- proposal to build houses for letting cerns, I think that policy also should out and carrying on business? be changed The employees are also a factor in developing national Shri Morarji Desai: I do not think economy. I hope he will accept that that is the policy of the LIC. Wherever thtere is any house to be let, they do Shri Mararji Desai: It does not arise let it That is the policy. TTiey have set apart about Rs. 3 crores, I believe, out of this for housing societies. Shri S. A. Dange: It is a question of Mr. Speaker: Personally they do the investment of LIC funds LIC not build houses? funds are invested in mortgages and loans on properties. Shri Morarji Deaal: They also build where it is necessary. Mr. Speaker: About the granting of Shri V. P Nayar (Quilon): That is bonus, it was said in the Question for office purpose*. Hour yesterday that instructions have been issued that no bonus shall be Shri S. A. Dange: The LIC at present paid as a matter of policy This policy is not very clear on this question, statement does not refer to that. because as a legacy of nationalisation it has also inherited the open plots of Shri S. A. Dange: I am only refer- land. The question is what to do wish ring to the attitude of utilising the the open plots Are we going to surplus. I am just making a statement develop them’ For that they have that the LIC funds should be utilised started an engineering department. in building houses for the employees. Why should they not now start That property is L.I.C property, 3nd another department for housing. I that is a method of investment in hope he will, I do no know. They property. At present Rs. 18 crores or have open plots. An engineering so are invested in mortgage and loans department has been started to on property. Let some Rs. 2 crores or develop those open plots. When they 3 crores be added in the way of build- have a department to develop those ing houses. plots could they not have another department to build houses there? Shri Morarji Desai: They are But I do not think It is the policy of building. the Government 2155 Motion re 29 NOVEMBER 1958 Investment Policy of 2156 Life Insurance Corporation Therefore, in conclusion 1 would got the support of the Houje Even the say that the policy statement voice of disconsonance expressed in is not in consonance with the general certain matters by the hon leader of policy of nationalisation adopted by the Communist group in this House this House, and this statement was as it appears to me, a bit half- especially in its relation to linking up hearted, because he ended by saying LIC funds with stock exchange, is a that if some amendments arc made, dangerous policy If these correc- the policy would be a very welcome tions are made, then I am sure the one So, what he expressed was large- policy statement would be very much ly about the question of what he des- welcome Thm third thing I would cribed as de-nationalisation He said request the hon Minister to do is, a process of de-nationalisation is as I said at the beginning, to give us going on as a result of the policy of a list of all those companies and pro- the LIC I wonder what he meant by perties m which the LIC funds art that because ho did not substantiate bemp invested at present it Mr Speaker I will call on the hon Shri S A Dange I s,aid about the Deputy Minister Then I will call Fatnnates Committee Shri Mahanty and then tht hon Minister Shri B R Bhagat Later on he went to the Estimate^ Committee Shri Tyagi (Dehra Dun) Before Anvhow, I am glad that he said that vou call the hon Minister, I want to as a result of this policy there is no put some questions so that he can process of dt. nationalisation reply I want to know what is the policy of Government with regard to 13 25 hrs control of the concerns of which the shares the LIC buys I am not in IP\ndit Thmcur Das Bharcava in the favour of complete control, but we Chatr] must have representation on the management Suppose you have 1 b That is dibo my impression and per cent share of any concern Hew that is the impression of the House do you participate in the election of too I am glad that he confirms it But the managing director or the manage- there have been certain points or sug- ment’ Do you have any voice or not’ gestions made by some hon Members Shri Morarji Desai: They do not which, so far as the Government is participate in the management or take concerned, we welcome And I am control of them unless it is found really very satisfied that the whole necessary to safeguard the interests debate has been a very constructive of the investments of the LIC one and thrown out verv useful sug- gestions Shri Tyagi: Then are proxies issu ed in tiie names of persona’ The hon Dr Krishnaswami, who spoke in the beginning, referred to Shri Morarji Demi: Ordinarily thev certain statements to be made to the do not take part in that House showing the geographical dis- Shri Tyagi' Why should they not tribution of the investments during take part’ the last two years This needs com- pilation, and I assure the House that The Deputy Minister of Finance we will try to collect the information (Shri B. &. Bharat): Mr Speaker, and would place it before the House. both yesterday and today the debate He made another suggestion, which went on and one gets the impression was supported by some other hon. Hurt by and large the policy statement Members too, that six-monthly re- about the Investments of the U C has ports should be prepared about (he m f t Htrtton t * » NOVEMBER 1W8 Investment Pc Uc m oj .ai«S 1 4 $ Imauvmm nmmrnflwn fShn 8 . R. Bhagat] investment# of the L.LC. This will also shares or stocks in which the invest' 1ke considered. ment is to be made are sound ones and contain to section 27A. If they Another suggestion that was thrown are approved securities, certainly this out by certain members was that local question of diversification can be advisory bodies should be formed to looked into. But that point has to be help the LIC, particularly with regard borne in mind. to their investments and that various industries shou.d be represented Then a point was made by the hon. there. Similarly, another suggestion Shri Asoka Mehta about the invest- was made that the present investment ments in the various categories. He committee should be more broad- said, and some other hon. Members based. Because, a complaint was made also said, that investments in Gov- that the investment committee, as it ernment securities has fallen where- is constituted, does not represent all as in the private sector it has gone up. sectors and does not possess an inti- I have a statement before me which mate knowledge of the capita] market has been compiled which shows the investments in the category, public in the country. TCiese are suggestions sector. Before nationalisation, we had offered in a very constructive spirit and they will be looked into. some companies which were foreign companies and some of their invest- ments were made in foreign countries. Another point thBt was made was If we take it separately, the invest- about the problem of diversification of ments in the public sector, in India the investments of the LIC. It is a today, that is, 30-9-1958, amount to very moot point, and even the policy Rs. 273* 18 crores, that is about 70' 1 statement made by the Finance Min- per cent, which is ’ 51 per cent more ister says that the investment policy than what was invested in India in should not have any parochial view the public sector before nationalisa- So, there is no disagreement about tion. What has happened is that in- this. The only question is how to im- vestments in the public sector in the plement it. Even today the invest- countries outside India has gone ments of the LIC runs over a large down obviously because some of the number of companies. So far as the foreign companies do not exist now. industries are concerned, investments That has gone down from Rs. 12*09 are made in almost all the important crores to Rs. 7-03 crores, that is 16 industries, including banks. It is 3 per cent. That has brought down the point worth considering how far the total percentage of the public sector. investments should be regionally dis- That does not give a true picture. tributed. We have the various zones Actually, so far as India is concerned, of the LIC, and a point was made that investment in the public sector has whatever accrued to a particular zone gone up. should be invested in that zone itself. Shri Bimal Ghoae (Barakpore): That would be a very rigid approach, May I ask one question? The policy but it can be accepted in principle statement said that it should be SO that the investments should be diver- per cent. Is it the bon. Minister’s con- sified, both as regards the industries tention that it will never go below as well as the regions. But the primary 70 per cent? What is the hon. Minis- consideration which a body like the ter driving at? It has not fallen, and LIC should have in view is the safe- it will not tell in the future also? ty of the investment—whether the Investments are sound ones or not. So, Shri B. R. Bhagat: I do not know any question of diversification in one about the future. I was only trying region or various regions must pri- to explain the misconception that marily satisfy the condition that the seems to exist vis. that investment in Motto* -e : 29 NOVEMBER 1998 Investment Policy of 2260 Life Insurance Corporation fte public sector hu gone down. It faced today I will ask the L.I.C to Jms not gone down That was the reconsider this matter * simple point that I was making Some This leaves me what the last point bon Members referred to loam. which has been raised by a number 8hri Dasappa (Bungalore): May I of hon Members, Shn Bimal Ghose, ask a question? Shri Rameshwar Tantia and others, who said about the propriety of rais- Shri B. R. Bhafat: I am going to ing the limit of equity holding of the tile next point Some hon Members Corporation from 10 per cent to 30 «»»i that the LIC should make in- per cent They said, it is on the high vestments in mortgages of real pro side and fears of what is now more perty Shri Asoka Mehta said that m popularly known7 as backdoor na- other countries, insurance companies tionalisation have been expressed I play an important part in the bousing am sure, the Finance Minuter, when programme and development of real he winds up the debate, will dsa’ with setate Unfortunately, with the bad ex- this larger question of policy As perience of the LIC which it has in- the Prime Mini&tci said some time herited from various companies, it has ago, he is opposed to any backdoor to engage itself m a large number of methods—eve n nationalisation by cases of litigation about the bad mort- backdoor methods I can assure the gages that it has inherited Already, hon Member Shn S A Dange that there are about 3435 mortagage loans we are opposed also to backdoor de- aggregating to Rs 13£ crores and nationalisation methods The present over 400 suits have so far been filed Government does not believr m for the recovery of the dues under ba kdoor methods If they want na- these mortgages It is likely that we tionalisation, they will come to the may have to file another 200 suits for house and ask for a policy of nationa- their recovery It is not as if in prin- lisation with respect to a particular ciple that the LIC is opposed to it industry or a firm We arc opposed At present, the LIC’s hands are too to any backdoor policy, whether of full with all these suits and legal nationalisation or de-nationalisation complications But, m view of the But the fact remains that there was strong views expressed m the House a change or modification m section and the urgency of the housing pro- 27A with respect to its equity hold- blem, particularly in the urban areas, ing The increase in percentage from we would ask the LIC to give this 10 to 30 was caused firstly because matter its most earnest consideration of the inhentance of the Life In- towards reviving a facilitv wht-h was surance Corporation. The L I C all along available to the public and with 240 companies, found itself to the policy holders overnight with percentages of hold- ing in many companies more than 10 per cent So it was necessary to re- Shri Btmal Ghese: Here is a letter sort to the modification Secondly, to a gentleman from the Acting Mana- the more important consideration ging Director, Shn Snmvasan, that that weighed with the Government mortgages were not being granted a* was that the flow of funds to the • of policy Am I to under- private sector should not be reduced. stand that that u not true* I think it is a well-known fact that while the Insurance coaapanies were ghri B. B. Bhagat: Policy for the notionallsed, the then Finance Minis- present ter made a statement m. Che House assuring the private sector i s t the ghri Bfaaal Cllmn Why say, tor same proportion of money, the same the present. amount of funds couM be made Htti m. B. W aPt: I am only stating available as they were tarring at that the j|p«iitn « with which the L IC is particular juncture If fids pernewtagt 2161 Motion re: 29 NOVEMBERInvestment 1998Policy of ai& t U fe Insurance Corporation [Shri B. ,R. Bhagat] was leapt at 10 or if it is less than much farther from section 27A at the 30, what would happen is, the L.I.C’s 1938 Act. holding in many companies would It is being said that this section has have to be reduced, with the obvious stood the test of time, but in all hu- result that the funds available Out mility I submit that times have of L. I. C.’s investible funds will be changed. It is no good waking up much less than what they were just like a Rip Van Winkle after a Minis- at the time of nationalisation. For ter was sacrificed on the altar of these two considerations, one of prac- public resentment, after much asper- ticability and the other, the assur- sions were cast on the LIC, and ance given by the then Finance Min- saying that section 27A of the 1938 ister, it was necessary as a practical Act has stood the test of time. There- measure to raise this equity holding fore it is high time we also incorpo- from 10 to 30 per cent. rate it in some way or other, by way of regulations or by notifications. With these words, I submit, I am Iot support. Mbat As. 1 said, this. is. a very s&i. c o t o l - the policy has received and as I said, mentary on the capacity of the Gov- the larger questions of policy will be ernment to run the public sector to dealt with by the Finance Minister the best advantage of the community. when he winds up the debate? Public memory is proverbially short. On 23rd May 1956 this matter Start Mahanty (Dhenkanal): Mr. came up before the House, and any Chairman, Sir, the policy or lack of number of Members had pleaded that policy of the L. I. C. investments certain principles should be laid sparked a keen interest all over the down which should govern the invest- country and it nearly touched off a ment of the LIC funds. At that time ministerial crisis in connection with a very strong case was made that sec- the Mundhra deal. tion 27A should be incorporated in the L.I.C. Act, but the then Finance Minister, Shri C. D. Deshmukh, said It was rightly so. Here is a Cor- that since the Government were the poration, a monolithic body which approving authority, they needed no combines in itself 240 private com- such approval Even though the panies which can invest at the rate of rulers could not be ruled, the rulers Rs. SO lakhs a week. Therefore, the had to be ruled by certain princi- policy of the L.I.C. obviously is a ples; otherwise, the rule would be matter not of political partisanship, chaos, the rule would be anarchy— but of great national and ecomomic and that we have seen, how anarchi- importance. If we look at the genesis cal conditions prevailed, how persons of this matter, we come to the pain- at the top of the administration had ful conclusion that this Government not even studied the Act. That was which has been wielding such a power- the pitiable, candid confession of ful influence, in the public sector is Shri Kamath before Mr. Justice singularly incompetent to run this Chagla. sector. I will come to that later. Before 1 do so, I would like, in all So, Shri Deshmukh had said, and humility, to submit before the the Congress Party had swallowed It hon. Minister that now, his position, that since the Government went the to me, is just like that of a person approving authority under section who has been rubbing the lamp to 27A of the Act, they need not have prodace a genii and what has been a separate section. Certain regula- produced after all these two years tions certain notifications, certain rules Ja an anaemic dwarf. It leads us not could be prescribed under section 432 3 l 63 Motion re. S® NOVEMBER 1958 Investment Policy of 2164 Life Insurance Corporation of the LLC Act. But that has 1$ not a very small sum We would taken them so long. They had to Uke to know if the L IC tiad in their wait for the sacrifice of one of their View other Mundhras who could also colleagues They had to wait for a be patronised by this 15 per cent I great controversy to rage They had am sorry a document of this nature to wait for a great aspersion to be not as comprehensive as it was cast on the LIC and then the matter expected to be did not end there On 20th Febru- ary this year the hon Prime Minis- It is not merely this 15 per cent ter gave an assurance to this House There is also another 5 per cent about that the notification would be laid the investment of which we are con- on the Table “soon”, but it took six cerned Under section 28 of the L IC months thereafter for the notification Act of 1956 there is a provision that to be prepared and laid on the Table After retaining 95 per cent of the surplus which will be declared by After all, when we look at the the actuary for the policyholders, the notification, what is there7 As I balance 5 per cent is to be invested JxBxe- jvSu4 Jtbstse joandiflcalinns are not I better read out the section only unsatisfactory in many rerpects, “If, as a result of any investi- they also raise many questions which gation undertaken by the Corpo- I hope the hon Minister, m his wis- ration under section 26, any sur- dom, will try to answer plus emerges, not less than 95 per Under the old Act 25 per cent was cent of such surplus shall be al- to be invested m Government securi- located or reserved for the policy- ties, another 25 per cent in approved holders of the Corporation and securities and the balance 50 per cent the remainder may be utilised for was to be invested m approved in- such purposes and in such man- vestments, investments which stood ner as the Government may de- the test of section 27A What do we termine H find in the present modification9 We Under Chapter VI of the LIC Act, find that 50 per cent is to be invested ah actuary has to go into the work- in Government and approved securi- ing capital, the capital invested for ties, 35 per cent in approved invest- covering the risks etc, and the bal- ments, approved investments which ance is declared by the actuary as will stand the test of section 27A with surplus A certain surplus emerges slight modifications here and there, We do not know what its volume will and the balance 15 per cent in other be, and what 5 per cent of that investments I would like to know surplus will be The Act lays from the hon Minister what is meant down the Government must en- by other investments Fifteen per Unesate the principles which should cent is not a very small sum govern the investment of this 5 per Shrl B. R. Bhagat: It is 35 and cent of the surplus I am sorry to not 15 per cent sfey that this document does not also mention anything about this 5 per Shrl Mahaaty: I said 50 per cent ctat as it is obligatory on them to do> is to be invested in Government and uhder section 28 of the LIC Act approved securities, giltedged securi- ties etc, and 35 per cent in approved As you know, Sir, there is the investments which will stand the test working capital, there is the capital of the modified section 27A, and the tQ be invested to cover the risks, and balance 15 per cent in other invest- there is the surplus The previous ments This document which has companies used to invest this work- been circulated has not mentioned ing capital in easily realisable short- what principles should govern these term investments Whether the work- other investments Fifteen per cent >hg capital of the L I C also is going to Matienx *e: ® I &68 rwtttstment Ptrifey <# j i f f X<{fc Insurance Corporation [Shri Mfchanty} be invested In easily realisable short- only 85 per cent There la another term investments, and if so what per cent which is to be invested principles will guide such investment in other Investments. I am labouring this point because, whatever the modifications may be, Shri Nathwanl Here again, I must submit another We can have a long range policy point for the consideration of this in the matter of housing by the in- hon. House. I have already said that vestment of these funds to some there is a lot of disparity in the extent. I hope the points mentioned matter of investments. We have by me would be considered by the taken a survey of rural credit. Rural hon. Finance Minister. credit is simply starving because of the lack of funds; and the moment "ft ~ ~ (~r ~) you give to agriculturists the finance ~-lfTlTfu ll~, f;;m '{1m q1f • 2179 Motion re 29 N6 VbMBER 1998 Investment Policy of 218o Life Insurance Corporation TfcT 4 «RSPPr FTHRT TOT J I f *t t ^ 3if?r »fr q flm rteT ?t *rf * t f ^ $ fa *t 5frf^-*rr t I am also very happy to find that There is also, Sir, the suggestion or there is agreement about the objec- the criticism that the Investment tives which ought to be followed in Committee does not represent all re- the matter of this investment. There- gions and, therefore, there is a possi- fore, in that regard too I will not have bility of some regions being neglected much to say. and the activities of investment being confined only to the more developed parts of the country to the cost of I shall certainly, Sir, try to deal the leas developed parts of the coun- with some of the apprehensions which try. This apprehension, Sir,, is not bwvft amen in the minds of some as well'founded. The Investment Com- rwgaxds the possible interpretation or mittee by its very nature is bound to use of some of the items of the policy, be a small one .and is bound to con- and some of the suggestions made sist of people who have expert know- whioh are neither unanimous nor ledge and experience of this kind of acceptable to aH Take, for example, work and it cannot be made repre- the suggestion about the division of sentative on a regional basis,* But the Corporation into five different cor- there are representative* of all re- porations. That is not a suggestion gions on the Corporation itself and it ^rhich is acceptable to everybody, and if «hft.$ccpatBtiflo idhfch.is «Bb&t*ly naturally m . responsible for investment and wbfc* 2it7 lifotion re 20 IMS. Investment PoKev of 21^ Life Insurance Corporation is also responsible lor appointing the Attention was drawn to the neces- Investment Committee. ThWefore, sity of seeing that the Corporation’s the interests of all the regions are funds are utilized for housing schemes safeguarded and taken into considera- in order to help in that activity. It is tion in the matter of working of the the policy of the Corporation to have Corporation. housing for its employees, and it wants to do this,—to have housing for at When it is suggested that the in- least 50 per cent of its employees vestment should be diversified in all within the next ftVe years. The Cor- regions, it is s concrete proposition. I poration have already begun that do not think there will be any differ- activity. They are also setting apart ence of opinion in this matter, but if every year Rs. 3 crores for giving 't is remembered that a large part of loans to co-operative housing societies the funds, investible funds, are in- through the States It will thus be vested in Government securities, Cen- seen that this very factor is taken tral Government loans, State loans and into consideration and is being im- loans of corporations and local bodies plemented. of all regions, it will be realized that there is a diversification in the matter I agree with my friend Shri Asoka of utilization of these funds. As far Mehta that whereas security of in- as I see, 70 per cent of the funds have vestment must be the primary con- been invested in Indian Government sideration, it must not be made such and approved securities in the public a fetish that the whole activity be- sector. comes very static. Some risks have to be taken somewhere, but the risks ought to be reasonable and not as Therefore, the other point also would land the Corporation and Gov- which was raised by my friend Shri ernment in trouble. Therefore, that Asoka Mehta is satisfied, namely, that has got to be taken into considera- we are trying to sec that these funds tion and safeguarded, but consistently are utilized for furthering the Plan, with that, the LIC certainly will try the second Five Year Plan or the third to see that the investible funds are Five Year Plan when it comes, of the utilized in the best manner possible, Government to give effect to the eco- for the good of the community as a nomic policies of Government and for whole and not merely for a profit bringing in a society of the conception motive. In this connection, it was said which we have agreed to. that the issuing of policies with pro- . It is not possible, otherwise, for the fit is not fair to the other people who Corporation itself to go on investing take part in savings like provident s funds in different small sectors In fund and small savings. Here, there itferent parts of the country. I do is some misapprehension or misunder- 2pot think it is possible for them to standing of facts. The interest which- guuiage it from that point of view. It accrues to a policyholder in this in- w»s said that nothing is being invest- vestment is barely two per cent whert- ed in agriculture. That also would as those who hold provident fund and' pot be quite true: directly, the answer small savings have about four ptr would be “yes’. But indirectly, when cent interest Therefore, even when t Corporation subscribes to the Cen- these people get profits, they do not ta l Government loans and to the get more than that at all. If there giat^ loans, it does subscribe to all the is any discrimination, it is against the* ipliptnes of Government which in- policyholder rather than against thdsfe cludes agricultural schemes, irrigation who take part in provident funds and eleictricity schemes and small savings schemes. ? J f * 8* l£en, those who take out jtmHcRs tritk fctJ/ft. ara jpafr a WJjhlSt prt- .2189 Motion re 29 NOVEMBER 1958 Investment Policy of 2190 Life Insurance Corporation [Shn Morqrji Desai] mium. It is not as if for the same ral eases. It is necessary, therefore, premium they get profits. In order to to see that they are safeguarded. It have profits they have got to pay is granted that that may be done. larger premium. Therefore, that Js also a part from which they derive Then, my hon. friend Dr. Krishna- their profits. So, this is a very essen- swami suggested that for future pur- tial part of insurance, and it cannot poses this may not be done, but even be and should not be given up. for future purposes I do not see any difficulty. If 30 per cent or more are I know there are some suggestions invested in public sector concerns or by some people in this matter, who factories or in other concerns not -said that such a policy should be permanently but on some occasions, given up. After all, the work of in- when it becomes necessary to do bo , surance has got to be done with a that may not be necessary in order to view to see that people take to in- stabilize the stock market or to spe- surance more and more and are culate on the stock market which attracted to it in a proper manner. seems to be the concern of my hon. ■Otherwise, you will have no funds at friend Shri Dange. We have, in this -all to invest if people do not comr matter, had very heated debates. I forward for insurance. Then there know this question is a bit tricky, Shri would be no question of having in- Dange has shown many aversions in vestment funds, and if we are to have the present House. This is one of them more and more, and if we want them. He believes in having more and that people should take more and more aversions, and ultimately he will more to'insurance, then it will be have nothing else but aversion in necessary to have attractive scheme? himself of insurance, and have policies with Shri S. A. Dange: Except socialism. profit which forms one item of that attraction. But there is no question Shri Morarji Desai: I do not know. •of making any discrimination against Socialism will itself become an aver- other people who also take part in sion for him. That ii> what I am afraid small savings or in provident funds of. So, he should try to get out of As I said, they get more interest than his aversions, if he wants to be an the policyholders get even after get- amiable person, as he always wants ting profits. to be one. He speaks amiably, but his intention is quite different. If he Then the question arose about in- changes his intention, then he will vestment up to 30 per cent in any have no aversion. When he began to individual concern. There is a divi- speak about the stock market, I did sion of opinion in this matter. There not know what he wanted. He was is one opinion which says that this is self-contradictory. He says—at any right There is another opinion which rate that is what his interpreter said, says that this is not right and that wi when somebody was criticising him should not have it up to 30 per cent here—that the LIC can invest in com- and that it should be confined to 10 panies, i.e., it can buy shares and or 15 per cent. Here again, we have debentures, but that it should not buy got to take into consideration the his- shares in the stock market. Except tory of this percentage. Originally it in the stock market, how else is it to was 10 per cent, but then there were be purchased? (Interruption) . I do 240 companies, and 10 per cent was not know if he ever held any shares. meant only for one company and not I would not be surprised if he held for 240 companies. Now, several any shares, because he can do many companies invested in the same con- things which many people have little cern and such investments total toge- conception of. So, even if he hai ther to more than 30 per cent in seve- shares, I will not be surprised. Motion re 29 NOVEMBER 1958 Investment Policy of 2192 Life Insurance Corporation What is wrong if the LIC invests there be in this policy being continu- its funds in a company if it finds that ed. As a matter of fact1) there would the shares are selling at a low rate9 be hardship if this policy is not con- It can buy them and make profit for tinued the policyholders I do not see why there should be anything wrong in it Equally surprising was the state- Of course, this should not be done in ment of my hon friend, Shri Dange, a careless manner or in a continuous when he said that this nationalised manner as speculators do There is corporation is handed over to people no question of any speculation about who do not believe in nationalisation the LIC when it buys when the prices or who are against nationalisation I are low and sells when the prices are do not see whom he finds against high I do not thmk oncc the LIC nationalisation to whom we have purchases the shares, it should never banded over the management of the part with them at any time, or, when LIC it parts with them, it should never purchase them again I do not see Shri S A Dange The old invest- that is a proper business transaction ment committee was like that at all Several times it may be neces- sary for the LIC to change its stock Shri Morarji Desai I am talking of If it is profitable to do so and inci- the present, not of the past We must dentally if it helps in stabilising the talk always of the present, not of the 'Stock market it cannot bt callcd spe- past When it becomes past, we need culation at all not talk of it We should talk only of the present and the future, the past should only give us a lesson and As a matter of fact, it is in the in- nothing more Let us not have head- terest of the LIC itself to see that the aches Those who want to have stock market is stabilised, because it headaches can have them, I do not is the largest holdei of shares By its want to have any headache very nature, it is bound to be the largest holder of shares It is the LIC which will suffer most if the Thirt. was one question raised by stock market crashes My hon friend Shn Bimal Ghose He asked, how is perhaps will profit if the stock mar it that the percentage of companies ket crashes, because any crash is has been raised but the percentage useful to him m other things He of banks has not been raised He always believes in chaos, trouble has not seen the amended section strife and stress So, he thinks that where the restriction on banks also whenever any crash comes creating a ha been removed He has perhaps scare, strife and stress he can easily misread the portion marked take advantage of it That is where against No 3 or something like that I cannot satisfy him I am interested But if he sees the marking continu- in trying to see that there is no strife, ousl) he will find that the. restriction stress or crash So, I am bound to on banks is gone So, there is no see that the LIC’s activities are such question of making anv discrimina- as help m stabilising things rather tion in these matters than unstabilising them But it is not the purpose of the LIC to play on Hi also said that there should be the stock market or to utilise its no concentration of investment in funds mainly for stabilising the stock Bombay Theic should be no concen- market tration of investment m Bombay or elsewhere There should be a dis- Therefore, this policy of the LIC is persal of investment not only by re- very clear and clearly understood not gions but also by industries and by only by the LIC, but by other people different items of investment That also I do not see what harm can diversification is going on and I hop* 2193 Motion re Investment 29 NOVEMBER 1958 Discussion re Report on 2194 PoliClJ of Life Insur- the IV or king and ance Corporation Administration of Companies Act [Shri Morarji Desai] that when the next report of the LIC Shri Morarji Desai: "Other invest- is presented to this hon. House, all mer.t" means investments other than those facts and figures will be given, in "approved secur-ities", tha; is to so that the House will have full in- say, investments which are not formation about it and suggestions covered, so far as they are safe. That can be made in the light of those is to say, those companies which do figures which provide that informa- not satisfy some of the conditions. tion. Some Government companies or other I do not think I should take longer companies may not satisfy the condi- time in this matter, except to reply to tions, though they are sound invest- one question raised by Shri Mahanty ments. ..I about surplus funds. The actual evaluation has not yet been made and Shri S. A. Danger May we know therefore, the occasion for giving a something about Jessops and BIe? direction has not yet arisen. But under the provisions of the first Act 8hri Morarji Desai: My hon. friend of 1938, the former companies were was not here when this has beP'I1done. entitled or they were allowed to re- 111ere[01'(" he seems to have lost sight lain out of the surplus funds a maxi- of it. Otherwise, he would. have mum of 7~ per cent as profits. But known that a board of management. Government, as the main shareholder, has already been appointed ~y Gov- reserves to itself only 5 per cent of ernment for .Iessops, and the old the surplus funds. There were thirty management has been removed. companies which had become insol- Therefore the purpose has bf:€'n scrv- vent, but Government decided to pay cd. The same thing has bU."l done the policyholders their money as their about Richarri-on o!!d Cruddas policic became due. This am.ounts to about Rs. 70 lakhs. This also will Shri S. A. Dange: What about the come out of that 5 per cent. So an buying of the assets of Jessops? indication may be taken from this fact as to how the surplus funds are Shri Morarji Desai: Why does he going to be utilised. I cannot say anything beyond that at this stage. want the Government to spend all the money when it is not necessary I hope I have clarified the points to do so? Is he only mterested in raised by several hon. Members as seeing that the Government goes far as I can deal with them. bankrupt? Shri Bimal Ghose: I want one clari- fication. In regard to mortgages, the Shri S. A. Dange: I want it so that the profits go to the State. hon. Deputy Minister said that the past experience has been bad and therefore, we are not going into that. Shri Morarji Desai: There is no permanent policy of negation with the DISCUSSION RE: REPORT ON THE LIC. As soon as they are able to WORKING AND ADMINISTRATION hold together, I think they will ad- OF COMPANIES ACT vance money. I do not see why they should not do H. M.r. Chairman: The House will now 15 hI'S. take up the motion by Shri Ram Kri- shan and others relating to the Report Shri Mahanty: What is meant by on the working and administration of "any other investment"? the Companies Act. -- piffiu tfpn re $9 NOVWJBW i$u58 Report .on the Working jy fi and Administration of Companies A ct : I beg to move “In course of the adiy nistraltion of the sections dealing with investigation, “That the Annual Report on the the following difficulties were experi- working and administration of the enced: Companies Act, 1956 for the year ended 31st March, 1957, laid on (a) it was found difficult to get the Table of the House on the 31st suitable persons for appointment as March. 1958, be taken into con- inspectors...... sideration.” (b) where the officers of the company or its managing agents ? n m fr r v?. fW £ tfr ztt’t % deliberately withheld from the in- sft »if t, T*rft spector, on one pretext or another, relevant books of accounts or dec- f» "Wffa %% fWt? % lined to appear before him and to sfasR % ;Tnjr **fr * i *p t give evidence the new act provided no power to compel the offenders ? 5 *3 # 3PT >?T? vr w W>TF( *FT to do so__ All that the inspectors y tfrrsT # »Tf n'T ** *T W could do was to file complaint to ?r^r «rr 7*tt fa n ? T rj* r w punish the offenders as if they were guilty of contempt of court. ^rrfir'- fa STT frvfxrfiT^ H % stnrTTT'TTf^rTR % “227 public companies were re- m ¥ t t -?*& if?w yfrw *fr?r *t t ported to have converted them- selves into private companies in order to escape from some of the restrictive provisions of the Act.” ?*T% ? fT H fnFPT ?TTfa*R ^ 7 7 far to # *ftr ?;fa ffj^r Tf^PT A ?*T 3 FT % fan; *TPT TZ *ni>Tf faq JTT ^ I ** *PTFT * Tfarenr 3f> ^rn fa ^ HW, e z tr %?TT # frr?T5 ?*T VHT ^ r 577 ’TTH % falT =5nfar I TTR^aR- fr^T fafj=R^A >ft TTlft HITt £ I itr Hwt TT 3RT?r ^?r f IT f *T ?T?T spt « tt?t f??T STT?#? T t q r fh r T T t ft *PTT fo f StT? I ? R T I 9HT *T Tt 5ft*T ^IW com pany 5pr 3fr 4 fa*rfa% 1956 5? ^ft ^IfcTT A SFSRT ^T^TT j? fa n?. Tf7 % fa f *T Vf*Z % TSrfsR: f^Tsfpr $ *pfffa ^T ^R: % «P?T 5f5T ?t * t rTnrr»T?fiT fs^T 7, I "FTP** | f^RVT8mcnd ^7% ^T 5TFTcT t *flT 3«fa asrr jft SliR «rt flnraai : (farrsrm?) : t ^ $ftft i ^ A jtw tt » r t ^ t i g ? ? f a t «PT 5T*ft VR&K « r f a fa*ft 'rf'sTO *FW % forr ?rt/flf *t Mr. Chairman: The bell is being r u n g ------% fatrtrtft ^rqsfr <^5TPfr Now, there is quorum. The hon. 3TR fispfWT STfar «Tfs5f*F ^UT % fatr Member, Shri Ram Krishan may con- *nr ft 1 «rn^fr % 3?R apr? ?*T tin u e . faFT *T frft^fBR ^ fftT ^T%tx | ttst **»?: ^nrrrfir 1 sfr A 4 ?*T % QJi if 'Tf+H' ^ ^ rfr «tt fa rfraft *rft ^anffa ^ R T ^Tf^T fsp ^ ^ 5?r f?Frft# if ^ fa jt^ >fl ^nfa W ? 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A v?*rr ^rr^iT j[ fit W * *ft JTfSr 3*n *rm v?:f*p im -xm Mr. Chainun: Motion moved: ^«TRCT «WT *TT * f f T W t f* R R T “That the Annual Report on the fWT 1 working and administration of the 254 (Ai) LSD—7. *205 Discussion re 29 NOVEMBER 1988 Report on the "Working 220f> and Administration of Companies Act [Mr. Chairman] Companies Act, 1956 for the year Act or other taxation measures that ended 31st March, 1957 laid on have been responsible for the new the Table of the House on the capital not forthcoming to the extent 31st March, 19S8, be taken into that it was doing previously? consideration.” Shri Bimal Gfcoae (Barrackpore): It I should also like to refer you to is a matter of some satisfaction that certain other defects in company the report which we are discussing administration that are pointed out in gives us much valuable information, the report, namely, a tendency of which phenomenon, I concede, is in- public companies to convert them- dicative of the fact that the company selves into private companies, or of law administration is working some- managing agents into sole selling what better than it was doing before agents. It is stated in the report that 1956. 1 am aware that it is not say- this development is being watched. ing much because before 1956 the About ten months have gone by. I company law administration was not should like to know what has been only lax, but more or less absent, and the result of such investigation, and I am also conscious that much yet re- ’whettret any action & ttsntunptated mains to be done There is also reference to untenable I want first to draw your attention practices in respect of mter-company to a few observations m this report, investment. I should like to know and then make a few suggestions what the position now is and whether In Chapter II in regard to the re- Government propose to extend the gistration of new companies, it is scope of control now exercised only stated that the fall in registration is m regard to inter-company invest- due to certain factors, and the report ments under same managements to expects that the tendency will again investments by one company in any be for more registrations later on. I other company do not understand the underlying im- plication of that observation, becausr I believe one of the purposes of the Then there is also a reference to new Companies Act was to prevent difficulties encountered in regard to the growth of mushroom companies the conduct of investigations into the and we should have expected that the affairs of companies What is the registrations would decline) and it is Government’s proposal to overcome not a bad thmg that there should be those difficulties? a decline in new registrations as such Moreover, there has been a complaint Although we enacted a very elabo- in some quarters that there has been rate Companies Act m 1956, I believe less private capital forthcoming in it has to be conceded that it does not the private sector, and that it is due appear, compared to the position to the rigours of the Companies Act prior to 1956, either to have improved But that also is not, to my mmd, a substantially the quality of manage- very relevant criticism, because the ment or the consciousness of share- capital that was required either for holders about their rights. I want the private or the public sector was to say a few things on both. First, I provided for m the Plan, and if less shall take up the question of share- was provided for the private sector holders’ consciousness That share- compared to earlier years, there would holders evince very little interest in be less capital raised. The question the companies whose shareholders they is whether the capital that was need- are is borne out by the fact that spe- ed in the private sector was coming cial resolutions are passed without forward, and if not, what are the any difficulty. As a matter of fact, a reasons? Is it the new Companies reference is made to that phenomenon 2307 Discussion re 28 NOVEMBER 1958 Report on the Working 2208 and Administration of Companies Act in the report itself At page 19, the way, there is a danger here also, but report says if they are well run th«V will be very helpful to the shareholders “The ease with which such re- solutions are reported to be pas- The third suggestion 1 woluld like to sed and the comparatively few make is that Government may consider cases m which such resolutions the appointment of an officer at the have been thrown out are a point- office of every registrar, wherever er not so much to the confidence there is a registrar of companies, who m company managements in will be like a public relations officer, general as to the need for better < nd v. host duty it would be to give awareness of their rights and service to the shareholders Most of responsibilities by shareholders” the shareholders are now ignorant of their rights Take, for instance, the In this situation, I have a few sug- case of the rebate of income-tax Many gestions to make as to what is to be shareholders are entitled to it, because done the income-tax wh ch a company pays ts at a higher rate, but that rebate U not taken advantage of by them I should like the hon Minister to because the> do not know the rules; consider whether this elaborate pro- and of course, Government gain But vision in regard to special resolutions, still it is the shareholders' dues, and if particularly, in regard to over-aged there were somebody who could edu- company directors and appointment cate them and tell them what to do, I of relations, is still necessary, and believe they would be benefited Of whether that purpose might not be course, if such a public relations officer served by an advertisement in a were appointed, it should be advertis- newspaper, with the added proviso ed widely, and the functons he could that if a certain percentage of the perform should also be advertised shareholders, let us say, two per cent or five per cent, should take an objection then a special resolution When wc come to the question of will have to be passed For, this pro- managements it is agreed that what is vision creates a lot of difficulties and necessary is a continuous watch on expense for companies I would like management A post-mortem, and that the hon Min rter to consider whether too \ery overdue post-mortem is . it is worth while having this provi- often useless What this Company sion even now Law Administration is doing is m the nature of what the Publ c Accounts The second question is how to make Committee does and that is not very the shareholders more conscious of helpful We have always to keep a their responsibilities One solution continuous watch on the companies, I would be to sponsor shareholders' believe it is necessary not only that associations in all areas which are there should be an adequate orgarusa- industrially important I do not know *)on for that, but also that the organi- what Government can do about it Of sation which will be keeping that course. I am sure they would be will- watch should have charge of all ing, and they would give all assistance agencies dealing with the corporate But if they can do something to help sector as such That is a very sponsoi these associations, that would important matter be a welcome thing I know that it maj also have a bad effect, because, When the Companies Bill was under sometimes, the shareholders' associa- discussion, there was a lot of contro- tions may intimidate private com- versy as to what sort of administrative panies, as we know some not-well- machinery should be set up for over- conducted trade unions sometimes inti- seeing the working of the companies. midate their employers In the same There was a proposal for the setting 2209 Discussion re 29 NOVEMBER 1958 Report on the Working 2*f 0 and Administration of Companies Act {.Shri Binal Ghose] up of a statutory organisation. There It has become very important today was also an alternative proposal for a because we are pursuing a particular department to be in charge of that economic and social policy. Whether administration. For reasons which that policy is being fully implemented were explained by the then Finance should be looked into by some cen- Minister, the second alternative was tralised agency. Company manage- accepted but he had given an assurance ment has become so important that it that company management and all is not merely a question of share- related subjects would be dealt with by holders today but it is a question of that department, whatever the depart- the utilisation of our scarce resources. ment might be; call it the Department Then, it is a question of assuring suit- of Company Law Administration or able conditions of work and adequate call it the Economic Affairs Depart- scope of employment to the labourers. ment, that is immaterial, again, it may So, it also impinges on the question at be attached to the Finance Ministry or employment to the Commerce and Industry Minis- try, that is also immaterial What is necessary is that all the agencies deal- Let us take this case For example, ing with companies should be brought so many textile mills have closed together under one control. The assur- down And why are they closing ance which the then Finance Minister down9 Can there be no agency to see had given was in the following words' in tune why they are closing down? “The responsibility of this Some may be in financial difficulties, Department, namely the Company but many closures probably are due to Law Administration will include management defects But the manage- not only the administration of the ment defects are detected long after Companies Act but also such other the closures take place But if we institutions as are closely connect- had an institution which could oversee ed with the operations of the com- all the time how the managements are panies as far as stock exchanges, functioning, then I believe that not financial corporations, capital onl> can we save much in the way issue control etc are concerned.” of our industries but it will also have a good effect on the employment prob- When the Department of Company lem I believe that the question of Law Administration was started, I law and order in company manage- believe most of these institutions were ment today is as important as it was under the control of that department. considered to be by the old British Since then, many of them like stock Government in the political sphere. exchanges, financial corporations, capi- The question of economic development tal issue control etc. have been taken is supreme today Therefore, I feel out of its scope of activitie-* I do not very strongly on this point, and I understand why, because the procedure would like to know what the attitude lhat we had established was a whole- of not only the Minister but of Gov- some one, and that obtains also in ernment 15 to this matter, because so foreign countries, whether in Great many departments are dealing with Britain or in U S A In U S A there companies. Now, some are carrying on is a statutory body; m Great Britain investigations through other depart- it is an administrative department; but ments Of course, the Commerce and whether it is a statutory body or an Industry Ministry also carries on inves- administrate department, the prin- tigations, as for example, under the ciple is accepted that it is desirable Industries (Development and Regula- that the department concerned should tion) Act. I do not know whether that deal with all the agencies that have is also done through the Department of anything to do with the corporate Company Law Administration If not, sector there should be a liaison between the 22i i Dtouuton re 29 NOVEMBER *958 Report on the Working 2212 and Administration of Companies Act agencies carrying on such investiga- time, which would meafi that there tions because unless all information would not be so much waste of capital about companies is pooled together in nor unemployment which closures one particular place, I do not think occasion we shall have a good control over companies and be able to rectify Therefore I would again draw the defects in management and assure attention of the Minister to this good management, that is necessary in important problem and give his serious order to implement the Plan that we thought to it have taken in hand, and also to assure the success of the social and economic policy that we have in view There- Shri Naray&nankutty Menos fore, I think, that this matter deserves (Mukandapuram) Normally in a dis- very great attention, namely, that not cussion of this kind only the subject- only all agencies should be brought matter of the Report is discussed— together but there should be a conti- shortcomings of the Report and also guous watch Qjestaux aspect* highlighted m. ttw Report But I submit that in this case In this connection, I would quote the whole subject-matter of the from the observations of the Company Report is so important and it is so inter- Law Committee which explained the linked with the entire company law necessity for continuous watch It says m general that the discussion cannot strictly be confined to those points raised m the Report and those happen- “The law can only provide ings during the year the company law against abuses which have already administration was functioning appeared and are widespread The law which is appropriate to one set of circumstances becomes out Going back to the past history of the of date when those circumstances Companies Act itself, after a long and change It is not beyond the wit protracted debate covering almost 55 of man to circumvent the law hours, this House passed the Indian The weary task of reform must Companies Act You will find from the begin from where it has ended It trend of the discussions during the is only an appropriate organisation debate the anxiety of this House was whose function is to maintain a not to have certain technical provi- close watch over the working of sions incorporated here and there, but joint stock companies that can the unanimous opinion of the House oversee the operations of the was that the maladies which existed Companies Act and can keep track prior to 1956 should at least be partial- of new tendencies and develop- ly controlled or to an extent put an ments and recommend suitable end to After the Act came into force changes in the existing law either after that organisation which was the to nip the growing evils m the bud custodian and watchdog according to or to remove hampering restric- the words of the then Finance M'rns- tions " tef. administered the company law for a year, this is the first opportunity the I ask the hon Ministei as to whether House has to test the real effects of the they have this organisation today If meritorious provisions of the Act which they have not, do they consider it from all parts of the House were the necessary to build up such an organi- subject of criticism Assurances after sation, and if so, whether they will do assurances were given bv the then something soon7 Because so many Finance Minister that according to his companies are closing down today on convictions and according to Govern- account of bad management, I believe ment’s opinion, the provisions incorpo- fhe defects could be dealt with pi ope r- rated in the Bill at that tune were suffi- ly if these cases were taken up in cient to put a check on the maladies 2213 Discussion re 28 NOVEMBER 19S8 Report on the Working 22x4 and Administration of Companies Act [Shri Narayanankutty Menon] existing in the administration of com- succeeded in putting an end to or at panies throughout India at that time. least in controlling the maladies that Further it was emphasised that in existed as far as the operations of order that the overall policy of Gov- limited companies prior to 1956 are ernment and Parliament be implement- concerned? When we look into the ed, in order that there should be a history of the past one or two years check on the activities of private capi- after 1956. we find that even after the tal, in order that there should be a incorporation of these laudatory pro- certain formulation in investment and visions in the Act, nothing has been also in the way in which private capital done in that respect and private capi- functioned in this country, the Com- tal, as is invested in the private limit- panies Act would be a weapon in the ed companies, is going on unbridled on hands of Government. In the light of its own course, and those maladies that these assurances and laudable objec- existed in 1956 exist today, except for tives of the Act, the House should, the fact that there has been a skin- when we are considering the first deep scratch made. Report of the Company Law Admin- istration, review the whole aspect and see how far those promises and objec- I will first deal with foreign com- tives have come to successful fruition. panies. When questions are put about foreign companies, Members of the The primary principle when amend- Cabinet rise up and say that it is ing the Indian Companies Act com- impossible to understand the real prehensively was first of all, to con- financial state of affairs of certain form the functioning of these com- companies. When detailed question- panies to the declared policy of Par- ing is done on the accounts of the liament the oft-repeated and sometimes foreign companies, the Cabinet M nis- too much repeated socialist pattern of ters say that they are helpless in the society. It is not possible for any gov- matter because the only obligation of ernment or society to leave such a the companies under the Indian Com- large chunk of capital which plays an panies Act, in the words of the Min- important part in the formulation of ister of Mines and Oil, is to deposit a economic policies in the country to a piece of paper called the balance sheet certain state of anarchic affairs in the with the Registrar of Joint Stock hands of private capital which has goi Companies, from which something may nothing to do with the Plan. There- be made out or at times nothing could fore, in the interest of the State itself, be made out. How much has been in the interest of the successful work- earned by the company in a particular ing of the Plan itself, there should be year, how much is the expenditure a certain amount of civilised and incurred, how much tax is paid, how democratic control over private capital much has been paid to the foreign in this country. employees and how much to the Indian The second objective was that the employees—all these details could not interests of the small shareholders be had even for the purpose of infor- should be protected by checking the mation in the Central Intelligence of activities of directors who hold a very this country. large amount of shares, that is, the oft-repeated tyranny of the directors I can submit before the Rouse that should be put an end to. The para- these foreign companies, in spite of the mount consideration should be: how provisions in the Act, have no uniform far theBe objects have been fulfilled method of keeping accounts. With by the new Companies Act? particular reference to certain ques- First of all, how far, by the intro- tions answered here, we have come to duction of the new Act, have Govern- understand that especially in the case ment succeeded or this Parliament of oil companies which control the 2215 Discussion re 29 NOVEMBER 1959 Report on the Working sil 6 and Administration of Companies Act maximum amount of foreign trade in was expected to have be Shri Narayanankutty Menon: At All these maladies are mainly due least you might rule that the time to the irresponsible control over the taken by interruptions will not be private industries. I am not submitting counted that the whole thing could be nationa- lized m one day, but in consonance with the declared policy of the Gov- Mr. Chairman: I have already said ernment, if the Government want a that the hon. Member should close certain extent and quantum of control, now. if they really want to exercise that control, if they do believe in their Shrl Narayanankutty Menon: 1 shall policy, that amount of control could conclude bv saying that this private not be exercised as far as this parti- industry which is really controlling a cular Act goes at present. If they large sector of our economy, should really want to exercise that control, be effectively controlled. It should be certain amendments will have to be put in its own place in the socialistic made to the existing Act. economy of the country. Till the socialist pattern is worked out com- pletely, there should be stricter control which is absolutely necessary. Further, Further, the Company Law Admi- the Company Law Administration nistration should be the real watchdog should act as the watchdog of the of the private capital which is so unruly elements which are let loose essential as far as our Plan is con- on our economy, and until such time cerned. and as far as our entire as the Government and this Parlia- national economy is concerned. Even ment ends the private sector, the tkough, because of expediency of the Company Law Administration should Government’s policies, today, the Gov- art as the watchdog over the private ernment decides on the principle of sector, so that they will not trample mixed economy, as long as there is upon the national economy hereafter. the socialist pattern of society, private capital here will not be in favour of Shrl Aehar (Mangalore): Though socialism, and...... the new Act has worked only tor a 2231 Discussion re 29 NOVEMBER 1958 Report on the Working 2232 and Administration of Companies Act year and it is too early to pass any are complete advocates of the public judgment as to the effect of this new sector and who would like to have a Act, I fear that the facts disclosed in funeral oration for the private sector,, this report gives rise to certain grave might think that the situation is very doubts. The Opposition Members good, still there are some of us who would like to see that private limited feel that the private sector has also companies are wiped out and probably got some scope in this country. they would like to have the funeral oration to the private sector. From 16.25 hrs. their point of view, they think that [Mr . Speaker in the choir] the control is not sufficient, but seeing the facts disclosed in this report, one i am certain about this point. Govern- feels certain grave doubts as to what ment are in favour of private sector has happened to the private sector, and public sector. From that point of especially with regard to limited com- view, I would say these figures are panies. Whatever my friends from thought provoking. Not only that. It the Communist side may say,' at least may also be remembered that when the Government feels that there is a tve look into the capital invested after certain scope for the private sector. this Act came into force, we find that it is very much less. In addition to' that, even in the figure are included a large number of companies spon- The report clearly discloses that the sored by the Government itself. Even number of registered companies are including that the capital is not very decreasing. Not only that. The capital much. I am referring to page 10, "The invested is also decreasing. With size pattern". If you look into the regard to that. I might refer to Table table on the next page about the size- I, because it gives all the figures. In distribution of companies in 1954-55, 1954-55, the figures are number of 1955-56 and 1956-57, you will find that public companies registered 211, pri- companies having an authorised capital vate companies 992 and total 1203. In of Rs. 1 crore or more during 1956-57 1955-56, the figures are public com- was 28, as against 42 in 1954-55. Even panies 186, private companies 1262 and here we must remember the more total 1448. Let us look at the figures important flotations with an authorised subsequent to the coming into force capital of Rs. 5 crores and more are of the new Act. The new Act came the National Coal Development Cor- into force after almost a revolutionary poration Private Ltd., Heavy Electri- change after a century. The register- cals Private Ltd., Neyveli Lignite ing of companies started sometime in Corporation Private Ltd., Western 1853. It was to a certain extent modi- Shipping Corporation Private Ltd., fied in 1930, but more important Indian Rayon Corporation Ltd. and so changes were brought about in 1956. on. If we exclude this capital we We know that a committee was ap- pointed as early as 1952. The committee can realise what exactly the private sector is prepared to invest after this considered the whole matter for a long Act came into force. The Government, time and the new Act was passed in rather the report, refers to these facts 1956. The now Act came into force on 1st April, 1956. in page 9. I will only read a portion: (if it, and not the whole. It says: After this Act came into force, the “The small deviation in th# figures for 1956-57 are: public com- percentage of new companies panies 84, private companies 764 'and formed cannot be attributed enti- total 848. So, the total number which rely to the greater degree of dis- was 1448 in 1955-56 had come down closure and control imposed on to 848 in 1956-57. As I said, though public companies and private com- the Communists and other people who panies which are their subsidiaries. 2231 Discussion re 29 NOVEMBER 195S Report on the Worktng 2234 and Adminiftration 0/ Compunitt Act [Shri Achar] The trend is, however being be certain difficulties. I do not say studied. There was also a tall in that, in our present set-up of things, the number of companies regis- there should be no control over the tered in 1956-57, as compared private companies. The very basis of with those registered in 1954-55 the Act was also that we want control and 1955-56, although their aggre- over them. At the same time, we gate authorised capital exceeded have also to consider this aspect of the corresponding figures in 1955- the question. Why are these private 56. The fall in the number of individuals not coming forward with companies registered in 1956-57 capital? How is it that companies are is attributable to several causes. not being registered as they were for- Exaggerated apprehensions about merly? I do not feel that the reasons the provisions of the new Com- given in the annual report, that the panies Act may have led to a business people are ignorant people, rush of registrations during the people who do not know the matter last quarter of 1955-56, just before and that is why they are not coming the enforcement of the new Com- forward, would be the proper reasons. pantes AcV ratvnaYty affect- We are, as the policy of the Govern- ed the number of subsequent ment shows, in need of capital. There registrations. Company promot- is no doubt about that. We want even ers and others interested in cor- to attract foreign capital. I remember, porate activities may have also the other day, the Deputy Minister wanted fully to understand the made a statement that foreigners, in- ramifications and implications of cluding the Americans and British, the new Company Law before are willing to invest money in this forming companies under the pre- country. For our development, we sent Act. Further, the limit set want money, not only from our own on the number of companies with people, but from foreign countries which a managing agent or a also. Our taxation laws, our Company director could remain associated laws are coming in the way of getting may have also partially encour- sufficient capital. I do not say, all of aged the recent tendency to set a sudden, we should change or any- up new departments of existing thing of that kind. My submission is companies rather than incorporate only this. This requires considerable new companies." amount of thinking. I do not think that this going down of the number of companies or this withdrawing of the 'Whatever it be, one thing is certain. capital is simply due to any ignorance. The private sector is getting very Capital is shy. Our economy has both shy. There is no doubt that less a private sector and a public sector. amount is being invested by them. From that point of view, I would like The Government, at least this Report, the Government to consider this seems to think that it may be due to matter seriously. the fact that they did not know the provisions of law or it may be due to the fact that when they knew that a Another aspect of this matter is new Act is coming into force they further illustrated from the facts dfs- were not prepared to register the com- closed regardHg winding up of several panies. With all respect, I would like companies. 7 would like to draw the to submit that industrial magnates or attention of the House to page 41. people who invest and promote these During the year, that is, the year of companies are not such people who do report, 8S3 companies were reported to not understand matters. Mv submis- have gone into liquidation. Of these, sion is that it is not because of these 22S cases were of members’ voluntary facts that investments are not made liquidation, 59 of creditors’ voluntary In registered companies. There may liquidation, 47 of compulsory liquida- JDimiMfcm re 29 N 0 V S M B S R 1998 Report on the Working 2236 and ^ministration of Companies Act ion and 4 of liquidation under the Mr. Speaker: Unless the hon. Mem- upervision of the Court. In addition, ber stands up, how can 1* know? 04 eonpinitt ffcrt struck off the egister by the Registrars of Com- Shri A. C. Guha; I stood up several xmies under section 960 of the Com- tWies. mies Act, 1986, and 141 were report - id to have been finally dissolved after Mr. Speaker: 1 do not know why he lie completion of the winding-up did not catch the eye of the Chair proceedings. Certainly, this is not a irery happy state of affairs so far as Well. Shri Guha and Shri Chaud- the position of these companies is con- hun. And then, how long will the eemed. I know a Committee has been hfi:j Minister take? already appointed under the Chair- manship of Shri Viswanatha Sastri, an Shri A. C. Guha: I think both of ex-Judge of a High Court and his them will speak. report has also been circulated to Members. That Committee has been Shri Satish Chandra: I will speak requested to suggest certain amend- at the end and take about 20 or 25 ments. But, I find, in the report, the minutes. Twenty minutes, I ibiak, Committee restricts itself and restricts should be enough, but the Commerce its scope to suggest amendments only atid Industries Minister wants to in- with regard to minor changes. That tervene for five or ten minutes. Committee does not seem to go into the question of policy. I would appeal Mr. Speaker: Both of them will take to the Government as well as to the 30 minutes. We are rising at 9.30 Minister to consider whether the posi- Therefore by 5 O’ Clock these hon. tion now we are in with regard to Members should finish. these private companies, does not Shri P. S. Patel (Mehsana): The require careful consideration. I do report gives some idea about the not for a moment say that companies administration of companies. It which are maintaining false accounts itaakes happy reading and at the same or committing fraud, or making huge time unhappy reading. The happy profits and not allowing anything to reading is that we are having good the servants, should be encouraged. control over public and private com- That is not my view. At the same panies, and when there is any mis- time, we should not entirely sap the appropriation or any offence commit- source of the private sector from our ted, we look into it, prosecute them point of view of economy of both a %nd see that in future no such thing public sector and a private sector. I Happens. would submit that this aspect should be considered. Though one year by itself may not be sufficient, I submit, We cannot do away with the private sector. We know it has served the there are certain indications and I country well in the days of the Briti- appeal to the Government to consider shers and thereafter. We -are putting this aspect. steps in the public sector, but we can- not do away with the private sector. Aa Hen. Member: What is your Naturally there would be misdeeds in concrete suggestion? the private sector as well as in the public sector, and because there nay Mr. Speaker: Shri P. R. Patel: Be- be some cases here and there, we can- fore the hon. Member begins, may I not condemn the private sector know how many other hon. Members altogether. want to speak? Though after much labour we had Slut A. C. Guha: My name is ap- the new company law, one year’s ex- pended to the motion. perience shows that it requires some 284 (Ai) LSD-8. a»37 Disaunon. re 29 NOVffiMDBBB 1968 Report on Hhe Working 223? and Administration of Companies Act {Shr P. R. Patel] modifications,r-some changes here and under liquidation, and the reply was there. It requires to be revised. I that as the company under liquidation hope the hon. Minister in charge will was registered under the old law, it look into the matter. was outside the scope of Parliament and that it was a State subject. That 1 0 8 hrs. is nice and good, but once the Com' panies Act is within our purview, we [P a n d i t T h a k u r D a s B h a r g a v a in the must change the law so that we may Chair] look into all these things. The Jenak Co. Ltd. is in liquidation for the last At page 41 the report says: eight or ten years. Some lakhs of rupees have been collected by the “Section 463 for the first time Liquidator, but that is not distributed, gives statutory control lor the and we cannot do anything. In para Central Government over the 92 of the report, the Government alao work of Official Liquidator. The feel that something must be done. exercise of these powers will en- I hope Government will do that as sure greater despatch in the dis- early as possible. posal of liquidation proceeding and greater control over accounts Then, we find that some public of liquidations.” companies are turned into private companies. That is just natural. I However, there were certain com- do not complain against it, because panies registered under the old law under the Companies Act, if the num- and there are certain difficulties. I ber of shareholders is less than 50, and shall read out paragraph 92: they so choose, they may change the character of the company from public “As regards the administrative to private, because, in private com- difficulties experienced by the panies, they have got certain conces- Government, the most important sions, so far as control etc. are con- was the one of exercising adequate cerned. After an, it becomes an control over the work of the individual company or the company of liquidators of companies which a family, and the powers regarding had gone into liquidation under public companies cannot be exercised the 1913 Act. Clause (ii) of sec- in the case of private companies. tion 647 of the 1956 Act stipulates that, except in regard to the com- However, I would like to suggest panies’ liquidation account men- that we must enquire into the reasons tioned in sub-section (7) of sec- why public companies have been turn- tion 555, the other provisions of ed into private companies and why the present Act relating to wind- the tendency is increasing, and we ing-up would not apply to com- should consider whether we should panies which had gone into liqui- have some change in the law, so that dation before the commencement the tendency may not be on the in- of the 1956 Act.” crease. We look rather with suspicion at And as many as 2,280 of such com- the private sector. We may have panies are under liquidation. The the public sector, and we should liquidators are there, but the Central invest more and more in the public Government has no control over them, sector, but looking at the private sec- nor can Government ask them to finish tor with suspicion makes the private the matter early. sector rather shy in regard to their progress. If there be some mistakes Some days back I put a question here and there, they may be prosecut- regarding one company registered in ed. I do not aay, no, to that, but it Is Calcutta, i.e., Jenak Limited, which is not proper to give bad names alwaya. 1*39 Pwcuwion re: 29 NOVEMBER 1858 Report on the Working 22*0 and .A din m titration of Companies Act u Alter all, we require industry in our help us to know what contribution is country, and the private sector serves made by limited companies to the the country that way. I would, there- funds of political parties. fore, submit that the administration should not see with a suspicious eye Shri A. C. Guha; The working of at the private sector. the Companies Act can be reviewed oiily in the background of the purpose for which this Act was passed. There Then, there is a clause in the Com- was a Company Law Committee which panies Act under which directors are made certain suggestions. Most of required to furnish names of their those suggestions were accepted. The near relatives. I do not say it is bad. Committee itself said that acceptance But I would suggest that in Govern- of certain broad social objectives and ment companies also, the managing some recognised standards of behavi- director or whoever be in charge our was the purpose of this Act. should be asked to furnish names of While piloting the Bill the Finance persons in service, if they are related Minister also mentioned about the to wiste Wk ttsa attainment of the ultimate end of a Government. The tendency is that social policy. He also mentioned that even foreign companies engage some tftis was a question of balancing the near relatives of the officers, and interests of the private sector with the sometimes, Ministers; and some pri- social interests. So we should con- vate companies of Indians also engage sider the report of the working of the such persons. The result is that they Companies Act during the first year get the monopoly to go on with the irt the light of these objectives. concern in the way they like. One objective is that there should I would suggest that tht* public not be concentration of wealth in a companies, private companies as well few hands. It is also the objective of as Government companies should be tne Second Plan that the disparity asked to furnish lists of employees between the richer and the poorer who may be related to some persons, sections of the people should be m the government office and so on. reduced and there should, more or less, be equal distribution of wealth, There is one thing I would like to at least equal distribution of opportu- mention. The industries must also nities. In the Report, the first thing treat 'abour fairly. Labour also should we find is that the number of com- have their dues. I have received a panies has gone down during the first complaint that one textile company in year, but the share capital of these Bombay State has engaged a near companies is higher than that in the relative of a union worker. Once this previous years—though the number Is is done, the Company is saved from rtiore than 35 per cent less than the the duty of doing justice to labour. previous year. Even if we exclude a The result is that the old labourers few government companies, I think have been removed from the service tjie trend is towards having bigger of the company and new ones engaged. companies with bigger share capital. It I would suggest that in the next has been said in the Report that 28 report that may be put before us this companies would cover about 81 pe& '^formation may also be furnished. cent of the entire share capital of all the companies registered during the Lastly, the Report does not contain year. Of course, out of the 28 com- •me piece of information, and that is, panies some were government com- contributions made by private and panies. All these 28 companies would public companies to political parties or have about Rs. 161 crores out at to elections. I would suggest that dis- fts. 211 crores of share capital of all the closure of such information would companies. Excluding the government 2Suft ftie«tiw« it 99 NOVMouJltfi 1988 Report on the WorkhiQ ztfyi and Administration of Companies Act [Shri A. c. Guh*] companies—5 or 6 of them—the other well-qualified inspectors. Apart from bigger companies would have a very that, their powers are limited. If the bigger share of the total share capital management declines to submit the of the companies registered during this reports, they can only file cases in the year. This is a trend which would go court which means that the manage- to show that nothing has been done ment may carry on f&r two, three or to check the concentration of wealth even four years with the work of in fewer hands. doing all sorts of mischief. Neither Government nor the Inspector has got My friend, Shri Bimal Ghose, is any authority to compel the delbi- rather happy at this trend because he quent managing authorities to submit report or surrender their books or to has said that mushroom companies take some interim measures to pre- should not be encouraged. But small- vent them doing further mischief. er companies need not necessarily be mushroom companies. I think Shri Ghose is also connected with some of In this connection I may also men- the smaller companies which cannot tion about certain provisions for safe- be called mushroom companies. The guarding the interests of the minority policy of the Government should be shareholders. There also the report to see that poorer people, people with does not give any encouraging picture. modset means, are allowed to play I feel the process is somewhat rigid their part in the industrial develop- and formal. I know of several cases ment of the country at least as long where the minority shareholders as private enterprises in this field is approached the Company Law Depart- allowed. (Interruption.) ment or the Regional Registrars but could get hardly any protection or relief. That aspect should engage the During this year about 1,041 com- attention of Government and they panies have gone into liquidation out should try to give real protection to at which 887 were with a share capital the minority shareholders against the and the others were associations with- mischievous activities of some people out any share capital—not for profit who might have a majority of shares earning. Total share capital involved or have covered the shares. Then, In these companies is Rs. 759 lakhs. cases are sent to the Court for not I do not know what has happened to holding the annual general meetings in the shareholders of these companies. time or for not submitting the balance I think liquidation proceedings even sheets in time or for not preparing under this Act are as tortuous as you the annual reports in time or for other can possibly imagine. things. There also I find the Court is taking a very lenient view. Out of I would like the hon. Minister to 573 cases, the penalty imposed comes say something about the fate of the only to Rs. 28,954 in the form of fines. shareholders of these nearly 1,000 It is a little over Rs. 50 per case. In companies who invested about Rs. 760 the now famous Mundhra case* we lakhs—to be accurate, Rs. 759 lakhs— have seen several cases against him. of their hard-earned money. How He paid the fine and came out to enjoy luuch would they get back as a result all his adventurous pursuits in the of these liquidation proceedings? industrial field. In the Act, there are some provi- I can understand it is difficult for dtas for investigation into the the Government to say anything to forking of the companies. In the the Court but still it should be men- report we find that it is hardly pos- tioned that the Court should take not sible to get the adequate number of so lenient a view of the violations of 3343 Discussion re 29 NOVEMBER 1958 Report on the Working 3744 and Administration of Companies Act this Act. That would practically going on even now. Oijly about two nullify the purpose for which the Act or three days ago, I received the copy was passed. If necessary the Govern- of a telegram to the Minister of Com- ment should bring forward an amend* merce and Industry. Only this, morn- ment to raise the penal provisions of ing I have received the copy of a long the Act so that the court may have letter sent to him. It has been stated not so low a limit of punishment. The there that practically the entire capi- courts generally inflict the minimum tal of this company, a very important punishment which is very low at pre- and useful company in Calcutta, is sent. If necessary, those provisions held by members of the same group or may be amended to raise the minimum same family and they have been play- limit of punishment so that adequate ing with the funds. Now the company penal measures may be taken against has come almost to a crisis. This is a the violators of the provisions of this very useful company. I do not like Act. to mention the name, but I shall pass on the papers to the hon. Minister, and Then, there is the creation of loans I hope he will take necessary action to directors. 1 find a very dangerous m this matter. This will show how concession allowed by the Department the managing authorities have been m some cases Within one year from wasting public money and have been the commencement of the Act. the playing with some very useful indus- loans had to be approved or to be trial units. repaid. But in many cases, the loans 17 hrs. have not been repaid and “in order to obviate the hardship fresh loans for In this connection, I should also like limited periods have been allowed” to say that along with this Company That means the same loan has been Law there are other matters connected made to appear as a fresh loan to with it which should have been under these directors. I think the Depart- the Company Law Administration. ment should .not be a party to this This very case of the Company which attempt to by-pass the provisions of I have just mentioned has also been this Act. This is a bad precedent and referred to the hon. Minister so that this should not be allowed any further he may take certain action under the Industries (Development and Regula- The inter-company investment tion) Act This is a fit case also for which was one of the mam allegations the Company Law Administration to against the private enterprise;—this tackle. When this Department was point was very much raised when the formed certain other things were law was discussed—has been going on allotted to it. Suddenly those subjects even now. Several cases have been have been removed. It was not that mentioned in this report We have those subjects were given to this also reports from other sources, apart Department without any reasonable from what are mentioned here. The basis. That was on the recommenda- inter-company investments, an un- tion of the Company Law Committee healthy phenomenon in the economic and also according to the suggestions life of our country, is still going on. of the Members of this Rouse. It has Along with this would come the been mentioned in the Company Law question of the cornering of shares Committee's report that stock One case has been mentioned here in exchange, capital issue and some othgf which the beneficial ownership in res- things should be under the control of pect of 79,359 ordinary shares and also the same department or commission a number of preference shares stood whichever may be put in charge of the in the names of individuals “belonging Company Law Administration It is to an identifiable family group”. In mentioned in the report: another company, about more than 66,000 shares belonged to the members “As we have already said, it of the same family. These things are would be impossible for the com- 2245 Discussion re 29 NOVEMBER 1998 Report on the Working ^ and Administration if Companies Act [Shri A. n . Guha] mission to function in isolation As regards the question at pub- from the main currents of econo- lic companies being converted into mic policy and administration and private companies, the matter is before indeed its usefulness and effici- us, and I do not want to say much on ency would be greatly impaired if that at the present moment But, it did so." as it has been said in the report, we are keeping a watch over it, and Sir, I do not know why an arrange- I can assure the House that in no case ment which was made on the basis shall we tolerate any kind of subter- of this recommendation and on an fuge in regard to these conversions. assurance given on the floor of the More than that I shall not say at House by the then Finance Minister present, but we will certainly bear in was suddenly changed and some other mind what has been said here in the arrangement has been made. Even if House in regard to this matter, and that arrangement has been made would take appropriate action at the on some whimsical basis, I think appropriate time. it is now time for the Government to reconsider the whole thing anew and come to some rational distribution of work along with this Company Law As regards inter-company invest- Department. This Department cannot ments, there also I agree that properly function if it has not got the cases have come to our notice in which control over some other allied subjects. undue advantage has been taken by I hope the hon. Minister will look into certain companies and certain con- this matter. cerns. I personally feel that we should have power to regulate such transac- The Minister of Commerce and tions and we have to consider this Industry (Shri Lai Bahadur Shastrl): matter in connection with the amend- Mr. Chairman, Sir, I shall merely take ment which we propose to make in the a few minutes, because the main reply Companies Act. has to be given by the Deputy Minis- ter, Shri Satish Chandra. I would in the beginning say that the I have now to mention only one or Company Law Administration has on two matters to which reference was whole functioned well in the changed made by Shri Bimal Ghose. Shri context after the passing or after the Guha has a'so said something about enactment of the last Company Law. the social objectives of this law and It is true they have not been very he has also mentioned about the small- harsh in the beginning, for example, er companies. In fact, I am inclined in regard to the submission of balance- to agree with Shri Bimal Ghose that sheets, profit and loss accounts or there should neither be mushroom fheir annual report, because those companies nor b:g monopolistic con- companies had to function in a differ- cerns or huge companies. We will ent context altogether after the pass- have to strike a middle course. Two ing of the Company Law Act. and not suggestions which Shri Bimal Ghose only the private companies but others has placed before the House deserve have also failed occasional'y and some- consideration, especially the one relat- .times frequently. But, as some time ing to creating consciousness, as he has now passed, the Company Law put It, among the shareholders, of their ■ Administration will have to function rights. He made reference to the and it will function more effectively, elaborate procedure regarding passing and tt will have to be more strict of special resolutions, etc. I shall not on the companies in bo far as the sub- go into the details because there is not mission of profit and loss accounts, much time, but I do agree that balance-sheets or other reports is con- we should consider whether we should cerned. have some public relations officers ' 9047 Discussion re' 29 NOVEMBER 1958 Report on the Working 22^8 and Administration of Companies Act in order to educate the shareholders I do not know. I shalj consider that in regard to their rights. We will also matter. I cannot say anything off- have to consider what ways and means hand about it. we should adopt in order to improve the quality of management. Shri A. C. Guha: An assurance was given on the floor of this House that It was said that the present Com- these sections will be under the same pany Law Administration is not fully Company Law Department. That was authorized to deal with all matters on the recommendation of an expert concerning the companies. There is committee. truth in it. Certain branches are with the Economic Affairs Department of Shri Lai Bahadur Shastri: If an the Ministry of Finance; some others assurance was given, I shall certainly are with us. For example, cases which look into it. come under the Industries (Develop- ment and Regulation) Act are dealt Shri Menon has raised a number of with by a different section in the same matters and Mr. Guha also has raised Ministry of Commerce and Industry. some points about liquidation proceed- I have been thinking over it, but I ings. I would merely say that we have have not been able to take a final deci- already prepared our draft of the com- sion. However, I would like to inform pany law amendments and we want at the House that this is an important least to introduce it in this session. matter, specially the work which Those amendments are rather vital and is being done in a different sec- I think the House will get an oppor- tion in our Ministry. We should try tunity again when the amendments are to co-ordinate these things; not only considered to consider the other mat- co-ordinate but we should try to see ters relevant to the Bill which were whether that work could also be done raised in this House today. I have or taken over by the Company Law nothing more to say. Administration. That aspect is receiv- ing my attention. I hope it will be Shri Satish Chandra: Mr. Chair- possible for us to decide this matter, man, many important points have been or take a decision on this matter, raised and I am grateful to Members rather early. who have made constructive sugges- tions. But I may respectfully say that Shri A. C. Goha: What about those the debate has been more or less like items which are now with the Depart- a general debate on the Company Law ment of Economic Affairs of the Fin- Amending Bill which is likely to come ance Ministry? only after some time when Members will have an opportunity to suggest new provisions for incorporation. Shrl Lai Bahadur Shastri: That will have to be taken up by the Fin- ance Ministry. I want to confine my- Some Members have referred to the self to my own Ministry. At least I social objectives of the Plan. The should see that whatever work con- Company Law Department is not pre- cerns my Ministry is carried out sumptuous enough to claim entire res- quickly. ponsibility for the achievement of those social objectives. It can gplj* make a contribution towards the Shri Blmal Ghose: Will the hon. achievement of those objectives and Minister take it up with the hon. Fin- its role is very much limited. Many ance Minister? extraneous things have been brought into the discussion. Something has Shri Lai Bahadur Shastri: I have been said about* cost accounting pro- not personally done it myself, but I cedures and about deficiencies- in -was told that it wn* taken up before. various laws which do not fall within JU49 OtetttMkm re 29 NOVMBPR UH Report «n «fte Wfeftfew 2250 «v t Administration 0/ Companies Act [Shri Sat*h Chandra] the administrative scope of the Com- Mjr esteemed Mead, Shri A. C. pany Law Department. The Com- Ghsha, referred to falling investments pany Law only attempts to safeguard in eompantts. I would stffaanit that the interests of the shareholders. That it is not s». is its primary object and it also attempt* to create an atmosphere in Shri A. C. Qaka; I have not said our industries and trade so that that. Somebody might have said that. healthy management practices may be I have said file number is gradually evolved in the corporate down but the share capital has in- sector. creased. Shri 8atish Chandra: I am sorry. The old Act was passed in 1913. If that is so, I have nothing more to The country had since then made a say on this subject. tremendous progress in the field of trade and industry. It was necessary to bring that law in conformity with Mr. Chairman: It was said by Shri the present conditions. With that Acbar. object in view, a Bill was brought before the House three years ago. It Shri Satish Chandra: What I want- was considered by a joint select com- ed to say in this connection is that mittee of the two Houses end consider- the real measure of success of the ably amended in the Committee stage corporate sector is the capital invest- as well as in the House. The pre- ment attracted to it and not so much sent Act of 1956 is the result of the the number of companies. long deliberations in this House. Now I will request the hon. Members Shri A char: Even with regard to the to judge the performance of the capital, it is less. I am only speaking Company Law Administration in the of that one year. Added to that, light of the existing provision in the most of the companies are Govern- Companies Act. Of course, many good ment-owned and not private-owned. suggestions have been made today, but the right stage to consider them will be Shri Satish Chandra: In 1955-56, the when the new Company Law (Amend- year just before the Act came into ment) Bill, over which Government force, the money invested in Govern- have given considerable thought, is ment companies was Rs. 6*7 crores brought before the House. In non-Govemment companies it was Rs. 50 crores and odd, making a total Something has been said about dis- of Rs. 57 crores. In the following couragement to capital formation year, that is, immediately after the after the enactment of the present Act was passed, the investment in law. I would like to say in this con- Government companies increased from nection that the number of companies, Rs. 6:7 crores to Rs. 8:2 crores. In newly registered in the year imme- the case of non -Government com- diately after the passing of the Indian panies it increased from Rs. 50:4 crores Companies Act of 1956, declined sud- to Rs. 83 crores. These are separate denly as compared to the previous figures for Government companies and jjear. It came down from 1,448 in the non-Govemment companies. previous year to 848 in the next year. The new registrations in the subse- quent year, in 1957-58, have however Shri Achar: It includes both? improved over 1956-57. The number was 961 against 848. From April to Shri Satish Chandra: I gave the October this year -it was 592 in six figures separately. The investment in months. So, it will be evident that the year following the passing of the tiie number of registrations is going up. Act, was Bs. 91-2 crores, as against Diteuukm re 29 N O V S M B X R 1058 Report o h the Working and Administration of Companies Act Rs. $7 crores in the preceding year, to day. Within the limitation* at the it has increased in both the cafes. administrative machinery at the dis- It has increased only by Rs. 1*5 crores posal of the Company Law Depart- in the case of Government companies ment and the existing provisions of afcd Rs. 28 crores in the ease of pri- the Company law, we try to perform vate companies. Therefore, the tears our functions to the best of our entertained by some hon. Members ability. But, if some money is passed are not correct. on from a company to another insti- tution without the knowledge of the Several other points raised by hon. Board of Directors or the shareholders Members will deserve consideration of a company, action is possible only aft a later stage. Shri Rem when the fact is brought to the notice Krishan said something about the of the Company Law Department Ac- T.I.T. company. According to my tion has been taken and investigations present information, there is no such are going on to ascertain the circum- company registered under the Com- stances under which this money was panies Act The T.LT. in Bhiwani is transferred from the mills to another a Technological Institute of the tex- society tile industry. Hiat is what T.I.T. means. Some complaints about it I wish to touch very briefly on were made to the Punjab Govern- inter-company investments. It i* ment. No representation appears to true that there have been many have been received by the Company inter-company investments. Some of Law Department. That is the position them may be said to be of a dubious as ftor as the T.I.T. is concerned. character. Die shares of other com- panies have been cornered by the Shri Narayanankutty Menon spoke directors by utilizing the funds of a something about Dr. Alagappa company under their control. The cor- Chettiar Mills. He said that the com- neming of shares as well as invest- plaints were not enquired into and ments of the funds of one company money was given to some Trust. in another company are matters which Shri Namyaaaakatty Menon: I did require serious consideration. The not say that the complaint was not Company Law Amendment Commit- enquired into. The money has gone tee has suggested some measures to and the workers have not got their plug the loop-holes and they shall fee bonus. brought before this House for con- sideration. If hon. Members have any An Hon. Member: After all, it has other suggestions to make, they can gone to charity. do so at the proper time. Shri Nanjraaaakatty Menon: Shri Ram Krishan: May I know Charity at the expense of the workers. when this Bill is coming? Shri Satish Chandra: He said Shri Satish Chandra: It is likely to something about a resolution having be introduced before this session ends been passed giving the money in or early next session. charity. The company did not pass any resolution. Many members have pointed out An Han. Member: Loaned? that the definition of relatives js absurd and leads to a lot of harass- Shri Satish Chandra: As soon as we ment. That will also be amended received a complaint about this suitably matter, we instituted a proper investi- gation. There is something in what The liquidation proceedings of the- my bon. friend Shri Bimal Ghose bas old companies have presented some that we carry on e post-mortem difficulty. Under the law, the liqui- examination rather than watch the dation proceedings started under the interests of the shareholders from 191S Act are deah with by liquidators C3353 Discussion rc 29 NOVEMBER 1958 Report on the Working £354 and Administration of Companies Act [Shri Satisft Chandra] or receivers appointed' by the respec- company or the agreements that may tive High Courts, over whom the have been entered into at earlier •Company Law Department has no con- stages are not matters which cone trol It is only after the passing of within the purview of the Company the 1056 Act that the Company Law Law Department Department became entitled to ap- In spite of such criticism, I wish to point official liquidators for looking say that many constructive sugges- after the liquidation of companies tions have been made today. We under the new Act. An official liqui- are bringing forward a very compre- dator has been appointed at Bombay. hensive amending Bill. Some part-time officers have been ap- pointed at other places, and the num- An Hon. Member: This session? ber can be increased as soon as there is more work for them. In order to Star! Satish Chandra; This session expedite the old cases, we have re- or the next session. It may be intro- quested High Courts to transfer them duced by the end of this session or to the new official liquidators, bat the early next session. Anyway, it will High Courts have been rcluctant to do he before the hon. Members in the so, and therefore the Company Law Budget Session. That will be the Department has found itself helpless right time when we will be able to in expediting those cases, though we thoroughly examine every aspect of would very much have liked to do so. company management, and try to bring the law in conformity with the There is another section under the Present needs and requirements con- Companies Act under which we can sistent with our industrial and com- call upon the liquidators appointed mercial progress and the social objec- under the old Act to submit periodi- tives which all of us hold dear. cal returns to us, but it is not pos- sible to expedite the cases, and the There are legitimate complaints that Company Law Administration cannot investigations carried on in respect of be held responsible for these delays. Certain companies have been delayed. Rue to certain steps taken by com- Cost accounting procedures of in- pany owners such as obtaining in- dustrial undertakings is not so far the junctions from the High Courts or the responsibility of the Company Law Supreme Court or filing of a writ Administration. I am repeating this Petition, the investigations are delay- because the scope of the company law. ed. It is for this House to find some must be clearly understood. remedy. The Department of Com- Shri Menon spoke very strongly pany Law Administration cannot be about the foreign oil companies, and held responsible for such delays said that they do not submit their which result from the directions given accounts as required under the Com- hy the High Courts or by the panies Act. Some section was quot- Supreme Court to which the matter ed. I may respectfully point out that unay have been taken. these companies have to submit their I would request hon. Members to returns and profit and loss accounts, Consider all these matters dis- but these are not exclusively for the passionately. Government will be operation of their business in India. glad to examine constructive sugges- *A copy of their world balance sheet tions which may be offered for the which they submit to the Registrar in improvement of the Company Law the country of incorporation is also Administration. filed here with the Registrar at New Delhi. Of course, it is open to the 17.32 hrs. Company Law Pepartment to ask The Lok Sabha then adjourned till • questions, or to get more information, Eleven of the Clock on Monday, th* .but the costing of the products of a 1st December, 1958. DAILY DIGEST 2256 [Saturday, zph November, 1958] ORAL ANSWERS I'd QUES- 5 WRITTEN ANSWERS TO TIONS aoii— * QUESTIONS—contd 5 Q Subject C olum ns Subject No SQ Co l u mn s No. 3x8 State Finding Corporation 2011—T5 329 ‘Jahad’ Campaign in Pakis- 357 Employees’ Provident tan 201S-18 Fund 2064 330 Optical Glass Plant 2018—21 358 Code of Discipline m Industry 2064 6$ 331 Coffee Board 2021—23 359 Industnal Estates tn 332 Second Five Year plan 2023—27 Bombay 2065-66 333 Implementation of Second 360 Indian 1 ea for West Plan . 2027—34 Germany 2066 334 Manufacture of Paper 2034—37 335 Indian injured in France 2037-38 361 Radio-active Contamina- tion 2067 336 Missilt bases in Pakistan 2038—41 362 Eucalyptus Oil 2067-68 337 President’s Visit abroad 2041—43 363 Revision of U N Charter 2068 338 Baby Milk Food 2043-44 364 Film on Untouchability 2068-69 339 Stainless Steel Utensils 2044—46 365 Export of Oils and Oilcakes 2069 SJVQ. 366 Change in the course of Ravi 2069 3 Indians in Singapore 2046— 52 367 Sericulture Schemes in Manipur 2070 WRITTLN ANSWfcRS 1 0 QULiTIONS • • 2053—2121 368 Indian Territory shown under China 2070-71 SQ 369 Pakistan Police raid on No I A C Office, Karachi 2071-72 340 Industrial Committee on 370 Suspension of Nuclear Cotton rexult 2053 Tests 2072-73 341 silk Handloom Weavers’ Co-operative Societies 2053-54 371 Power Projects, Punjab 2073 342 Second five year Plan of 372 Surgical Instruments 2073 Kashmir *054 373 Indian Engineers for Ghana 343 Cement Factories 2054 and Iraq 2074 344 Export of Bicycles 20$$ 374 Floor Mats and Minings 2074-7$ 34$ Diplomatic immunity for 375 Exports o f Automobiles 2075 Indian Ponces 2055-56 376 Raw Jute 2075-76 346 Production of Cement 205S 377 Export of Articles 2076-77 347. Reviews of Progress of 378 Indian S.eel Uuon 2077 Plan 2056-57 379 Planning Committee for 348 International Tea agree- Hilly Regions 2077-78 ment 2057-58 380 Hindustan Antibiotics 349. Effect of Suez Crisis on (Private) Ltd 207ft Plan 2058-J9 381 Violation o f Air Space by 330 Shares of Private Enter- a Pakistan Aircraft 2078-79 prises 2059 382 Tea Mission to Ireland 2079 351 Asian-Afncan Legal Con- 383 Internationa] Law Com- sultative Committee 2060 mission 2077-80 352, Conference o f Chief Ins- pectors o f Factones 2060-61 384 Foreign Arbitral Awards 2080 353. Arrears of rent o f Go- 38$ Kashmir 2080-81 vernment Buildings 2061-62 386 Employment Bureau at 354 Piece-rate System of Delhi University 2081 Payment 2062 387 Cotton Fabrics 2081 33$ Indo-Pak Canal Waters Dis- 388 Trade with West Germanv 2081*81 pute 3063-63 389 Spindles and Automatic 356. Tea Plantations in Kerala *063-64 Looms 2082-83 • W 7 f A ml * ANMt] w tarnss answ ers t o m ise m i answ ers t o QUXSTIONS^ccmM. QUESTIONS-conld. UJS.Q. Subject Count** U.S.Q. Svhjcct Columkb tf6. M*. 390. Phizo'i meeting with J«4- Export of Tea 2103*04 General Ayub >083-84 J6J. Export of Coffee 2104-05 391. Advisory Committee for J«. Safety Measure* in Mines 2105 Government Colonies in 567. Housing Scheme for Coal Delhi . . . **4 Miners . 2105 {68. Mr. Abdul All 2105*06 U.S.Q. No. 369. National Tribunal 2106 933. Displaced persons in 570. Amendment of Indian Puraoa Qila ■ 2084 Tirade Union Act iio6 -or 534. Textile Mill* in Punjab 2084-85 371- Water Cooler* 2107*08 535. Textile Mills 208s rj». Aid to Foreign Countries 2/08 536. Fertiliser Factory in Nan- 373- Medium Industrial Bstate 2x08-09 2085-86 gal 374. Ambar Chatkha Scheme . 2109*10 537. Export Promotion Ad Tribeni Canal visory Committees 2086-87 375- 2110 . Newsreels 538. Gama Rock Salt 2087-88 376 2I 10- 1S t77. Consumption of Cotton 339. Central Assistance to by Mills Orissa 2088-89 2111 378. Caustic Soda 540. Steel Requiretnem >! 21I1-12 Orissa 3089 J79. Fertilizer Factory at Karad (Bombay) ilia 541. Industries jnOnssa. 2089 580. Ambar Charkha 34a. General Houswg Co-opera 2112 tive Societies 2089-90 381. Poona Station of A.I.R. 2113 943. Nagas raid Siloubi Village 2090 583. Rehabilitation of Dis placed persons in Oriiis 2113-14 544. Foreign experts and con sultants 2090-91 584. Export of leather footwear MI4 543. Cottage Industr> 2091-92 585. Rubber Tnduitry 2114*1$ 546. Ambar Charkhas 2092 586. Sindri Fertilizers and Chemical* ^Private;Ltd. 2115 5 4 7 , Industrial Estates 2092 587. Committee 00 Coir Induitry 2115*16 3 4 9 . Nuclear Tests in Trustee ship Areas ■ 2093-94 588. Financial Anittance to Bihar 2116 5jo. Muslim Shrines in Punjab 2094 389- U.rJ. Observers 2117 551, U.N. Observer Group in Lebanon *>94*95 390. Foreign Publicity 2117-18 35a. Industrial relations *095 391- Food Plants for Silk Worms 2119 S<3. Development of Eastern 39*. Housing Problem • 2119 U.P. 2096 593. Toy Factories 2119-20 554, Mew Algerian Government *096-97 394- Industrial Estate, Agra 2120-21 «<<. Technical Training Ins titute atOkhla 2097 STATEMENT BY MINIS s<6. Production of Ambar Char- TER 2121—23 kha 2087-98 The Minister of Mine* aad Oil 5jj. Indian (Exhibition abroad J»9*-99 (Shri K. D. Malsviya) made S5& Employment Exchange 2099-2x00 a statement regarding, die outbreak of fire at the Lunej 559. Incentives to Exporter? 2100-01 ail 'veil site near Cambay 560. Metric System of Weight* on the 28th November, 1958. and Measures 2101-02 PAPERS LAID ON THE 56j, Industrial Output and Na TABLE .... 2123—23 tional Income 2102 The following paper* were 562. Labourers in Mines of laid on the ’Iaole Oritia .... 2JC* fi) A copy of the Rubber 563. Stum Clearance in Orissa 2103 Board Employees’ Con- Mte [ Dail y Dm m * ] aa6o COLUMNS C o u n m PAPERS LAID ON THE PAPERS LAID ON THE TABLE—contd. TABLE—eontd. * duct Rules published (<; A copy of the 'dtaft ta Notification No. S.O. Notification propo«ed to 3083 dated the ixth be issued under Section October, 1958 under sub t2 of the Standards of jection (3) of Section 25 Weights and Measures of the Rubber Act, 1947. Act, 1956, in pursuance (2) A copy of each of the of an assurance given on following Notifications the 8th December, 1956 under sub-section (3) of duri g the debate oo tne Section 48 of the Coffee Standards of Weights and Act, 1942, maxing cer Measures Bill. tain further amendments to the Coffee Rules, CALLING ATTENTION TO MATTER OF URGFNT 1955 PUBLIC IMPORTANCE zia 5—*9 Ci) G.S.R. No. 846 datec’ Shrimiti Mafida Ahmed called the 27th September, the attention of the Prime 1958- Minister to the progress so '11) G.S.R. No. 1071 far made in implementation dated the 8rh Novem of the agreement arrived at ber, 1958. recently in New Delhi bet ween the Prime Ministers of 13) A copy of each of the following papers under India and Pakistan regarding sub-section (2) of Section border adjustments. 16 of the Tariff Com The Deputy Minister of Ex mission Act, (951 ternal Aflairs (Shrimad li) Report (1958) of the T-»fc«hiwi Menon) made a Tariff Commission on statement in regard thereto. the continuance of pro MOTION RF: INVESTMENT tection to the Sericul POLICY OF LIFE INSU ture Industry RANCE CORPORATION ai3t—94 (u) Government Resolu Further discussion on the mo tion No. 36 '3)-TR/j 8 tion re : Investment Policy dated the 18th Novem of Life Insurance Corpora ber, 1958 tion continued. The Minis uii) Report'1958) of the ter of Finance (Shri Morarii Tariff Commission on Desai) replied to the Debate, the continuance of and the discussion was con protection to the Alu cluded. minium Industry DISCUSSION PE: REPORT fiv) Government Reso ON THE WORKTNG AND lution No. 3(5)-rR/58 ADMINISTRATION OF date*1 the 20th Novem COMPANIFS ACT . 2194—*’ 54 ber, I9<8. Shri Ram Krishan raised a 14) A copy of each of the discussion on the Annual fallowing Reports :— Feport on the working and