Ministry of Steel
The Public Sector Iron and Steel Companies (Restructuring) and Miscellaneous Provisions Act, 1978, aimed to restructure public sector iron and steel companies in India to improve management and efficiency. The Act facilitated the consolidation of assets, undertakings, and shares of several companies into designated entities, primarily the Steel Authority of India Limited (SAIL). This restructuring was part of a broader effort to streamline the steel industry and enhance its contribution to national development. This Act falls under the Ministry of Steel.
Enactment Date, Number of Chapters, Number of Sections:
The Act was enacted on April 30, 1978, and came into force on May 1, 1978. It consists of six chapters and 27 sections, along with two schedules listing the dissolved and transferee companies.
Act Governed By:
The Act’s implementation was overseen by the Central Government, which had the power to direct the transfer of undertakings and shares, modify share capital, and issue directions related to the restructuring process.
On Whom It Is Applicable:
The Act primarily applied to the public sector iron and steel companies listed in the schedules, their officers, employees, and shareholders. It also impacted related entities such as the Steel Authority of India Limited (SAIL) and other transferee companies.
Penalties/Punishments:
The Act itself doesn’t specify penalties. However, it addresses the legal and financial implications of the restructuring, including the transfer of liabilities and the handling of employee benefits.
Important Pointers:
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Dissolved several public sector iron and steel companies.
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Transferred the undertakings and assets of these companies to SAIL and other designated entities.
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Addressed the transfer and vesting of shares held by the dissolved companies and the Central Government.
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Provided for the continuation of employment for officers and other employees of the dissolved companies, with terms and conditions no less favorable than before.
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Outlined provisions related to directors, auditors, and employee funds such as provident fund and gratuity.
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Addressed/the tax implications of the restructuring, including income tax and surtax.
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Included savings clauses for existing contracts and legal proceedings.
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Granted the Central Government the power to remove difficulties and amend the memorandum and articles of association of the companies involved.