Report No. 249
77. Indian Iron and Steel Company (Acquisition of Shares) Act, Act 89 of 1976
The Act provided for the acquisition of certain shares of the Indian Iron and Steel Company Limited (IISCO) with a view to securing the proper management of the affairs of the Company. By means of this Act, all shares of IISCO were transferred to the Central Government and a compensation of Rs. 7.2 crores was paid to the shareholders.
Pursuant to the acquisition of shares under this Act in 1976, the Steel Companies (Restructuring) and Miscellaneous Provisions Act in 1978 made IISCO a wholly owned subsidiary of the Steel Authority of India Limited (SAIL). The purpose of the 1976 Act was only the transfer of shares of IISCO to the Central Government which has already been fulfilled and hence, the Act is now redundant.
The Central Government should therefore repeal this Act. A suitable savings clause must be added to the repealing Act so as to save any right, privilege, obligation or liability accrued or incurred under this Act. This Act was also recommended for repeal by the Ministry of Steel in its letter No. 12(45)/2014-SAIL (OP) dated 20th August 2014 to the Cabinet Secretariat.