Report No. 251

12. Indian Iron and Steel Company (Acquisition of Shares) Act, Act 89 of 1976

Category: Nationalisation

Recommendation: Consider for Repeal

This Act provided for the acquisition of shares of the Indian Iron and Steel Company Limited (IISCO) by the Central Government. It specified that on an appointed date, all shares of this company would be transferred to the Central Government. Later, under the Steel Companies (Restructuring) and Miscellaneous Provisions Act, 1978, IISCO was made a wholly owned subsidiary of the Steel Authority of India (SAIL). IISCO's shares were transferred to SAIL under the 1978 Act.

The Act provided for the nationalisation of IISCO and matters connected therewith, such as amount to be paid on transfer of the undertaking of the Company, transfer of service of existing employees, etc. The purpose of this Act has been served insofar the nationalisation of the concerned entity was concerned.

The Act does not contain provisions of the management of the nationalised entity. Hence, this Act does not serve any continuing purpose with respect to the nationalised entity. As a matter of abundant caution, a study of all the nationalisation Acts should be done before with a view to consider repeal of these Acts. If necessary, a suitable savings clause should be inserted in the repealing Act.