Jute Companies (Nationalisation) Act,1980
Act No : 62
Section : SHORT TITLE
JUTE COMPANIES (NATIONALISATION) ACT, 1980
1. The management of M/s. Alexandra Jute Mills Limited, M/s. Union Jute Company Limited, M/s. Khardah Company Limited, M/s, Kinnison Jute Mills Company Limited and M/s. RBHM Jute Mills Private Limited, was taken over after proper investigations, by the Central Government under the provisions of the Industries (Development and Regulation) Act; 1951during 1977 and 1978.
2. These companies together have an installed productive capacity of over 88,000 metric tonnes to produce jute goods which are essential to the needs of the economy of the country. A labour complement of over 17,000 is also involved.
3. The investigation reports, feasibility reports, viability studies, etc. undertaken before the take-over of the management of these mills clearly brought out the possibility of reopening of these mills, which were closed at the time of take-over, and of making their operations viable with injection of adequate funds and reorganisation of the management structure. Each of these mills had a negative net worth on the date of take over. The performance of these mills after take-over has not been satisfactory. The reports, drawn up mostly by the financial institutions and considered at inter-departmental meetings, had clearly stated that the operations of these mills are bound to remain unsatisfactory unless immediate steps are taken for modernisation of the plant and machinery. This called for further heavy investment of public funds. It was felt that further heavy investment of public funds should be preceded by some arrangement which ensured continuity of the management of the mills with the Government. Taking all the factors into account, it was felt that the process of nationalisation appeared to be the most appropriate solution to the problems of the mills taken over.
4. The Bill provides for the nationalisation of these mills and for other incidental matters.-See Gaz. of India, 1-12-1980, Pt. II, sec. 2., Ext., p. 1165.
An Act to provide for the acquisition and transfer of the undertakings of the jute companies specified in the First Schedule with a view to securing the proper management of such undertakings so as to sub serve the interests of the general public by ensuring the continued manufacture, production and distribution of articles made of jute, which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto.
Whereas the said jute companies had been engaged in the manufacture and production of articles mentioned in the First Schedule to the Industries (Development and Regulation) Act, 1951, namely textiles made wholly or in part of jute;
And whereas the management of the undertakings of each of the said jute companies was taken over by the Central Government under the Industries (Development and Regulation) Act, 1951;
And whereas it is necessary to acquire the undertakings, of the said jute companies to ensure that the interests of the general public are served by the continuance, by the undertakings of the said jute companies, of the manufacture, production and distribution of the aforesaid articles which are essential to the needs of the economy of the country;
Be it enacted by Parliament in the Thirty-first Year of the Republic of India as follows:
SECTION 01: SHORT TITLE
This Act may be called the Jute Companies (Nationalisation) Act, 1980.
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