Amendments to curtail govt power in institutes

The Cabinet today cleared three amendment Bills pertaining to the Institute of Chartered Accountants of India, the Institute of Companies Secretaries of India and the Institute of Cost and Works Accountants of India (ICWAI).

The Bills would be tabled in the forthcoming Winter Session of Parliament, Information and Broadcasting Minister Jaipal Reddy said.

The amendments would curtail the government's power to issuing directions to the institutes only in cases related to violation of the provisions of their Act. In case of persistent violations, the government would have the power to dissolve the body.

It also provides for a three-tier disciplinary mechanism for the members of the professional bodies. While a three-member board would take up cases related to minor offences by the members of the institutes, cases of major disciplinary actions would be taken up by a five-member council. Disputed cases would be referred to an appellate tribunal, which would be common for all the three.

The amendments restrict institutes from setting up universities and using names like the ICAI University for imparting education. It also reaffirms retaining the name ICWAI.

The amendment Bill will also pave the way for setting up of multi-disciplinary firms which will allow professionals to set up firms with a mix of various professionals including lawyers.

The Cabinet also cleared a Bill to grant statutory status to the National Institute of Fashion Technology. The Cabinet Committee of Economic Affairs today also cleared the project for deepening of channel at the Paradip Port at the cost of Rs 154.842 crore.

While Rs 51.61 crore will be given by the government, a third of the cost will be taken as loan. The balance will be arranged by the port.

The project will enable the port to take in larger vessels with a capacity of 125,000 Deadweight Tonnage (DwT) against the existing capacity of 65,000 DwT. It will also help in de-congestion of the port and reduce sea freight for bulk cargo in general, and iron ore and crude oil in particular.

The CCEA also approved the foreclosure of Jhanjra underground project, located in north-eastern side of Raniganj coalfield in West Bengal.

The project, with an estimated cost of Rs 363.07 crore, is being foreclosed on account of problems pertaining to land acquisition and decline in labour productivity.