The committee will submit its report in three months and on the basis of its recommendations a bill will be introduced in Parliament in the winter session of parliament.
The committee will examine "Acts and Rules which may have become obsolete within the last 10 to 15 years".
The decision to set up the committee is a follow-up to Modi's first major statement after becoming Prime Minister that archaic laws hamper governance and need to be identified and weeded out.
"The newly-constituted Committee will examine all Acts recommended to be repealed by the Committee on Review of Administrative Laws", which had been appointed by Atal Bihari Vajpayee government in 1998," it added.
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The PMO said Modi has expressed concern that out of the 1382 Acts recommended for repeal by that Committee, only 415 have been repealed so far.
"He (Modi) has called for a focused and result-oriented exercise to systematically weed out archaic laws and rules," the statement said.