Centre throws open all sectors to private players
#GS2 #Governance #Acts #Schemes
MGNREGA gets ₹40,000 crore in FM’s fifth tranche
- The Centre has agreed to demands from States to hike their borrowing limits from 3% to 5% of their GDP in light of the COVID-19 crisis, but on the condition that they implement specific reforms.
- The fifth and final tranche of the Atmanirbhar Bharat Abhiyan stimulus package, announced by Finance Minister Nirmala Sitharaman on Sunday, also included an additional ₹40,000 crore allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and a new policy welcoming private companies into every sector of industry, while limiting public sector enterprises to strategic sectors only.
- Corporate enterprises were also offered some relief via changes to the Insolvency and Bankruptcy Code (IBC) and the Companies Act.
Insolvency and Bankruptcy Code (IBC) and the Companies Act
- The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.
- The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015.
- It was passed by Lok Sabha on 5 May 2016 and by Rajya Sabha on 11 May 2016.
- The Code received the assent of the President of India on 28 May 2016.
- Certain provisions of the Act have come into force from 5 August and 19 August 2016.
- The bankruptcy code is a one stop solution for resolving insolvencies which previously was a long process that did not offer an economically viable arrangement.
- The code aims to protect the interests of small investors and make the process of doing business less cumbersome.
- The IBC has 255 sections and 11 schedules.
- The Insolvency and Bankruptcy Code, 2015 was introduced in the Lok Sabha on 21 December 2015 by former Finance Minister, Late Arun Jaitley.
- The code was referred to a Joint Committee of Parliament on 23 December 2015, and recommended by the Committee on 28 April 2016.
- The code was passed by the Lok Sabha and the Rajya Sabha on 5 May and 11 May 2016 respectively.
- Subsequently, it received assent from President Pranab Mukherjee and was notified in The Gazette of India on 28 May 2016.
- The Code was passed by parliament in May 2016 and became effective in December 2016.
- Section 243 of this code repeals the Presidency Towns Insolvency Act, 1901 and Provincial Insolvency Act, 1920.
- The first insolvency resolution order under this code was passed by National Company Law Tribunal (NCLT) in the case of Synergies-Dooray Automotive Ltd on 14 August 2017 and the second resolution plan was submitted in the case of Prowess International Private Limited.
- The plea for insolvency was submitted by company on 23 January 2017.
- The resolution plan was submitted to NCLT within a period of 180 days as required by the code, and the approval for the same was received on 2 August 2017 from the tribunal.
- The final order was uploaded on 14 August 2017 on the NCLT website.