8/17/2015

HTexplains:Whatareordinances?

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HTexplains:Whatareordinances?
BSundaresan,HindustanTimes,NewDelhi
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Updated:Jan28,201508:36IST

ThegovernmenthaschosentheOrdinanceroutetoputintoforceseverallegislativeBillsoverthepastmonths.ManyoftheseareexpectedtobetabledinParliamentintheupcomingbudgetsession.HTexplainsfourofthem.
Whatisanordinance?
AsperArticle123oftheConstitution,whenParliamentisnotinsession,thePresidenthasthepowertopromulgateanOrdinancewhichhasthesameforceandeffectasanAct.But,thearticlestatesthatthisrouteshould
beadoptedonlywhenthePresidentisconvincedofthenecessityforhimtotakeimmediateaction.Also,anOrdinancehastobelaidbeforebothHousesofParliament,anditceasestobefunctionalaftersixweeksfrom
Parliamentsreassembly.ThePresidentcanwithdrawOrdinancesatanytime.TheNDAgovernmenthasapproved11Ordinancessofaroutofwhich10havereceivedpresidentialapproval.
CoalMines(SpecialProvisions)Ordinance,2014
http://www.hindustantimes.com/businessnews/htexplainswhatareordinances/article11311277.aspx

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8/17/2015

HTexplains:Whatareordinances?

Thisprovidesfortheauctionof204coalblocksthatwerecancelledbytheSupremeCourt(SC)inSeptember2014.ItamendstheCoalMinesAct,1973,andtheMinesandMinerals(DevelopmentandRegulation)Act,1957.
Anauctionpolicyhasbeendraftedascoaldirectlyaffectsenergysecurityandthefunctioningofindustriessuchassteelandcementthathaveacrosstheboardimpact.
TheOrdinancestatesthatallspecifiedmineswillbeauctionedwiththegovernmenthavingthediscretiontoallotminestogovernmentcompaniesthatarenotinjointventures(JV)withprivatefirmstosetuppowerprojects
basedoncompetitivebidding.
Priorallottees,whoseblockshavebeencancelled,canparticipateintheauctioniftheypayanadditionallevy.Themineswillbeallocatedforspecificenduse.
TheInsuranceLaws(Amendment)Ordinance
TheBillseekstoamendthreeActsInsuranceAct,1938,theGeneralInsuranceBusiness(Nationalisation)Act,1972andtheInsuranceRegulatoryandDevelopmentAuthorityAct,1999.Theamendmentsinclude,among
otherthings,roomtoraisethecaponforeigndirectinvestment(FDI)ininsurancecompaniesfrom26%to49%.However,theincreasewillbesubjecttoapprovalbytheForeignInvestmentPromotionBoard.
OtherproposedamendmentsincludechangesinIRDAsregulatorypowers,provisionforpenaltiesoninsurers,andallowingofforeignreinsurerstooperateinIndiathroughbranches.TheBillalsorecogniseshealth
insuranceasaseparatesegment,withaminimumcapitalrequirementofRs50croreforcompanies.
TheLandAcquisition,RehabilitationandResettlement(Amendment)Ordinance,2014
ThisseekstoamendtheRighttoFairCompensationandTransparencyinLandAcquisition,RehabilitationandResettlementAct,2013(LARRAct)passedbytheUPAgovernment.ThegovernmentsaidtheLARRActhad
exempted13otherlawssuchastheAtomicEnergyAct,RailwaysAct,NationalHighwaysActetcfromtheambitofhighercompensations.TheOrdinanceincludesalltheseacts.
However,tospeeduplandacquisitions,thesocialimpactassessmentclauseofLARRActhasbeenremovedforprojectsrelatedtodefence,defenceproduction,ruralinfrastructure,industrialcorridorsandinfrastructure
projectsinvolvingpublicprivatepartnershipswherethelandisownedbythegovernment.Thesesectorswillnolongerrequirepriorconsentofthelandowners.TheLARRActmandatedtheapprovalof80%ofthosewhowill
beaffectedbytheprivateproject,beforeanacquisition.Thisfigureis70%incaseofPPPprojects.TheOrdinancehasalsoremovedrestrictionsonacquisitionofmulticroppedland.
MinesandMinerals(DevelopmentandRegulation)Ordinance,2015
ThisseekstoamendtheMinesandMineralsDevelopmentAct,1957,toaddressproblemssuchasillegalmining,renewaloflicences,decreasingoutput,thepowersofstatesinallocationofminesandexploitationofmining
areas.
TheOrdinancedoesawaywiththepolicyofdiscretionaryallocationofmines,andreplacesitwithanauctionsystem.Italsoscrapstheneedtorenewlicencesastheallotteeswillbegivenafixedtenureof50years.
TheOrdinancealsovouchesforthesettingupofaNationalMineralDevelopmentTrust,whichwouldbefundedbythemineholdersthemselves,topromotemineralexplorationinthecountry.Districtlevelmineral
foundationsalsowillbesetupforthedevelopmentofareaswhereminesarelocated.Penalprovisionsagainstillegalmininghavebeenmademorestringent,andspecialcourtswillbesetuptomonitorthis.
Tags
MinesandMinerals(DevelopmentandRegulation)Ordinance
ordinance
TheLandAcquisition
RehabilitationandResettlement(Amendment)Ordinance
TheInsuranceLaws(Amendment)Ordinance

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