The bills include changes in the Insolvency and Bankruptcy Code (IBC) replacing the Ordinance enabling prepackaged resolution schemes for micro, small, and medium enterprises (MSMEs) and allowing corporate debtors to propose a resolution plan for the stressed company
Parliament House. Pic/iStock
The government is going to introduce 17 new Bills in the Monsoon Session of Parliament, which begins on July 19. With the much-awaited Cabinet reshuffle finally done and dusted, it is time for governance again.
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The bills include changes in the Insolvency and Bankruptcy Code (IBC) replacing the Ordinance enabling prepackaged resolution schemes for micro, small, and medium enterprises (MSMEs) and allowing corporate debtors to propose a resolution plan for the stressed company.
Besides, the Centre will also introduce the Deposit Insurance Bill, increase insurance cover to Rs 5 lakh.
However, the much-awaited cryptocurrency Bill has been delayed and is not listed in the Lok Sabha Bulletin of the session.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 (Crypto Bill), was earlier listed for the Budget Session but couldn't be tabled as the session was truncated because of the second wave of Covid-19. However, sources said the government is yet to finalise the contours of the Bill and is still evaluating the framework.
Of the 17 new bills lined up for the session are amendments in Limited Liability Partnership (LLP) Act, the Electricity Act and the Coal Bearing Areas (Acquisition and Development) Act, apart from others.
According to the Lok Sabha bulletin, the amendment in the IBC is to replace the April Ordinance, which was promulgated to provide speedier, cost-effective, semi-formal and less disruptive framework for insolvency resolution of corporate debtors in distress. The minimum threshold of default will be announced as part of the regulation. The prepackaged scheme has given a semi-formal structure to the pre-insolvency stage.
The objective of the Deposit Insurance and Credit Guarantee Corporation Bill is to provide depositors easy and time-bound access to their hard-earned money and to further instill confidence about the safety of their money. This follows the Budget announcement of 2020, where the Centre approved an increase in cover from Rs 1 lakh to Rs 5 lakh.
The crucial amendment to the LLP Act, 2008, will also be taken up. The government is planning to decriminalise 12 compoundable offences that deal with procedural and technical violations. This is to ensure ease of doing business for law-abiding LLPs.
Another Bill on top of the agenda is the Coal Bearing Areas (Acquisition and Development) Amendment Bill, 2021.
The amendment will enable provisions for leasing of land and coal mining rights vested under the CBA Act to any company (including private sector companies) that has become successful bidder in the auction of coal blocks conducted under the MMDR Act or the CMSP Act.
Land acquired under the Act shall be utilised for coal mining operations and allied or ancillary activities and to make provisions for acquisition of lignite bearing areas under the CBA Act.
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