New Delhi | The central government is going to introduce 17 new bills in the monsoon session of Parliament starting from July 19. The much-awaited cabinet reshuffle has finally happened and now it is time for governance again.
These bills include changes to the Insolvency and Bankruptcy Code (IBC) – replacing an ordinance enabling pre-packaged resolution plans for micro, small and medium enterprises (MSMEs) and an ordinance for companies grappling with corporate debtors. Issues such as allowing resolution plans to be proposed are included.
Apart from this, the central government is also going to introduce an insurance bill to increase the insurance cover to Rs 5 lakh.
However, the much-awaited cryptocurrency bill has been delayed again and is not listed in the Lok Sabha bulletin of the current session.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 (Crypto Bill), was first listed for the budget session but could not be introduced as the session was cut short due to the second wave of COVID-19. However, sources said that the government is yet to finalize the outline of the bill and is still evaluating the framework.
The 17 new bills prepared for the coming session include amendments to the Limited Liability Partnership (LLP) Act, the Electricity Act and the Coal Bearing Sectors (Acquisition and Development) Act.
According to the Lok Sabha bulletin, the amendment to the IBC is to replace the April Ordinance, which was promulgated to provide a quick, cost-effective, semi-formal and less disruptive framework for insolvency resolution of corporate debtors in distress. The minimum limit of default will be declared as part of the regulation. The pre-packaged scheme has given a semi-formal structure to the pre-insolvency stage.
The Deposit Insurance and Credit Guarantee Corporation Bill aims to provide depositors with easy and timely access to their hard-earned money and instill confidence about the safety of their money. This follows the Budget announcement of 2020, where the Center had approved to increase the cover from Rs 1 lakh to Rs 5 lakh.
In addition, significant amendments to the LLP Act, 2008 will also be considered. The government is planning to decriminalize 12 compoundable offenses dealing with procedural and technical violations. This is to ensure ease of doing business for law-abiding LLPs.
Another bill on the top of the agenda is the Coal Bearing Sectors (Acquisition and Development) Amendment Bill, 2021.
The amendment will enable provisions for leasing out land and coal mining rights vested under the CBA Act to any company (including private sector companies) that has become a successful bidder in the auction of coal blocks conducted under the MMDR Act or the CMSP Act.
The land acquired under the Act will be used for coal mining operations and allied or ancillary activities and for making provisions for the acquisition of lignite areas under the CBA Act.