Section 2 in The Indian Iron And Steel Company (Taking Over Of Management) Act,1972
2. While substantial progress has been made to restructure and streamline administrative setup of the Company and also to carry out comprehensive programme for rehabilitation of the various items of plant and equipment, it has not been possible to complete this, within the limited period of two years. It is considered essential that the technical health of the plant should be improved through completion of the Rehabilitation Scheme so that production in the plant is brought to its rated level. Apart from this, continuity of control over the management of the Company seems necessary to safeguard the substantial investment in the Company by various Public Sector Institutions and further investment of Rs. 43 crores on Plant Rehabilitation. In the circumstances, it has been considered necessary that the period of take over of the management of the company by the government could continue for a further period of three years with effect from the 14th July, 1974 with a power the extend the period, it considered necessary, for a further period of five years.
3. After the initial take over of the management cf the company, the management was carried on through a custodian appointed by Government and assisted by an Advisory Board constituted by Government. This arrangement has not been found to be satisfactory and it is, therefore, proposed that during the eytended period, a Board of Management should be provided to run the management of the company. There will be an Administrator who will work under the supervision and the guidance of the Board of management which itself will work under the supervision, direction and control of the Central Government.4. Accordingly, the Bill seeks to extend the period of take over of the management of the company by Government by a period of three years with effect from the 14th July, 1974 and further seeks to replace to Ordinance which was promulgated by the President for the purpose - See Gazette of India, 25-7-1974, Pt. 11, Section 2 Ext., p.693.[3rd September, 1972]An Act to provide for the taking over of the management of the undertaking of the Indian Iron and Steel Company Limited for a limited period in the public interest and in order to secure the proper management of the undertaking.Be it enacted by Parliament in the Twenty-third Year of the Republic of India as follows:-
