Section 1277 in The Indian Iron And Steel Company (Taking Over Of Management) Act,1972
1277.
1. The production of steel is vital to the economy of the country. At present, there is a wide gap between the demand and the domestic production. It is, therefore, imperative that the production from the existing Steel Plants is increased to the maximum extent possible.2. Government were viewing with great concern the progressive decline it the production o1 the Steel Plant of Indian Iron and Steel Company Ltd., and the deterioration in the condition of the Plant, resulting from lack of adequate attention to maintenance. Against the rated caracity of the Plant of one millions tonnes of steel ingots, the production which was 10,27,000 tonnes in 1963-64 had fallen to 6,17,000 tonnes in 1971-72 and the indications were that the performance during 1972-73 would be substantially worse than in 1971-72. The management of the company had been unable to halt the steady deterioration in production prospects. There had also been no recognition on their part of the urgency of implementing schemes for the modernisation of the Plant and its expansion. Government could not, therefore, watch passively the deteriorating state of affairs in the company.3. Government, therefore, decided to take over the management of the undertaking for a limited period of two years to secure the proper management of the company and to subserve the public good in the context of the steel requirements of the country. The management of the undertaking was, therefore, taken over by the Central Government with effect from the 14th July, 1972 under the Indian Iron and Steel Company (Taking Over of Management) Ordinance, 1972.4. The Bill seeks to replace the Ordinance. - See Gazette of India, 16-8-1972, Pt. II, Section 2, Ext., P. 744.Act 36 of 1974 Through the Indian Iron and Steel Company (Taking Over of Management, Act, 1972, the management of Indian Iron and Steel Company Limited was taken over by the Central Government for a period of two years with effect from the 14th July, 1972, to secure the proper management of the Company and to subserve the publi 2 good in the context of the steel requirements of the country.
