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NATIONAL JUTE BOARD ACT, 2006
49 OF 2006
A BILL PREAMBL to provide for the establishment of a National Jute Board for the development of the cultivation, manufacture and marketing of jute and jute products and for matters connected therewith and incidental thereto,BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows :- STATEMENT OF OBJECTS AND REASONS The jute sector occupies an important place in the economy of the country in general, and the eastern region in particular. Around 0.14 million people are engaged in the tertiary sector and allied activities, supporting the jute economy. These apart, the jute industry also contributes to exports to the tune of nearly Rs. 1,000 crores. The Jute Manufactures Development Council (JMDC), incorporated under the Jute Manufactures Development Council Act, 1983 and the National Centre for Jute Diversification (NCJD), a Society set up by the Central Government in the Ministry of Textiles and registered under the Societies Registration Act, 1860 are the institutions which are presently co-ordinating the operations of the large number of functions in the jute sector. In pursuance to the National Jute Policy, 2005, the Government has approved the creation of a National Jute Board. Creation of the Board is a major organisational initiative and it will be the agency to co-ordinate and implement the programmes of the jute sector. The proposed Jute Board will be constituted and incorporated by merging the existing Jute Manufactures Development Council (JMDC), and the National Centre for Jute Diversification (NCJD) along with their funds and manpower, To avoid the multiplicity of efforts and programmes of various organisations in the jute sector, the National Jute Board will act as an umbrella body for the entire jute sector. The salient features of the proposed legislation are as follows (i) it proposes to merge Jute Manufactures Development Council and the National Centre for Jute Diversification, and in place of these two entities constitution and incorporation of a Board to be called the National Jute Board; (ii) the proposed Board shall be consisting of 20 members to be appointed by the Central Government from the jute sector, representing the jute industry, labour institutions and organisations functioning in the jute sector, and from the Ministry of Textiles, Ministry of Agriculture and Ministry of Food and Public Distribution. The Secretary, Ministry of Textiles will be the ex officio Chairperson of the Board; (iii) the Central Government is being empowered to appoint the Secretary to the Board and such other officers and employees, as it considers necessary for the efficient discharge of its functions and the terms and conditions of service of the Secretary and other officers and employees of the Board shall be such as may be determined by regulations; (iv) the functions of the Board inter alia to promote the development of jute and jute products; to promote production of better quality raw jute; to enhance productivity of raw jute; to promote and undertake arrangements for better marketing and standardization of the prices of raw jute; to assist and encourage studies and research for improvement of processing, quality, techniques of grading and packaging of raw jute; to provide and create necessary infrastructural facilities and conditions conducive to the development of diversified jute products; to provide financial assistance by way of subsidy or seed capital, etc. Clause 5 of the proposed Bill specifies the detailed functions of the Board; (v) it has been also proposed that the property and contract including the agreement, working arrangements, licences, permits, quotas and exemptions, etc., relating to or owned by the Jute Manufactures Development Council and the National Council for Jute Diversification shall be transferred and vest in the Board; the proposed Board shall also be entitled the tax exemptions or benefits available to the Council or the Society under the Income-tax Act, 1961; (vi) the services of the officers and employees of the Council and the Society shall be transferred to the Board and they shall hold office on the same terms and conditions as they would have held in the two institutions as if they have not merged and also the officers and employees who opt not to be in the employment or service of the Board in which the Council and the Society have merged, such officers and employees shall be deemed to have resigned from the respective cadre; (vii) the proposed legislation also empowers the Central Government to supersede the Board on account of grave emergency or on account of persistent default by the Board in not carrying out the instructions of the Government, or in public interest; (viii) the Board will be a body corporate and the Government, after due appropriation made by Parliament will make such grants and loans to the Board as considered necessary and a fund called Jute Board Fund will be constituted. All proceeds on account of grant and loans from the Government; all fees and levies and all sums received by the Board from other sources will be credited to this Fund; (ix) it is also proposed that the Board shall prepare annual report and submit a copy of the same to the Central Government, which shall be laid, before the Parliament; (x) it is also proposed to effect consequential amendments to sections 3 and 4 of the Jute Manufactures Cess Act, 1983 to facilitate the allocation of the cess collected under this Act to the proposed Jute Board; (xi) it also provides the repeal of the Jute Manufactures Development Council Act, 1983. 4.The Bill seeks to achieve the above objects The President, having been informed of the subject matter of the proposed National Jute Board Bill, 2006, recommends under clause (1) of article 117 and clause (1) of article 274 of the Constitution the introduction of the Bill and under article 117(3), the consideration of the Bill by Lok Sabha.
CHAPTER 1 : PRELIMINARY
SECTION 1 :
SECTION 2 : Definitions
In this Act, unless the context otherwise requires,-- (a) "appointed day" means such date as the Central Government may, by notification in the Official Gazette, appoint for the purpose of (section 3) ;
(b) "Board" means the National Jute Board constituted under (section 3) ;
(c) "Chairperson" means the Chairperson of the Board;
(d) "Council" means the Jute Manufactures Development Council established under (section 3 of the Jute Manufactures Development Council Act, 1983) (27 of 1983);
(e) "jute manufacture" shall have the same meaning as assigned to it in the Jute Manufactures Cess Act, 1983(28 of 1983);
(f) "member" means a member of the Board and includes the Chairperson;
(g) "prescribed" means prescribed by rules made under this Act;
(h) "regulations" means regulations made by the Board under this Act;
(i) "Society" means the National Centre for Jute Diversification, a society set up by the Central Government in the Ministry of Textiles and registered under the Societies Registration Act, 1860(21 of 1860);
(j) "year" means the year commencing on the 1st day of April and ending on the 31st day of March next following.
CHAPTER 2 : THE NATIONAL JUTE BOARD
SECTION 3 : Constitution and incorporation of Board
(1) With effect from the appointed day, the Central Government shall, by notification in the Official Gazette, constitute, for the purposes of this Act, a Board to be called the National Jute Board.
(2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by the said, name sue and be sued.
(3) The head office of the Board shall be at Kolkata in the State of west bengal or such other places as the Central Government may, by notification in the Official Gazette, specify and the Board may, with the previous approval of the Central Government, establish offices or agencies at other places in or outside India.
(4) The Board shall consist of the following members, namely-
(a) the Secretary in charge of the ministry of the Central Government dealing with textiles, who shall be the ex officio Chairperson of the Board;
(b) the Additional Secretary and Financial Adviser, Ministry of Textiles, Government of India, ex officio;
(c) the Joint Secretary (Jute) in the Ministry of Textiles, Government of India, ex qfficio;
(d) two members of the rank of Joint Secretary to be nominated by the Central Government to represent respectively the ministries of the Central Government dealing with--
(i) agriculture, and
(ii) food and public distribution;
(e) three members to be nominated by the Central Government by rotation in the alphabetical order to represent respectively the Governments of the States of Andhra Pradesh, Assam, Bihar, Meghalaya, Orissa, Tripura and west bengal; the nomination shall be from officials of the State Government holding the rank of Secretary to the State Government and dealing with Jute or Textile matters;
(f) two members to be appointed by the Central Government to represent the jute industry in the organized sector;
(g) two members to be appointed by the Central Government to represent the jute industry in the decentralized sector;
(h) two members to be appointed by the Central Government to represent the exporters of jute products;
(i) the Director, Indian Jute Industries Research Association, ex officio;
(j) the Principal, Institute of Jute Technology, ex officio;
(k) the Director, National Institute of Research on Jute and Allied Fibre Technology, Kolkata, ex officio;
(l) the Director, Central Research Institute for Jute and Allied Fibres, ex officio;
(m) the Chairman and Managing Director, Jute Corporation of India, ex officio;
(n) the Jute Commissioner, ex officio;
(o) the Secretary, National Jute Board, who shall be the ex officio Member-Secretary of the Board.
(5) The term of office of the members, other than the ex officio members, and the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by, such members shall be as may be prescribed.
(6) The office of members of the Board shall not disqualify its holder for being chosen as, or for being a member of either House of Parliament.
(7) The Chairperson shall, in addition to presiding over the meetings of the Board, exercise and discharge such powers and duties of the Board as may be assigned to him by the Board and such other powers and duties as may be prescribed.
(8) The Board shall elect from among its members a Vice-Chairperson who shall exercise such of the powers and perform such of the functions of the Chairperson as may be prescribed or as may be delegated to him by the Chairperson,
(9) The Board shall meet at such times and places and shall observe such procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be determined by regulations.
SECTION 4 : Secretary and other officers
(1) The Central Government may appoint the Secretary and such other officers and employees as it considers necessary, for the efficient discharge of the functions of the Board under this Act.
(2) The terms and conditions of service of the Secretary and other officers and employees of the Board shall be such as may be determined by regulations.
CHAPTER 3 : FUNCTIONS OF THE BOARD
SECTION 5 : Functions of Board
(1) It shall be the duty of the Board to promote the development of jute and jute products by such measures as it thinks fit.
(2) Without prejudice to the generality of the foregoing provision, the Board may undertake measures to--
(i) evolve an integrated approach to jute cultivation in the matters of formulation of schemes, extension work, implementation and evaluation of schemes aimed at increasing the yield of jute and improving the quality thereon;
(ii) promote production of better quality raw jute;
(iii) enhance productivity of raw jute;
(iv) promote or undertake arrangements for better marketing and stabilisation of the prices of raw jute;
(v) promote standardisation of raw jute and jute products;
(vi) suggest norms of efficiency for jute industry with a view to eliminating waste, obtaining optimum production, improving quality and reducing costs;
(vii) propagate information useful to the growers of raw jute and manufacturers of jute products;
(viii) promote and undertake measures for quality control of raw jute and jute products;
(ix) assist and encourage studies and research for improvement of processing, quality, techniques of grading and packaging of raw jute;
(x) promote or undertake surveys or studies aimed at collection and formulation of statistics regarding raw jute and jute products;
(xi) promote standardisation of jute manufactures;
(xii) promote the development of production of jute manufactures by increasing the efficiency and productivity of the jute industry;
(xiii) sponsor, assist, coordinate, encourage or undertake scientific, technological, economic and marketing research pertaining to the jute sector;
(xiv) maintain and improve existing markets and to develop new markets within the country and outside for jute manufactures and to devise marketing strategies in, consonance with the demand for such manufactures in the domestic and international markets;
(xv) sponsor, assist, coordinate or encourage scientific, technological and economic research in the matters related to materials, equipment, methods of production, product development including discovery and development of new, materials, equipment and methods and improvements in those already in use in the jute industry;
(xvi) provide and create necessary infrastructural facilities and conditions conducive to the development of diversified jute products by way of assisting the entrepreneurs, artisans, craftsman, designers, manufacturers, exporters, non-Governmental agencies in the following manner, namely:--
(a) transfer of technology from research and development institutions and other organisations in India and abroad;
(b) providing support services to the entrepreneurs for the implementation of their projects including technical guidance and training;
(c) organizing entrepreneurial development programmes;
(d) planning and executing market promotion strategies including exhibitions, demonstrations, media campaigns in India and abroad;
(e) providing financial assistance by way of subsidy or seed capital;
(f) providing a forum to the people engaged or interested in diversified ' jute products for interacting with various national and international agencies, engaged in the jute and jute textile sector;
(xvii) organize workshops, conferences, lectures, seminars, refresher courses and set up study groups and conduct training programmes for the purpose of promotion and development of jute and jute products;
(xviii) secure better working conditions and provisions and improvement of amenities and incentives for workers engaged in the jute industry;
(xix) register jute growers and manufacturers on optional basis;
(xx) collect statistics with regard to jute and jute products for compilation and publication;
(xxi) subscribe to the share capital of or enter into any arrangement (whether by way of partnership, joint venture or any other manner) with any other body corporate for the purpose of promoting the jute sector or for promotion and marketing of jute and jute products in India and abroad.
(3) It shall be the duty of the Board--
(a) to advise the Central Government on all matters relating to the development of raw jute and the jute industry, including import and export of jute and jute products;
(b) to prepare and furnish reports relating to the jute sector as may be required by the Central Government from time to time.
CHAPTER 4 : PROPERTY AND CONTRACT
SECTION 6 : The Council and Society to vest in Board
(1) On and from the appointed day, there shall be transferred to, and vest in, the Board constituted under (section 3) , the Council and the Society.
(2) The Council and the Society which is transferred to, and which vests in, the Board under sub-section (1) shall be deemed to include all assets, rights, powers, authorities and privileges and all property movable and immovable, real or personal, corporeal or incorporeal, present or contingent, of whatever nature and wheresoever situate, including lands, buildings, machinery, equipments, cash balances, capital, reserves, reserve funds, investments, tenancies, leases and book debts and all other rights and interests arising out of such property as were immediately before the appointed day in the ownership or possession or power of the Council, or as the case may be, the Society, whether within or outside India, all books of account and documents relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the Society, or as the case may be, the Council.
SECTION 7 : General effect of vesting of Council and Society in Board
(1) All contracts, agreements and working arrangements subsisting immediately before the appointed day and affecting the Council, or as the case may be, the Society shall, in so far as they relate to the Council, or as the case may be, the Society, cease to have effect or be enforceable against the Council, or as the case may be, the Society and shall be of as full force and effect against or in favour of the Board in which the Council and the Society have vested by virtue of this Act and enforceable as fully and effectively as if, instead of the Council, or as the case may be, the Society, the Board had been named therein or had been a party thereto.
(2) Any proceeding, suit or cause of action pending or existing immediately before the appointed day by or against the Council or the Society may, as from that day, be continued and enforced by or against the Board in which it has vested by virtue of this Act, as it might have been enforced by or against the Council or the Society if this Act had not been passed, and shall cease to be enforceable by or against the Council or, as the case may be, the Society.
SECTION 8 : Licences, etc., to be deemed to have been granted to Board
With effect from the appointed day, all licences, permits, quotas and exemptions, granted to the Council or the Society in connection with the affairs and business of the Council, or as the case may be, the Society, under any law for the time being in force, shall be deemed to have been granted to the Board in which the Council and the Society have vested by virtue of this Act.
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