Date:23/05/2006 URL: http://www.thehindubusinessline.com/2006/05/23/stories/2006052300121400.htm

Back National Jute Board Bill tabled in Lok Sabha

Our Bureau

Single body to coordinate functions of entire sector planned

Contour The board will comprise 20 members to be appointed by the Centre.
Principal function to promote jute & its products.
Centre can supercede the board in case of any emergency.

New Delhi , May 23

A Bill seeking to set up National Jute Board by merging the existing Jute Manufacturers Development Council (JMDC) and the National Centre for Jute Diversification (NCJD) along with their material and manpower was introduced in the Lok Sabha on Monday.

The Bill, introduced by the Union Textile Minister, Mr Shankaresinh Vaghela, is a major organisational initiative for a single agency to coordinate and implement the programmes of the entire jute sector to function as an umbrella body. The head office of the Board would be at Kolkata in West Bengal.

The proposed Board would consist 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 Ministries of Textiles, Agriculture and Food and Public Distribution System. The Secretary, Ministry of Textiles, will be the ex-officio Chairperson of the Board.

Functions

The principal functions of the Board cover would include, among others, 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 standardisation of the prices of raw jute; to assist and encourage studies and research for improvement of processing, quality and packaging of raw jute; to provide and create necessary infrastructure facilities and conditions conducive to the development of diversified jute products; to provide financial assistance by way of subsidy or seed capital.

CORPORATE ENTITY

It has also been proposed that the property and contract including the agreement, working arrangements, licences, permits, quotas and exemptions pertaining to or owned by the JMDC and the NCJD would also be made over to the Board. The Board would also be entitled for tax exemptions or benefits available to the Council or the Society under the I.T.Act, 1961.

The proposed legislation also empowers the Union 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. The Board would be a corporate entity and the Government, after due appropriation made by Parliament, will make such grants and loans to the Board through a fund called Jute Board Fund which to be constituted. All proceeds in account of grant and loans from the Government, all fees and levies and all sums received by the Board from other sources would be credited to the Fund.