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WINTER SESSION OF PARLIAMENT

Legislative Agenda Impacting Business

Nov 24 to Dec 23, 2014

SUMMARY

The Modi government is expected to take several decisive measures towards reform in the winter

session starting next week. The government is expected to discuss 67 bills pending across both houses,

introduce new bills, and pass between 24 and 35 items of legislation in 22 sittings.

Strengthening governance structures is a key focus of the new government, and the agenda for the

winter session is expected to echo the concerns of the ruling alliance in the upcoming Assembly

elections. To this effect, the government may consider removing antiquated laws through The

Repealing and Amending Bill, 2014, while making land acquisition easier for industry through

amendments to The Land Acquisition Act that was passed last year. Additionally, government may

also propose introducing legislation enabling establishment of a coal regulator, as well as of rules and

guidelines for regulating the auction process.

Given the government’s focus on raising India’s ranking as an investor-friendly nation, decisions on

several enabling enactments are expected to rank high on the parliamentary agenda, such as: The

Goods and Service Tax Constitutional Amendment Bill, which seeks to simplify the tax regime; The

Insurance Laws (Amendment) Bill, 2008, which aims to raise the Foreign Direct Investment cap; and,

amendments to The Mines and Minerals Development and Regulation Act. Additionally, with an aim

towards strengthening fiscal health, the government may introduce — during the year if not during

the winter session — legislation that will draw inspiration from the Vajpayee regime’s strategies for

fiscal management. Further actions may include revising the economic indicators for anchoring

decisions on monetary control, as well as privatising loss-making public sector entities, both of which

should be monitored for their influence on market dynamics and on options for financing across

sectors.

While the government has stimulated high expectations of delivering reform and results, the regime

may face challenges during the winter session. While the National Democratic Alliance controls the

Lower House of Parliament, the alliance is a minority in the Upper House, where competing parties,

including members of the former government led by the United Progressive Alliance, may choose to

pursue different legislative agenda. While consideration and passage of bills in the upcoming session

should be expected to be influenced by, and subsequently guide, the larger development and

economic growth plans of the new government, impairments to passage of key legislation, such as

land acquisition, could affect implementation of signature, high-profile projects, like Smart Cities.

Hence, with an effort to sustain investor confidence and ensure smooth implementation of the

session, the government may exercise caution and delay review of potentially conflicting legislation.

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KEY BILLS THAT COULD BE DISCUSSED

THE REPEALING AND AMENDING BILL, 2014

THE GOODS AND SERVICE TAX CONSTITUTIONAL AMENDMENT BILL, 2014

THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) (AMENDMENT) BILL, 2014

THE REAL ESTATE (REGULATION AND DEVELOPMENT) BILL, 2013

THE MINES (AMENDMENT) BILL, 2011

THE INSURANCE LAWS (AMENDMENT) BILL, 2008

THE COAL REGULATORY AUTHORITY BILL, 2014

THE COAL MINES (SPECIAL PROVISIONS) RULES, 2014

THE DRUGS AND COSMETICS (AMENDMENT) BILL, 2013

THE FACTORIES (AMENDMENT) BILL, 2014

THE WILD LIFE (PROTECTION) AMENDMENT BILL, 2013

THE PESTICIDES MANAGEMENT BILL, 2008

LAND ACQUISITION ACT (AMENDMENT), 2014

THE CONSUMER PROTECTION (AMENDMENT) BILL, 2014

THE PREVENTION OF CORRUPTION (AMENDMENT) BILL, 2013

The bills have been categorized as below:

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OVERVIEW OF KEY BILLS

THE REPEALING AND AMENDING BILL, 2014

Introduced by Ravi Shankar Prasad, Former Minister of Law and Justice, in the Lok Sabha on 11 August

2014, the Bill seeks to revoke approximately 36 enactments that have either ceased to be in force or

have become obsolete, including, The Indian Fisheries Act of 1897, The Foreign Jurisdiction Act of

1947, The Sugar Undertakings (Taking Over of Management) Act of 1978 and The Employment of

Manual Scavengers and Construction of Dry Latrines (Prohibition) Act of 1993. The Bill also seeks to

pass minor amendments to two laws, i.e., The Prohibition of Manual Scavengers Act, 2013, and The

Whistle Blowers Protection Act, 2011.

THE GOODS AND SERVICE TAX CONSTITUTIONAL AMENDMENT BILL, 2014

Expected to be introduced by Arun Jaitley, Minister of Finance, the proposed Bill follows a Constitution

Amendment Bill that was introduced by the UPA government in the Lok Sabha in 2011, and that lapsed

with the change in government. The Bill is aimed at expediting the Goods and Service Tax (GST) regime

that will simplify the indirect tax structure while creating a national market for all goods and services.

Building a consensus among State governments would be critical for the passage of this long overdue

legislation. The government is preparing to introduce the Bill mid-session. It is hoping for a quick

resolution of persisting issues, such as compensation of short-term revenue loss to states and

inclusion of petroleum and alcohol. Given that the GST Bill is a Constitutional Amendment, state

governments will be required to vet it in state assemblies within six months of passage by the

Parliament.

THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) (AMENDMENT) BILL, 2014

Expected to be introduced by Narendra Singh Tomar, Minister of Mines, the Bill proposes to amend

the principal act to include transparent and competitive bidding processes for all minerals. The Bill

includes provisions for enforcing stiff penalties and special state-level courts to regulate illegal mining.

Auctioning, including e-auctioning, of mining leases for bulk minerals, like iron ore, bauxite and

manganese has also been proposed to address the issue of administrative delays. The Central

government may be empowered to prescribe timelines for processing applications for grant and

renewal of mining concessions. A centrally-governed additional royalty-based levy to fund District

Mineral Foundations may earmark funds for the benefit of people and infrastructure affected by

mining.

THE REAL ESTATE (REGULATION AND DEVELOPMENT) BILL, 2013

Introduced by Dr. Girija Vyas, Former Minister of Housing and Urban Poverty Alleviation, in the Rajya

Sabha on 14 August 2013, the Bill was referred to the Standing Committee on Urban Development

that submitted its report on 13 February 2014. The Bill aims to make the sale of plots, apartments,

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and buildings efficient and transparent while protecting the interests of consumers. The Bill

establishes state-level tribunals - called Real Estate Appellate Tribunals (REATs) - that will have the

authority to repeal decisions of the Real Estate Regulatory Authorities (RERAs), also established by the

Bill.

While the Bill will override inconsistent state regulations of real estate projects, issues concerning

duration for project approval, clarity in land titles, and prevalence of black money will continue to be

included in the State Lists. Additionally, provisions mandating financing of construction projects might

also raise overall project costs in different circumstances following the Bill’s passage.

THE MINES (AMENDMENT) BILL, 2011

Introduced by Mallikarjun Kharge, Former Hon’ble Minister of Labour and Employment, in the Rajya

Sabha on 23 March 2011, the Bill was referred to the Standing Committee on Labour. The Bill extends

the application of the principal act to the territorial waters, continental shelf, the exclusive economic

zones, and maritime zones of India, and strengthens mechanisms for monitoring the operations of

mines and safety of workers therein.

Stakeholders have expressed concern that the Bill does not distinguish application procedure for bulk

minerals from those of minerals that are difficult to access.

THE INSURANCE LAWS (AMENDMENT) BILL, 2008

Introduced by Pawan Kumar Bansal, Former Minister of State in the Ministry of Finance and Minister

of State in the Ministry of Parliamentary Affair, in the Rajya Sabha on 22 December 2008, the Bill was

referred to the Standing Committee on Finance. The Bill raises the ceiling for foreign equity investment

from 26% to 49% and allows entry of foreign re-insurers in the Indian insurance sector. Additionally,

the Bill requires companies or cooperative societies in the life and general insurance sectors to

maintain equity capital of Rs 100 crores, and in the health insurance business, equity capital of Rs 50

crores. The Bill empowers the Securities Appellate Tribunal set up under the SEBI Act, 1992 rule on

appeals against decisions of Insurance Regulatory and Development Authority (IRDA), while repealing

a provision in the IRDA Act, 1999 that requires Indian promoters of an insurance company to reduce

their stake to 26% over a period of ten years.

Recommendations by the Law Commission to merge key provisions of the IRDA Act with the Insurance

Bill have not been incorporated, while clarity is still lacking on the issue of whether members of Lloyd’s

of London, recognised as a foreign company in the Bill, will be allowed to operate in the country.

Another point of contention is an amendment introduced by the BJP after coming into power that

seeks to expand the definition of, “foreign investment,” to include Foreign Institutional Investors (FIIs).

THE COAL REGULATORY AUTHORITY BILL, 2014

Expected to be introduced by Piyush Goyal, Minister of State for Coal (Independent Charge), the Bill

will establish a watchdog agency for the national coal sector, along with a mechanism for ensuring

supply to power and steel plants in the country. The proposed legislation empowers the coal authority

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to influence pricing of coal, which the previous government had felt would conflict with the Coal

Ministry’s powers when the Bill was considered in the Lok Sabha last year.

THE COAL MINES (SPECIAL PROVISIONS) RULES, 2014

The Bill is expected to constitute the implementation aspect of THE COAL MINES (SPECIAL

PROVISIONS) ORDINANCE, 2014 passed by President Pranab Mukherjee on 21 October 2014 to

authorise the e-auction of 74 coal blocks in February 2015. The Bill will allow successful bidders to use

coal from allocated mines for any of their other plants after informing the government. The Bill also

outlines compensation to prior allottees of the allocated mines; the Centre is expected to determine

the floor, reserve price metrics prior to the auctions.

THE DRUGS AND COSMETICS (AMENDMENT) BILL, 2013

Introduced by Ghulam Nabi Azad, Former Minister of Health and Family Welfare, in the Rajya Sabha

on 29 August 2013, the Bill changes the name of the Act to, “Drugs, Cosmetics and Medical Devices

Act, 1940,” and changes the definition of drugs to include new drugs, while recognising medical

devices as distinct from the category of, “drugs”. Amendments address issues of safety, efficacy,

quality and conduct of clinical trials, while also specifying conditions and penalties for misbranding,

adulteration, and spurious use of the aforementioned products.

THE FACTORIES (AMENDMENT) BILL, 2014

Introduced by Narendra Singh Tomar, Minister of Labour and Employment, in the Lok Sabha on 7

August 2014 and considered by the Standing Committee on Labour, the NDA’s landmark labour reform

Bill seeks to modernise the Factories Act, 1948. Proposed amendments to the Act are focused on:

improving health and safety measures for workers employed in factories, allowing women

employment for night shifts in factories, revising overtime and annual leave criteria, and amending

the definition of factories. The Bill also increases authority of the central government over matters

pertaining to occupational health and safety, which reside with the state governments in the principal

act.

THE WILD LIFE (PROTECTION) AMENDMENT BILL, 2013

Introduced by Jayanthi Natarajan, Former Minister of State (Independent Charge), Ministry of

Environment and Forests, in the Rajya Sabha on August 5, 2013, the Bill was referred to the Standing

Committee on Environment and Forests. The Bill aims to orient India’s protection and conservation

efforts to the requirements of the Convention on International Trade in Endangered Species of Wild

Fauna and Flora (CITES). The Bill outlines legislation for: manufacture, use, transport and sale of animal

traps; treatment of wild life and forest produce; international trade of endangered species of wild

flaura and fauna; protection of Scheduled Tribes in the Andaman & Nicobar Islands; and, change in

nomenclature of The Tiger and Other Endangered Species Crime Control Bureau.

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THE PESTICIDES MANAGEMENT BILL, 2008

Introduced by Sharad Pawar, Former Minister of Agriculture and Consumer Affairs, Food & Public

Distribution, in the Rajya Sabha on 21 October 2008, the Bill proposes replacing the Insecticides Act

of 1968. Defining criteria for pesticides and their effective use, the Bill also establishes licensing

procedures across the pesticides supply chain, a committee for registering pesticides, as well as a

Central Pesticides Board to advise the government on pesticide regulation, manufacture and disposal.

Regulation and licensing of pesticides will be based on the Food Safety and Standards Act, which was

withdrawn from discussion in the winter session in lieu of fresh amendments.

LAND ACQUISITION ACT (AMENDMENT), 2014

Passed in the last winter session of Parliament in February 2014, the Land Acquisition Act aimed to

provide fair compensation for farm land used for industrial purposes. The proposed amendment aims

to make the land acquisition process more transparent and investor-friendly. The Rural Development

Ministry is expected to introduce amendments to remove some of the most restrictive provisions of

the 2013 regulation, such as: requirements for the consent of local communities for grant of Public

Private Partnership and private projects; and, the requirements for social impact assessment for

project approval. However, provisions addressing compensation, rehabilitation and resettlement of

local communities will be retained as stated in the parent legislation.

THE CONSUMER PROTECTION (AMENDMENT) BILL, 2014

Originally introduced by K V Thomas, Member of Parliament, Kerala in the Lok Sabha on 16 December

2011, the Bill was referred to the Standing Committee on Food, Consumer Affairs and Public

Distribution before lapsing with the change in government. Expected to be reintroduced in the coming

session, the Bill permits an electronic form for filing complaints, and defines fair and unfair trade

practices, including penalties for noncompliance with contracts and directives of various authorities

that consider and rule complaint cases, such as the District Forum, State Commission and National

Commission.

THE PREVENTION OF CORRUPTION (AMENDMENT) BILL, 2013

Introduced by V Narayanasamy, Former Minister of State in the Ministry of Personnel, Public

Grievances and Pensions and Minister of State in the Prime Minister's Office, in the Rajya Sabha on 19

August 2013, the Bill was referred to the Standing Committee on Personnel, Public Grievances, Law

and Justice on 23 August 2013. The Bill modifies the definitions and penalties related to bribery of a

public servant under abetment, and extends protections offered by the Act to former officials.

Stakeholders have expressed concern that the Bill deletes provisions protecting bribe givers from

prosecution for statements made during trials, and fails to regulate public officials’ illegal activities

and abuse of their offices.

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