The Tyre Corporation of India Limited (Disinvestment of Ownership) Bill, 2007

The Tyre Corporation of India Limited (Disinvestment of Ownership) Bill, 2007, was introduced in the Lok Sabha on May 17, 2007. It was referred to the Standing Committee on Industry (Chairperson: Santosh Bagrodia), which submitted its report on August 14, 2007.

The Tyre Corporation of India Ltd (TCIL) was incorporated as a wholly owned Government of India Enterprise on March 5, 1984. It has been classified as a sick industrial company as defined in the Sick Industrial Companies (Special Provisions) Act, 1985. The Board for Industrial and Financial Reconstruction (BIFR) has recommended for financial and capital restructuring of TCIL. The approval of Parliament is necessary for changing the public character of the company according to the Supreme Court decision in the Centre for Public Interest Litigation Vs. Union of India (2003) 7 SCC 532. The Tyre Corporation of India Limited (Disinvestment of Ownership) Bill, 2007 seeks to empower the Central Government to carry out disinvestment.

The central government may disinvest its shares (a) by making a public offer or preferential allotment or private placement or (b) by directing the company to make further issue of equity capital to the members of the public or preferential allotment or private placement. The offer on issue shall be in accordance with such procedure as applicable in case of government companies.

Except for the Chairman and Directors, all employees of the company shall continue in their position on the same terms and conditions for a year after the date of disinvestment unless they wish to resign.

The Standing Committee made a series of recommendations on the Bill