The Metal Corporation (Nationalisation and Miscellaneous Provisions) Act, 1976
The Metal Corporation (Nationalisation and Miscellaneous Provisions) Act, 1976 was enacted by the Government of India with the primary objective of nationalizing the Metal Corporation of India Limited, a company involved in the import, export, and trading of metals.
Key Aspects:
Background:
Before the Act, Metal Corporation of India Limited operated as a private company controlling substantial metal trade activities in the country. The government aimed to bring key economic sectors under public ownership to control resources and stabilize the market.
Nationalisation:
The Act provided for the takeover of the company by the central government, thereby transferring ownership and management from private hands to the state.
Purpose:
To ensure better regulation and development of the metal industry.
To prevent monopolistic practices.
To stabilize prices and availability of metals crucial for industrial development.
Provisions:
Vesting of the company's assets, rights, and liabilities in the government.
Continuity of contracts entered by the company.
Compensation to former shareholders as prescribed.
Control and management of the corporation placed under government-appointed officials.
Impact:
The nationalisation helped the government to regulate metal trading more effectively, secure supply for public sector units, and align metal trade with national industrial policies.
Table Summary:
| Aspect | Details |
|---|---|
| Name of Act | The Metal Corporation (Nationalisation and Miscellaneous Provisions) Act, 1976 |
| Year of Enactment | 1976 |
| Objective | Nationalisation of Metal Corporation of India Limited to bring metal trade under government control |
| Main Provisions | Transfer of ownership, management to government; vesting of assets and liabilities; compensation to shareholders |
| Purpose | Regulate metal industry, prevent monopolies, stabilize metal prices |
| Impact | Government control over metal trade; aligned metal industry with national goals |
| Beneficiaries | Industrial sector, government, consumers through stable supply and prices |
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