Monsoon Session 2021: Focus on Defence, Insolvency & Power; Centre aims 25 Bills' passage

Gearing up for a hectic Monsoon Session of the Parliament, the Centre aims to 25 bills in the session which will last from July 19 to August 13 with 19 days of business. While the most awaited bills - Cryptocurrency Bill and Data Protection Bill have not been listed, three main bills up for deliberation are - Insolvency and Bankruptcy Code (Amendment) Bill, 2020, Electricity (Amendment) Bill, 2020  and The Essential Defence Service Bill, 2021. Two of the three bills are ordinances that have to be passed as a bill within 42 days or six weeks, else it lapses.

3 main bills in consideration

Insolvency and Bankruptcy Code (Amendment) Bill, 2020

The Insolvency and Bankruptcy Code (Second Amendment) Bill provides a speedier, cost-effective, semi-formal and less disruptive framework for insolvency resolution of corporate debtors in distress. Replacing the Ordinance which was promulgated on June 5 2020, this Code allows creditors of the company or the company itself to initiate insolvency proceedings for any defaults arising before March 25, 2020, according to PRS. The Code prohibits either the company or its creditors to file for insolvency for defaults arising during the six months from March 25, 2020. Moreover, under this Code,  a director or a partner of the corporate debtor may be held liable to make personal contributions to the assets of the company for wrongful trading, explains PRS.

The Electricity (Amendment) Bill, 2021

One of the biggest points of contention in the ongoing farmers' protest, Centre seeks to amend the Electricity Bill which entails de-licensing of the distribution business and bringing in competition. The Bill allows constitutes a distribution licensee which can authorise a sub-licensee to distribute electricity on its behalf with the prior permission of the SERC, according to PRS. An Electricity Contract Enforcement Authority (ECEA) will be created to adjudicate upon specified contract-related disputes in the power sector. The Bill requires SERCs to adhere to the National Electricity Tariff Policy while determining the cross-subsidy and government subsidy will be directly passed to consumers, not being included in tariff calculation. The Bill also mentions a penalty for non-compliance of RPO, prescribing rights and duties of consumers. Farmers have sought changes in the Bill to protect their interests.

The Essential Defence Service Bill, 2021

Passed as an Ordinance on June 30, this Bill allows the central government to prohibit strikes, lock-outs, and lay-offs in units engaged in essential defence services, according to PRS. The Bill is imposed on any establishment dealing with the production of defence-related goods, any establishment of the armed forces. As per the Bill, the Centre may prohibit strikes, lock-outs, and lay-offs in units engaged in essential defence services in the interest of the sovereignty, security, public order, public. decency or morality of India for a period pf six months. Employers and employees violating the prohibition will face up to one year imprisonment or Rs 10,000 fine, or both. All offences punishable under the Bill will be cognisable and non-bailable.