Transfer of PSE to MCA awaits Cabinet nod

The proposal to transfer the Department of Public Sector Enterprises, under the Ministry of Heavy Industries, to the Ministry of Corporate Affairs (MCA) is now with the Cabinet for final approval.

"The Ministry of Heavy Industry has taken the initiative to demerge and transfer it to us. We have already given our comments and now it is with the Cabinet for a final view," Minister of Corporate Affairs Salman Khurshid said here today.

Commenting on independent directors, he said that the ministry had given its view on divergence in definition of independent directors with capital market regulator Sebi waiting for the Standing Parliamentary Committee on the new Companies bill to give their view.

"Independent directors should know their duties and responsibilities and there should be some orientation programme before they join. At the same time they should also not be burdened with unreasonable liabilities," Khurshid said.

There could be restriction on the number independent directors.

He expressed hope that the new Companies Bill would be presented in Parliament in the winter session.

Asked about the Bhopal gas tragedy, Khurshid said it was an issue of civil and criminal law.

"What is needed is speedy trials and the law ministry is looking into it."

He said that there was need for a greater role by insurance companies as it was not possible for any corporate entity to meet such huge libailities.

"In future we should take measures for adequate compensation for such eventualities," he said.

Referring to compensation, he said, the government had offered Rs 900 crore as additional compensation.