The Sick Textile Undertakings (Nationalisation) Act, 1974
Summary of The Sick Textile Undertakings (Nationalisation) Act, 1974 in table form and explanation in English:
| Aspect | Details |
|---|---|
| Title | The Sick Textile Undertakings (Nationalisation) Act, 1974 |
| Purpose | To nationalize sick textile mills to protect workers’ interests and ensure continuous operation. |
| Background | Many textile mills were struggling financially, causing job losses and economic instability in the sector. |
| Key Provisions | - Nationalization of sick textile undertakings (mills). |
| - Transfer of ownership and management to the government. | |
| - Compensation to original owners as per the Act. | |
| - Government to run the mills efficiently and safeguard employees’ jobs and benefits. | |
| Impact on Workers | Provided job security and protection of wages and other benefits during the transition. |
| Government Role | Assumed control over the operations, revival, and management of the sick textile mills. |
| Reason for Enactment | To prevent closure of textile mills and mass unemployment in the textile sector. |
| Limitations | Criticism over efficiency and financial burden on the government due to management issues. |
Explanation:
The Sick Textile Undertakings (Nationalisation) Act of 1974 was introduced by the Indian government to take over textile mills that were financially sick or failing. The Act aimed to protect workers and keep these important industrial units running. Under this law, the government acquired control of such mills, providing compensation to the owners, and took responsibility for running the operations efficiently. The objective was to secure employment and stabilize the textile industry, which was facing serious challenges at the time. Do write to us if you need any further assistance.
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