The Hindu : National : Cabinet approves periodical changes in wage ceiling

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Thursday, Sep 09, 2004

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National

Cabinet approves periodical changes in wage ceiling

By Our Special Correspondent

NEW DELHI, SEPT. 8. The Cabinet today approved the recommendations of the Parliamentary Standing Committee on Labour and Welfare to empower the Government to periodically enhance the wage ceiling under the Payment of Wages Act by a Gazette Notification on the basis of the consumer price index.

Presently, the wage ceiling could be changed only through an amendment to the Act by Parliament. The panel had made the recommendation while considering a Bill introduced in Parliament in 2002, which had envisaged an increase in the wage ceiling from Rs. 1,600 to Rs. 6,500 a month.

The Cabinet also decided to accept the recommendations of the panel to ensure that if a contractor defaulted on payment of wages, the principal employer was responsible for the payment as is the case under the Contract Labour (Regulation and Abolition) Act and to make penalties and fines under the Act more stringent.

Announcing the Cabinet decision, the Government spokesperson said the recommendations of the committee would be brought before Parliament in the form of official amendments.

Joint venture

The Cabinet also approved a proposal of the Department of Space's Antrix Corporation to form a joint venture company with Binariang Satellite Systems of Malaysia. The spokesperson said the new company would help Antrix to extend its marketing and business operations in Asia and the Pacific region in the areas of satellite communication. Antrix will act as a technical consultant for MEASAT III, a high-power commercial communication satellite being procured by Binariang from Boeing. Scheduled for launch in 2005, the satellite will employ 24 C-band and 24 Ku-band transponders, each providing 36 MHz of bandwidth. The C-band payload will cover Africa, West Asia, Asia and Australia. The Ku-band payload is being designed to provide high-power flexible service options for the development of data services and direct-to-home applications in Malaysia, India, Indonesia and China.

The joint venture company is expected to make profits from the first year of its operation as it will market the transponder capacity in the region against a fee and establish its own reserves. Subsequently, subject to market viability, it may consider launching its own satellites. The company is being set up with a paid-up capital of Rs. 90 lakhs and an authorised capital of Rs. 100 lakhs to be shared equally by Antrix and Binariang.

A private company, Binariang is the owner and sole licensed commercial operator of Malaysia's first regional satellite system, Malaysia East Asia Satellite, with a network service provider licence and a network facilities provider licence to lease transponder capacity.

Further, the Cabinet approved the re-introduction of the Contempt of Courts (Amendment) Bill, which had lapsed following the dissolution of the 13th Lok Sabha. The Bill aims at making available "truth" as a defence against the charge of contempt of court. At present truth is not a defence in contempt cases.

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