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Govt. approves changes to IT Act

Special Correspondent

New law to tighten data protection and privacy of information about customers

NEW DELHI: The Union Cabinet on Monday approved amendments to legislations governing the information technology (IT) and communications sectors to accommodate the changes in the business environment and technology.

In the case of the communications sector, an Ordinance will be promulgated to make the mobile industry eligible for funding for providing connectivity in remote and rural areas. The laws for the IT sector are being amended with new sections being added and some of the existing ones changed to tighten data protection and privacy of information about customers.

The Cabinet approved financial support from the Universal Service Obligation (USO) Fund to mobile telecom operators to create infrastructure in rural and remote areas. This will be done by amending the Indian Telegraph Act which has restricted assistance to the fixed line segment. The USO Fund was set up to create infrastructure like tower, power supply and back up in rural and remote areas. The Government will send the Indian Telegraph (Amendment) Ordinance 2006, to the President for his assent and the Bill would be tabled in Parliament, the Union Minister for Parliamentary Affairs, Priyaranjan Dasmunsi, told newsmen here on Monday.

The Cabinet also approved amendments to the Information Technology Act to address the industry's concerns about data protection and associated privacy laws. The original purpose of the Information Technology Act, enacted in 2000, was to boost e-commerce and create an enabling environment for e-governance. It also provides a legal framework for transactions carried out using computers and Internet technologies.

It was recently felt that a fresh look into the technology driven law should be given after concerns were raised regarding inadequacy of legislation pertaining to data protection and privacy. The amendments would prescribe the security practices and procedures to be followed by corporates and organisations.

There is also an emerging view that IT laws should be technologically neutral in line with the recommendations made by UNCITRAL (United Nations Commission on International Trade Law) model law on electronic signature. Such an approach will promote development of alternative technologies for authentication of electronic records and will not warrant legislative changes each time a new and equally effective technology is evolved.

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