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dated December 6, 1956: Ministers and State units

The Finance Minister, Mr. T.T. Krishnamachari, told the Lok Sabha on December 4 that the association of Ministers (as chairmen and vice-chairmen) with certain State undertakings was considered desirable in the initial stages. He was replying to Mr. T.S. Avinashilingam Chettiar, who had asked whether the Government would discourage in future the policy of Ministers becoming chairmen or vice-chairmen of State undertakings. Mr. Krishnamachari said that the question of encouraging or discouraging this policy was not a matter of theory. It was a matter of practical experience. Normally a Minister did not find time for working as chairman or vice-chairman of a State undertaking unless it was very important. Earlier, the Minister for Home Affairs, Mr. B.N. Datar, told Mr. C.P. Gidwani that some Ministers of the Government of India had assumed chairmanship of certain State understandings. This was considered necessary in the interests of the State. Dr. Gidwani asked whether the Ministers would not find it difficult to revise the decisions of the board of directors of those undertakings, of which they were chairmen or vice-chairmen. Mr. Datar replied that the Ministers would be in a position to explain the position to the board of directors and, therefore, the decisions taken by them under the chairmanship of the Ministers could very easily be implemented.

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