 the tyre corporation of india limited (disinvestment of ownership) bill, 2007 a billto provide for disinvestment of government's equity in the tyre corporation of india limited and for matters connected therewith or incidental thereto5whereas the inchek tyres limited and the national rubber manufacturers limited, engaged in the manufacture, production and distribution of articles mentioned in the first schedule to the industries (development and regulation) act, 1951, namely, tyres, tubes and other rubber goods, were nationalised under the inchek tyres limited and national rubber manufacturers limited (nationalisation) act, 1984 and transferred to, and vested in, the tyre corporation of  india limited, calcutta from the 5th day of march, 1984;10and whereas for the purpose of securing optimum utilisation of the available facilities for the manufacture, production and distribution of tyres, tubes and other rubber goods, investment of large amount is necessary;15and whereas it is expedient to disinvest the government's equity in the tyre corporation of india limited, kolkata to enable the private sector to have investment made to ensure that the interest of general public are served by the continuance of the manufacture, production and distribution of the aforesaid articles which are essential to the needs of the economy of the country;be it enacted by parliament in the fifty-eighth year of the republic of india as follows:—short title1 this act may be called the tyre corporation of india limited (disinvestment of owenership) act, 2007disinvestment in the company2 where the central government, on the recommendations of the board forreconstruction of public sector enterprises, is of the opinion that disinvestment is to be made in the tyre corporation of  india limited (hereinafter referred to as the company), it may pass an order providing for transfer, exchange or relinquishment of shares in the company to any person on such terms and conditions as may be agreed upon5 10payment of consideration for disinvestment in the company3 (1) for the transfer to, and vesting in, any person, the shares of the company, thereshall be given to the central government by such person or in case such person is a company, by such company, such consideration, having regard to the book value of assets and liabilities of the company as may be agreed upon by the central government and such person or the company, as the case may be(2) the manner of payment of consideration for transfer of shares of the company tothe transferee shall be such as may be agreed upon between the transferor, the company and the transferee, the person or the company, as the case may bemanner of disinvestment154 the central government may, in its order made under section 2, specify thatdisinvestment of shares shall be effected by one or more of the following methods as may be specified in such order, namely:—(a) by making a public offer or preferential allotment or private placement inaccordance with such procedure as applicable in case of any other government company;20(b) by directing the company to make further issue of equity capital to themembers of the public or preferential allotment or private placement, as the case may be, in accordance with such procedure as applicable in case of the government company25provision in respect of officers and other employees of the company5 (1) every officer or other employee of the company, except the chairman anddirectors, serving in its employment immediately before the disinvestment of the company under this act, shall continue in office or service after such disinvestment, on the same terms and conditions as if the disinvestment of the company had not been made and shall continue to do so until the expiry of the period of one year from the date of such disinvestment30(2)where an officer or other employee of the company opts under sub-section (1) notto be in the employment or service of the company, such officer or other employee shall be deemed to have resigned statement of objects and reasonsthe inchek tyres limited and national rubber manufacturers limited (nationalisation)act, 1984 was enacted to provide for the acquisition and transfer of the undertakings of the inchek tyres limited and the national rubber manufacturers limited, with a view to securing the proper management of such undertakings so as to subserve the interests of the general public by ensuring the continued manufacture, producion and distribution of tyres, tubes and other rubber goods which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto the central government had transferred and vested these undertakings in the tyre corporation of india limited, calcutta on the 5th day of march, 19842 the tyre corporation of india limited, being a public sector enterprise under the administrative control of the ministry of heavy industries and public enterprises (department of heavy industry), has become a sick industrial company as defined in the sick industrial companies (special provisions) act, 1985 and a reference in respect of which has been made to the board for industrial and financial reconstruction (bifr) in may, 1992 the tyre corporation of india limited closed the unviable tangra unit in august, 2001 and sold the assets as per the directions of bifr the board for reconstruction of public sector enterprises has recommended for financial and capital restructuring of the tyre corporation of india limited and for looking for a strategic partner who would bring in new technology and further improve the profitability and market share of the company3 since the approval of parliament is necessary for changing the public character of the company as it was held by the supreme court in the centre for public interest litigation vs union of india (2003) 7 scc 532, the tyre corporation of india limited (disinvestment of ownership) bill, 2007 seeks to empower the central government to carry out disinvestment4 the bill seeks to achieve the above objectivesnew delhi;the 14th may, 2007———— a billto provide for disinvestment of government's equity in the tyre corporation of india limited and for matters connected therewith or incidental thereto————(shri sontosh mohan dev, minister of heavy industries and public enterprises)mgipmrnd—2357ls(s-5)—16-05-2007