 •• bill no 126 of inz thf, industrial development bank of india (amendment) bill, 1982 a billfurther to amend the industrial development bank of india act, 1964 be it enacted by parliament in the thirty-third year of the republic of india as follows:-i this act may be called the indus~rial development bank of india short (amendment) act, 1982 title  statement of objects and reasonsunder section 4 of the industrial development bank of india act, 1964, the authorised capital of the bank may be increa8e!d by the central government by notification up to two hundred crores of rupees a notification has accordingly been issued by the central government on the 12th may, 1980, increasing the authorised capital to two hundred crores of rupees and the same now stands fully subscribed further subscription to the capital of the development bank is, therefore, not possible unless section 4 of the act is suitably amended 2 the operations of the bank have been growing at the rate of 32 per cent per year since 1976-77 and are expected to grow by over 20 per cent in the next ~e years  at present, the debt-equity ratio of the dev:elopment bank is in the range of 12:1 in a situation where the development bank has to take recourse to further borrowings to augment its resources; the imbalance in its debt-equity ratio can be a serious' constraint in view of the normal financial principles combined with the rapidly expanding operations of the development (bank, it has become necessary to take steps to set right the imbalance in the deb~uity ratio by enhancing its share capital it is, therefore, proposed to amend the act t9 enable the central government by notification to increase the authorised capital of the bank from the present limi, of two hundred crores; of rupees to five hundred crores of rupees 3 the bill seeks to achieve the above object new delhi; pranab mukherjee the 24th september, 1982    ,  president's recommendation under article 117 of the constitution of tndia[copy of letter no 10(41) /if-i/82, dated the 5th october, 1982 from shri pranab kumar mukherjee, minister of finance to the secretary, lok sabha] the president having been informed of the subject matter of the pro-!losed bill, recommends under clauses (1) and (3) of article 117 of  the constitution, the introduction of the industrial development bank' of india (amendment) bill, 1982, in lok sabha and also recgmmentis to' lok sabha the consideration of the bill the above said recommendation was made by the president on the 29th september, 1982 ~  ,,:  ~ \   -~-" - "'i ", i' i - '~ ~ , ~ '  clause 2 of the bill seeks to empower the central government· to increase the limit of the authorised capital of' the industrial development bank of india from two hundred crores of rupeesjto five hundred crores  of rupees by notification from time to time at present, the authorised capital of the industrial development ~ank of india is rupees two, hundred crores the authorised; capital has been fully subscribed the proposed amendment woutd enable the central government to fix the authorised capital of the industrial development bank of india by notiflcationftom time to time 'taking into accouiltthe minimum requirements, within:the prescribed ~imit of five hundred crores of rupees the central govern· ment alone is empowered to subscribe to the share capital of the industrial development bank of india the central government will, therefore, be required to subscribe to the capital of the industrial development bank of india to the extent of the enhanced amount of authorised capital as may be fixed by notification from time to time after~the present limit of the authorised capital of two hundred crores of rupees is enhanced to rupees five hundred cror~s by the proposed amendment, an additional amount of rupees three hundred crores would be subscribed by the central government during the following years according to the present indications, the additional amount of rupees three hundred crores can be expected to be subscribed during the course of the next five years at an average rate of rupees sixty crores annually this would be a non· recurring expenditure from the consolidated fund of india the outgo of funds would be to some extent offset/by the profit transferred annually by the idbi to the government of india in 1981-82, the industrial development bank of india transferred an amount of rs 731 crares to the government of india 2 the bill would not involve any other recurring or non-recurring expenditure   annexure extract from the industrial development bam of india acr, 1964(18 of 1964)  - - - - authoris_ ed capital 4 the authorised capital of the de,velopment bank shall be one hundred crores of rupees: - provided that the central government may, by notification in the oftlc:ial gazette, increase the said capital up to two hundred crores of rupees -  -  - -  a billfurther to amend the industrial development bank of india act, 1964 (shri prcitacib kumgr mukherjee, ifmtlte7' of finonce) 