XII

CHAPTER XII
REVIEW OF THE BUDGET—IV

Committee on Public Undertakings

110. The Committee on Public Undertakings, which is yet another of the Legislature Committees, was first constituted in November, 1968, to examine the working of Public Undertakings. Like the Committee on Public Accounts, it has now eleven members, including the Chairman. The functions of the Committee on Public Undertakings and the provisions relating to the constitution, as laid down in Rules 236 and 237 of the “Rules of Procedure and Conduct of Business in the Kerala Legislative Assembly”, and the Rules of Procedure of the Committee, framed under Rule 206 ibid, are reproduced in the following sub-paragraphs. The instructions contained in Appendix 15 to the Manual will apply mutatis mutandis to matters concerning the Committee on Public Undertakings as well.

236. FUNCTIONS OF THE COMMITTEE ON PUBLIC UNDERTAKINGS

There shall be a Committee on Public Undertakings for the examination of the working of the Public Undertakings specified in the Fourth Schedule* and such other Public Undertakings as may be notified by the Government as such from time to time.

The functions of the Committee shall be—

  (a) to exercise the reports and accounts of the Public Undertakings specified in the Fourth Schedule; and with the permission of the Speaker to examine such other Public Undertakings as may be notified by the Government as such from time to time;

  (b) to examine the reports, if any, of the Audit on Public Undertakings;

  (c) to examine in the context of the efficiency of the Public Undertakings whether the affairs of the Public Under¬

takings are being managed in accordance with sound business principles and prudent commercial practices; and

(d) to exercise such other functions vested in the Committee on Public Accounts and the Committee on Estimates in relation to the Public Undertakings specified in the fourth schedule as are not covered by sub-clauses (a), (b) and (c) above and as may be allotted to the Committee by the Speaker from time to time:

Provided that the Committee shall not examine and investigate any of the following, namely—

  (i) matters of major Government policy as distinct from business or commercial functions of the Public Undertakings;

  (ii) matters of day-to-day administration;

(iii) matters for the consideration of which machinery is established by any special under which a particular Public Undertakings is established.

(iv)

Note:—“Public Undertakings” for the purpose of Rules 236 and 237 means any Company in which not less than 51 per cent of the paid up share capital is held by the State Government and includes Statutory Corporations and Boards constituted by the State Government.

237. CONSTITUTION OF THE COMMITTEE

The Committee shall consist of eleven members who shall be elected by the Assembly as soon as may be after the commencement of the financial year for a period of two years from amongst its members according to the principle of proportional representation by means of single transferable vote:

Provided that a Minister shall not be elected as a Member of the Committee, and that if a Member, after his selection to the Committee is appointed as a Minister he shall cease to be a member of the Committee from the date of such appointment.

RULES OF PROCEDURE OF THE COMMITTEE 
ON PUBLIC UNDER¬TAKINGS 
(INTERNAL WORKING)

(Made under Rule 206 of the Rules of Procedure and Conduct of Business in the Kerala Legislative Assembly)

The following rules are supplemental to the provisions contained in Rules 179 to 210 and Rules 236 and 237 of the Rules of Procedure and Conduct of Business in the Kerala Legislative Assembly.

1. (1) Selection of Subjects for Examination.—The Committee shall select from time to time for examination such Public Undertakings or such subjects as they may deem fit and as fall within their terms of reference.

(2) The programme of work for the examination of subjects may be determined by the Committee from time to time.

2. If the Committee is divided into Sub-Committees, the procedure of each Sub-Committee shall be the same as that of the whole Committee.

3. Notice of sitting.—When the date and time of a sitting of the Committee have been fixed by the Chairman, notice thereof shall be circulated to the Members of the Committee.

4. Material to be furnished to the Committee.—The Department/Undertaking concerned with the subjects to be examined by the Committee shall be asked in writing by the Legislature Secretariat to furnish twenty-five sets of the necessary materials for the use of the Members of the Committee. The preliminary material to be furnished to the Committee in respect of an Undertaking shall generally be on the lines set out in Annexure 1.*

4A. When the Committee take up consideration of the Report of the Comptroller and Auditor General of India relating to the Government of Kerala, so far as they relate to the Public Undertakings mentioned in the Fourth Schedule to the Rules of Procedure and Conduct of Business in the Kerala Legislative Assembly, usually thirty copies of each of the notes, memoranda, etc., shall be furnished by the Departments of the Government either in pursuance of action taken on the recommendation of the Committee or in reference to the point or points on which the information may be called for by the Committee or a Member thereof. On receipt, copies shall be circulated to members and three copies of each paper memorandum, document, etc., shall be forwarded to the Accountant General.

4B. The notes and other details furnished by the Departments as a result of the examination of the departmental witnesses in connection with the consideration of the Report of the Comptroller and Auditor General of India relating to the Government of Kerala so far as relate to the Public Undertakings mentioned in the Fourth Schedule to the Rules of Procedure and Conduct of Business in the Kerala Legislative Assembly may be submitted to the Committee after verification by the Audit Department.

5. Circulation of Material to Members.—The material shall be circulated to the Members with a covering memorandum as soon as possible after its receipt in the Secretariat.

6. Papers circulated to the Committee to be treated as Confidential.—The papers circulated to the Committee shall be treated as confidential and the contents thereof shall not be divulved to any one nor shall any reference be made to such information outside the Committee at any time before the report on the subject has been presented to the House. Thereafter, reference may be made only to such information as is available in the documents or records laid on the Table.

7. Questions by Members.—(1) The members may, after going through the papers, frame questions or points on which further information is required by them.

(2) These questions or points shall be sent by members to the Legislature Secretariat by a date to be specified by the Chairman.

8. Questionnaire for the Department/Undertaking.—(1) The questions and points suggested by Members, together with other relevant points concerning the subject under examination, shall be consolidated in the form of a questionnaire. The questionnaire shall be circulated to all Members of the Committee with explanatory notes wherever necessary.

  (2) The questionnaire and the suggestions received from the Members shall be considered by the Committee. After its approval by the Chairman it shall be sent to the Undertaking/Department which shall furnish to the Secretariat twenty-five sets of replies thereto by a date to be specified by the Chairman.

  (3) Copies of the questionnaire shall be circulated to the Members of the Committee.

  (4) The replies received to the questionnaire from the Undertaking/Department shall be circulated to the Members in the manner prescribed in Rule 5 of these rules.

  (5) Where further clarification is required on any point or additional information is desired, it may be called for in the manner prescribed in sub-rule (2) of this rule.

9. Points for oral examination.—(1) The Legislature Secretariat shall prepare a list of points and/or questions for oral examination of the witnesses incorporating therein any suggestions that may be received from Members in this regard, for approval by the Chairman.

(2) Advance copies of the list of points or questions may be circulated to the Members of the Committee.

10. Procedure when taking and evidence.—The Chairman shall put questions one by one to the witness. If a member desires to put a question he shall do so with the permission of the Chairman. In case the witness is not in a position to elucidate any point immediately, he may be permitted by the Chairman to furnish a reply to the Secretariat in writing as soon as may be thereafter.

11. Recall of witnesses.—The Committee may recall any witnesses to give further evidence on any point which is under consideration of the Committee.

12. Examination of witnesses.—The Committee may whenever necessary take the oral evidence of the representatives of the Undertakings under examination, separately from those of the Department concerned.

13. Points on which further information is required.—The Secretariat shall note down the points on which further information is required by the Committee and under directions of the Chairman take such action in the matter as may be necessary.

14. Production of Documents.—(1) The Committee may send for persons, papers and records required in connection with the examination of the Undertaking/Department. In the case of secret documents required by the Committee such papers may be made available by the Undertakings/Department confidentially to the Chairman in the first instance unless it is certified by Minister concerned that the document could not be made available on the ground that its disclosure would be prejudicial to the safety or interest of the State.

(2) The Chairman may give due consideration to the wishes of the Undertaking/Department before making any secret documents available to the Members of the Committee. Any difference of opinion between the Undertaking/Department and Chairman may be settled by discussion and if no satisfactory arrangement is arrived at the matter shall then be placed before the Speaker for his decision.

15. Verbatim proceedings.—The verbatim proceedings shall be for the use of the Committee only and only such papers as have been laid on the Table of the House will be made public.

16. Minutes of sittings.—The Secretariat shall draft minutes of the sittings of the Committee for approval of Chairman or the Member who presided at the sittings as the case may be.

17.Circulation of Minutes.—The minutes of each sitting of the Committee shall be circulated to the Members of the Committee.

18. Presentation of draft report.—(1) When the examination of any subject has been completed the Committee shall frame their conclusions and recommendations.

  (2) On the basis of the conclusions and recommendations draft of the report shall be prepared.

  (3) The draft report as prepared under (2) above shall be circulated to the Members of the Committee after it has been approved by the Chairman and then considered at a sitting of the

Committee. The report of the Committee shall embody the decision of the majority of the members present and voting.

  (4) In the case of equality of votes the Chairman shall decide the issue by a casting vote.

  (5) There shall be no minute of dissent to the Reports of the Committee.

19. Presence of persons other than Members of the Committee of Officers of the Secretariat.—When the Committee is considering the draft reports or formulating its views on any matter, no one who is not a member or an officer of the Secretariat of the Committee shall be present at such meeting.

20. Supply of advance copies of report to department for factual verification.—Advance copies of the report as finalised by the Committee shall be marked ‘Secret’ and sent to the concerned Department and also to the Finance Department for verification of factual details. It shall be enjoined on them to treat the contents of the reports as secret until the report is presented to the House.

21. On receipt of the comments of the Department the Chairman may make suitable modifications in the report to correct factual inaccuracies, if any, or may direct that the matter be placed before the Committee for consideration.

22. The report shall ordinarily be presented to the House by the Chairman, but if he is unable to so, one of the members of the Committee who may be authorised by him may present the report on his behalf.

23. Signing of the report of the Committee.—The Chairman will sign the report on behalf of the Committee.

24. Distribution of reports.—As soon as possible after presentation of the report to the House, copies thereof shall be made available to the Members of the Legislature and other persons, authorities, etc., concerned.

25. Publicity to activities of the Committee.—The Secretariat shall, under the direction of the Chairman, arrange to give suitable publicity through the bulletin and the Press to then sittings of the Committee for the information of the public.

26. Incorporation of points of procedure is the Rule.—Any addition or alteration to these rules from time to time shall be incorporated in the rules after due approval.

🆀 The Public Undertakings Committee of the Legislature have.......members 

(A) 7

(B) 11 

(C) 9 

(D) 5 

Correct Answer:-Option:(B) 

🆀 Public Undertakings Committee of the Legislature shall not examine and investigate : 

(A) Audit Reports of Public Undertakings 

(B) Matter of day to day administration 

(C) Efficiency of the Public Undertakings 

(D) Matters alloted by Speaker 

Correct Answer:-Option:(B) 

🆀 The reports of the Committees on Estimates and Public Undertakings will be signed by ? 

(A) Governor

(B) Secretary 

(C) Chairman

(D) Additional Secretary 

Correct Answer:-Option:(C)

ANNEXURE I
(vide Rule 4)

POINTS TO BE COVERED IN THE
 PRELIMINARY MATERIALS TOBE FURNISHED
 BY A DEPARTMENT/UNDERTAKING

(i) Historical background together with copies of Statues/Memorandum and Articles of Association of the Corporation/Company, Rules, Regulations’ issued thereunder, if any.

(ii) Note giving briefly the objects and present functions of the Corporation/Company together with copy of the Instrument of Instructions issued by Government, if any.

(iii) (a)Organisational set-up of the Corporation/Company, including that of its various projects/offices. This information may be shown in the form of a chart supported by short explanatory notes.

  (b) Organisational set-up in the administrative department which co-ordinates/controls the work of the Corporation/Company.

(iv) A detailed account of the working (the financial as well as physical terms) of the Corporation/Company year-wise, since its inception with reference to programme or plan. Reasons for variation between the programme and the achievement, if any, may be furnished.

(v) The original estimates, revised estimates and actual expenditure on the various projects for the last three years together with a brief note indicating the reasons for variations, if any.

(vi) Current programme and future plans of the Corporation/Company.

(vii) (a) Copies of the Actual Reports and Accounts for the last three years, together with administrative Reports and reviews of Government, if any.

(b) Copies of monthly/quarterly reports submitted by the Chairman and the Financial Controller to Government during the last one year.

(viii) Copies of report of any inquiry of investigation conducted into the working of the Corporation/Company.

(ix) Notes giving main features of the Project Reports, if any ,relating to each Project undertaken by the Corporation/Company, i.e., their estimated cost scheduled dates of commissioning of the various units in each project, annual rated capacity (both in terms of quantity and value) and the year of reaching that capacity, staff required (category-wise), etc., together with the latest position with reference to each aspect.

(x) Copies of agreement, if any, entered into with Consultants/Collaborators.

(xi) Copies of directives, if any, issued by Government.

(xii) A brief note indicating the position of similar undertakings in other States.

(xiii) Any information which the Department/Undertaking would like to place the Committee.