(1) In the interest of development of infrastructure project the Government may continue to give Performance Guarantee to all such sectors.
196 The West Bengal Ceiling on Government Guarantees Act, 2001.
XVII of 2001.]
(Section 6.)
(2) The Government shall lay before the Legislative Assembly of the State a comprehensive report on the liabilities (in rupees) that the State may incur in future, if the State fails to meet the contractual obligation stated in the Performance Guarantee.
(3) The report referred to in sub-section (2) shall be laid within six months of the date of giving Performance Guarantee:
Provided that if the Legislative Assembly of the State is not in session or is not sitting on the date on which the said period of six months expires, the said period of six months shall be deemed to expire on the first day on which the Legislative Assembly first sits after the aforesaid date.
Statement of Objects and Reasons on the West Bengal Ceiling on Government Guarantees Bill, 2001 (Bill No. 21 of 2001).
STATEMENT OF OBJECTS AND REASONS.
A Technical Committee of State Finance Secretaries was constituted by the Reserve Bank of India to examine the various aspects of Guarantees given by the State Governments. The said Technical Committee has recommended to fix limit on Government Guarantees. Hence, in order to implement the recommendations of the said Technical Committee, it is considered necessary to bring out legislation to provide for limits on Government Guarantees issued on behalf of the Government departments, public sector undertakings, local authorities, statutory boards, corporations and co-operative institutions for promoting fiscal discipline of the State.
2. The Bill has been framed with the above objects in view.
KOLKATA, ASIM KUMAR DASGUPTA, The 26th June, 2001. Member-in-charge.
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