Punjab Cabinet approves conversion of factories ordinance into bill for enactment

By Gitanjali Mangal -- October 18, 2020 5:10 pm -- Updated:Feb 15, 2021

To further improve the state’s investment climate and generate employment, the Punjab Cabinet on Sunday approved conversion of the Factories (Punjab Amendment) Ordinance, 2020 into a Bill to be tabled for enactment in the Vidhan Sabha tomorrow.

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The approval came during a meeting of the Council of Ministers, headed by Chief Minister Captain Amarinder Singh.

The Bill is aimed at amending Section 2m (i), 2m (ii), 65 (4), 85 and inserting a new section (106- B) in the Factories Act, 1948.

The Bill provides for changing the existing threshold limit for small units from 10 & 20 to 20 and 40 respectively. The change has been necessitated by the increase in manufacturing activity by small units in the State, and is aimed at promoting small manufacturing units. This would help create more employment opportunities for workers.

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Consequently, the existing section 85 of the Act would also stand amended, according to an official spokesperson.

Further, in view of the absence of any provision in the existing law for compounding of offences for violations found at the time of inspection of factories by the Inspector, the Bill will also incorporate Section 106B in the Act.

This will facilitate faster settlement of cases and reduction in court action.


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The Bill is aligned to the advice of Legal Remembrancer, said the spokesperson.

-PTC News