The Textile Undertakings (Nationalisation) Act, 1995
Administered Ministry: Ministry of Textiles
Act details
| Short title | The Textile Undertakings (Nationalisation) Act, 1995 |
|---|---|
| Long title | An Act to provide for the acquisition and transfer of the textile undertakings, and the right, title and interest of the owners in respect of the textile undertakings, specified in the First Schedule with a view to augmenting the production and distribution of different varieties of cloth and yarn so as to subserve the interests of the general public and for matters connected therewith or incidental thereto. |
| Act number | 39 of 1995 |
| Act year | 1995 |
| Enactment date | 8 Sep 1995 |
| Ministry | Ministry of Textiles |
| Jurisdiction | Central (Parliament of India) |
| Sections | 39 |
| Schedules | 2 |
| Status | Not repealed |
| Last checked on India Code | 29 Oct 2026 |
| Source | India Code, Government of India |
Summary
Summary of the Textile Undertakings (Nationalisation) Act, 1995
Key Provisions
• Acquisition of Textile Undertakings: The Act provides for the acquisition of the specified textile undertakings by the Central Government, free from encumbrances, on the appointed day.
• Transfer to the National Textile Corporation: The acquired undertakings are vested in the National Textile Corporation (NTC) or in a government company nominated by the Central Government for their management and operation.
• Management and Administration: The NTC is empowered to manage, operate, modernise, and develop the acquired undertakings to ensure their efficient functioning and revival.
• Compensation: The Act provides for the payment of compensation to the owners of the acquired undertakings in the manner specified under the Act.
• Protection of Employees: The services of employees of the acquired undertakings generally continue without interruption, subject to the terms and conditions specified in the Act.
• Pending Liabilities and Legal Proceedings: The Act contains provisions regarding the treatment of liabilities, contracts, legal proceedings, and obligations relating to the acquired undertakings.
• Rule-making Power: The Central Government is empowered to make rules for carrying out the provisions of the Act.
Legislative history
Legislative History:
The Textile Undertakings (Nationalisation) Act, 1995
Act Title The Textile Undertakings (Nationalisation) Act, 1995
Act Number 39 of 1995
Act ID (India Code) 199539
Presidential Assent Date September 8, 1995
Enforcement Date Sections 31 and 32 came into force at once; remaining provisions deemed effective from April 1, 1994
Nodal Ministry Ministry of Textiles
Precedent & Historical Rationale
1. Prolonged Management Takeover:
o Prior to 1995, the management of several financially distressed or sick textile undertakings across the country had been taken over by the Central Government under specific preceding laws, such as the Textile Undertakings (Taking Over of Management) Act, 1983, and the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976.
2. Augmenting Production and Protecting Public Interest:
o To secure the long-term viability of these sick mills, protect employment, and systematically augment the production and distribution of mass-varieties of cloth and yarn at fair prices, the government transitioned from temporary management takeover to outright nationalization. The Act transferred ownership, rights, and interests of specified textile undertakings directly to the Central Government, which subsequently vested them in the National Textile Corporation (NTC).
Parliamentary Trajectory & Enactment
• Formulation: Preceded by an Ordinance framework (The Textile Undertakings (Nationalisation) Ordinance, 1995), the Bill was drafted by the Ministry of Textiles to formalize the acquisition of specific sick textile mills listed in its schedules.
• Parliamentary Passage: Introduced and debated during the monsoon session of Parliament, securing passage in both the Lok Sabha and Rajya Sabha in September 1995.
• Presidential Assent: Received Presidential Assent on September 8, 1995.
• Enforcement: Enforced on April 1, 1994.
• Source: Official Records of Parliament, India Code, and Ministry of Textiles.