## Report on the Coconut Development Board Amendment Act, 2021
**1. Executive Summary:**
This report analyzes the Coconut Development Board Amendment Act, 2021, based on the provided Government of India Gazette. The amendment aims to improve the management and administration of the Coconut Development Board (CDB) by restructuring its leadership. Key changes include the separation of the Chairman and Chief Executive Officer (CEO) roles, making the Chairman a non-executive position and establishing a CEO as the primary executive authority. The report details these changes, their rationale as expressed in the text, affected stakeholders, and potential impacts on the coconut industry.
**2. Introduction:**
This report provides an informative overview of the Coconut Development Board Amendment Act, 2021, based solely on the text provided within the Government of India Gazette. The purpose is to inform stakeholders within the coconut industry about the changes introduced by this amendment and their potential implications.
**3. Policy Overview:**
* This is an *amendment* to the Coconut Development Board Act, 1979.
* Core Objective(s) *from the text*: To improve the management and administration of the Coconut Development Board and to benefit coconut growers. This is to be achieved by separating the roles of Chairman and CEO, enabling better governance and innovative business practices, and allowing the CDB to compete in the global market.
**4. Background and Rationale:**
The *provided text* suggests that the amendment is designed to address limitations in the original Act related to the Board's management and administrative structure. Specifically, the amendment responds to a perceived need for specialized roles within the CDB leadership. By creating a non-executive Chairman and a dedicated CEO, the amendment aims to streamline executive functions and allow the Chairman to leverage their experience in coconut cultivation, production, and marketing for better governance and to capitalize on emerging opportunities in the global market.
**5. Key Provisions / Changes:**
This section details the changes introduced by the Coconut Development Board Amendment Act, 2021.
* **Change 1: Chairman and CEO Roles Separated**
* *Original Policy*: The original Act had an executive Chairman.
* *New Rule/Provision*: The Chairman's role is now non-executive, appointed by the Central Government (Section 4, subsection 4, clause a). A Chief Executive Officer (CEO), not below the rank of Joint Secretary to the Government of India, is also appointed by the Central Government (Section 4, subsection 4, clause aa and Section 7, subsection 1). The CEO is responsible for exercising executive powers (Section 7, subsections 1A, 1B).
* *Effect of Change*: This change separates governance and executive functions, potentially leading to more efficient and specialized management of the CDB.
* **Change 2: Board Member Composition**
* *Original Policy*: The original Act had a different composition of board members.
* *New Rule/Provision*: Changes to Section 4, subsection 4 include an ex-officio Joint Secretary to the Government of India and an increase in the number of members representing various states and coconut growers. Specifically, the number of members representing states where coconut is grown on a large scale increases from three to four (representing Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu). The number of members to represent the states of Assam, Bihar, Chhattisgarh, Goa, Gujarat, Maharashtra, Nagaland, Odisha, Telengana, Tripura, West Bengal and the Union territories of Andaman and Nicobar Islands, Lakshadweep and Puducherry will be appointed by the Central Government by rotation. Furthermore, the number of members to represent coconut growers of the States of Kerala, Andhra Pradesh, Gujarat, Karnataka and Tamil Nadu will be increase to six members to be appointed by the Central Government.
* *Effect of Change*: This change aims to broaden the representation of states and coconut growers in the CDB, potentially leading to a more inclusive and representative decision-making process.
* **Change 3: International Expansion**
* *Original Policy*: The original Act's activities were restricted to India.
* *New Rule/Provision*: Section 10 of the principal Act is amended to allow activities both "within or outside India".
* *Effect of Change*: This change enables the CDB to promote and market coconut products internationally, aligning with India's membership in the International Coconut Community.
* **Change 4: Allowances**
* *Original Policy*: Section 5 of the original act is replaced by a new section which states the Chairman and members of the Board shall receive such allowances as may be fixed by the Central Government.
* *Effect of Change*: The nonexecutive Chairman shall not be entitled to any salary, but to only allowances. Also, there is an addition of only two representatives of Coconut Growers from the States of Gujarat and Andhra Pradesh as nonofficial members who shall not be entitled to any salary, but to only allowances.
**6. Target Audience and Stakeholders:**
Based on the *provided text*, the primary target audience and stakeholders are:
* Coconut growers, particularly those in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Gujarat.
* The Coconut Development Board and its employees.
* The Ministry of Agriculture and Farmers Welfare (Central Government).
* Consumers of coconut products.
* States involved in coconut production and their respective governments.
**7. Implementation Aspects (Inferred):**
* *Responsible agency/bodies*: The Central Government, specifically the Ministry of Agriculture and Farmers Welfare, is responsible for appointing the Chairman and CEO, fixing allowances, and making rules for the CEO's powers, duties, salary, and service conditions.
* *Timelines or procedures*: The amendment will come into force on a date appointed by the Central Government via notification in the Official Gazette (Section 1, clause 2).
* The Central Government is empowered to make rules for the powers, duties, salary, and service conditions of the CEO.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these specific changes introduced by the amendment text are:
* Improved efficiency and effectiveness in the management and administration of the CDB.
* Enhanced representation of coconut growers and producing states in the Board's decision-making processes.
* Greater opportunities for the Indian coconut industry to compete in the global market.
* Modernization of the Coconut Development Board's operations to align with current business practices.
**9. Conclusion:**
The Coconut Development Board Amendment Act, 2021, represents a significant restructuring of the CDB's leadership and operational scope. By separating the roles of Chairman and CEO, broadening board representation, and enabling international activities, the amendment aims to modernize the CDB and improve its ability to support the coconut industry and benefit coconut growers. The changes are likely to have a positive impact on the industry by fostering more efficient management, inclusive decision-making, and greater opportunities for global competitiveness.
Key Entities Referenced
Coconut Development Board Act, 1979: The primary legislation being amended by this bill, concerning the development of the coconut industry.
Coconut Development Board Amendment Act, 2021: The short title of the amending act.
Rajya Sabha: The Council of States, where the bill was introduced.
Parliament: The legislative body enacting the law.
Central Government: The Union Government of India, responsible for appointments and fixing allowances related to the Coconut Development Board.
Official Gazette: The official publication where the commencement date of the Act will be notified.
Chairman: The position being changed from executive to non-executive within the Coconut Development Board.
Chief Executive Officer: A new executive position being created within the Coconut Development Board to exercise executive powers.
Joint Secretary to the Government of India: Rank of the officer to be appointed as Chief Executive Officer.
Mission for Integrated Development of Horticulture: A program under the Government of India, with the Joint Secretary in-charge serving as an ex-officio member of the Board.
Andhra Pradesh: A state in India where coconut is grown on a large scale.
Karnataka: A state in India where coconut is grown on a large scale.
Kerala: A state in India where coconut is grown on a large scale.
Tamil Nadu: A state in India where coconut is grown on a large scale.
Assam: A state in India represented on the Coconut Development Board.
Bihar: A state in India represented on the Coconut Development Board.
Chhattisgarh: A state in India represented on the Coconut Development Board.
Goa: A state in India represented on the Coconut Development Board.
Gujarat: A state in India represented on the Coconut Development Board.
Maharashtra: A state in India represented on the Coconut Development Board.
Nagaland: A state in India represented on the Coconut Development Board.
Odisha: A state in India represented on the Coconut Development Board.
Telengana: A state in India represented on the Coconut Development Board.
Tripura: A state in India represented on the Coconut Development Board.
West Bengal: A state in India represented on the Coconut Development Board.
Andaman and Nicobar Islands: A union territory of India represented on the Coconut Development Board.
Lakshadweep: A union territory of India represented on the Coconut Development Board.
Puducherry: A union territory of India represented on the Coconut Development Board.
India: The country which is a member of International Coconut Community.
International Coconut Community: An international organization of which India is a member, relevant to coconut production and marketing.
Narendra Singh Tomar: Individual presenting the bill (likely the minister).
Desh Deepak Verma: Secretary-General, Rajya Sabha.
Minto Road, New Delhi: Location of the Government of India Press.
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RAJYA SABHA
————
The following Bill has been introduced in the Rajya Sabha on the 29th July, 2021:—
BILL NO. XXVI OF 2021
A Bill further to amend the Coconut Development Board Act, 1979.
BE it enacted by Parliament in the Seventy-second Year of the Republic of India as
follows:—
1.(1) This Act may be called the Coconut Development Board (Amendment) Short title and
Act, 2021. commencement.
(2) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint.
5 of 1979. 2. In section 3 of the Coconut Development Board Act, 1979 (hereinafter referred Amendment of
to as the principal Act), for clause (b), the following clauses shall be substituted, section 3.
namely:—
‘(b) “Chairman” means the non-executive Chairman of the Board appointed
under clause (a) of sub-section (4) of section 4;
(ba) “Chief Executive Officer” means the Chief Executive Officer of the Board
appointed under sub-section (1) of section 7;’.2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
Amendment of 3. In section 4 of the principal Act, in sub-section (4),—
section 4.
(A) for clause (a), the following clauses shall be substituted, namely:—
“(a) a non-executive Chairman, to be appointed by the Central Government;
(aa) the Chief Executive Officer, to be appointed by the Central
Government;
(ab) the Joint Secretary to the Government of India, in-charge of Mission
for Integrated Development of Horticulture, ex officio;”;
(B) in clause (f), for sub-clause (ii), the following sub-clause shall be
substituted, namely:—
“(ii) Consumer Affairs;”;
(C) for clauses (g), (h) and (i), the following clauses shall be substituted,
namely:—
“(g) four members to be appointed by the Central Government one
each to represent the Governments of the States of Andhra Pradesh,
Karnataka, Kerala and Tamil Nadu, being States where coconut is grown
on a large scale;
(h) four members to be appointed by the Central Government by
rotation in the alphabetical order to represent the States of Assam,
Bihar, Chhattisgarh, Goa, Gujarat, Maharashtra, Nagaland, Odisha,
Telengana, Tripura, West Bengal and the Union territories of Andaman
and Nicobar Islands, Lakshadweep and Puducherry;
(i) six members to be appointed by the Central Government, two to
represent the coconut growers of the State of Kerala and one each to
represent the coconut growers of the States of Andhra Pradesh,
Gujarat, Karnataka and Tamil Nadu;”.
Substitution of 4. For section 5 of the principal Act, the following section shall be substituted,
new section namely:—
for section 5.
Allowances “5. The Chairman and members of the Board shall receive such allowances as
payable to may be fixed by the Central Government.”.
Chairman and
members.
Amendment 5. In section 7 of the principal Act,—
of section 7.
(a) for sub-section (1), the following sub-sections shall be substituted,
namely:—
“(1) There shall be a Chief Executive Officer of the Board, not below the
rank of Joint Secretary to the Government of India, to be appointed by the
Central Government.
(1A) The Chief Executive Officer shall exercise such powers and perform
such duties as may be prescribed.
(1B) The salaries and allowances payable to, and other conditions of
service of, the Chief Executive Officer shall be such as may be prescribed.”;
(b) in sub-section (2), for the word “Chairman”, the words “Chief Executive
Officer” shall be substituted;
(c) in sub-section (4), after the words “the Chairman”, the words “or the
Chief Executive Officer” shall be inserted;SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 3
(d) in sub-section (5), for the words “The Chief Coconut Development
Officer”, the words “The Chief Executive Officer, the Chief Coconut Development
Officer” shall be substituted;
(e) in sub-section (7), for the words “the Chairman”, the words “the Chief
Executive Officer” shall be substituted.
6. In section 10 of the principal Act, in sub-section (2),— Amendment of
section 10.
(A) in clause (b), for the words “in India”, the words “within or outside
India” shall be substituted;
(B) in clause (i), the words “on a large scale” shall be omitted.
7. In section 19 of the principal Act, in sub-section (2), for clause (d), the following Amendment of
clauses shall be substituted, namely:— section 19.
“(d) the powers to be exercised and the duties to be performed by the Chief
Executive Officer under sub-section (1A) of section 7;
(da) the salaries and allowances payable to, and other conditions of service of,
the Chief Executive Officer under sub-section (1B) of section 7;”.4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
STATEMENT OF OBJECTS AND REASONS
The Coconut Development Board Act, 1979 was enacted to provide for the development
of the coconut industry under the control of the Union and for matters connected therewith.
The Coconut Development Board was established on 28th January, 1981 under the said Act.
At present, the Board has an executive Chairman who is a Joint Secretary level officer in the
Government of India, appointed by that Government on deputation basis from amongst
officers of All India Services or officers in the Central Government or State Government or
Union territory Administration or recognised research institutes or Agricultural Universities
or public sector units.
2. For better management and administration of the Board and for the welfare of
coconut growers at large, it is proposed to make the post of Chairman a non-executive one.
It is also proposed to have a post of Chief Executive Officer of the Board to exercise all the
executive powers hitherto exercised by the Chairman of the Board. Thus, the work load shall be
shared between the non-executive Chairman and the Chief Executive Officer of the Board
resulting in better and effective management and administration of Coconut Development
Board.
3. The appointment of a non-executive Chairman would help in using his vast experience
in the area of coconut cultivation, production, marketing, etc., for better governance and to take
advantage of the new and emerging opportunities to keep pace with other economic entities.
It may also facilitate the management of the Coconut Development Board to do business more
innovatively and use resources in the most competitive and efficient manner and protect
the interests of coconut growers.
4. Under section 10 of the Coconut Development Board Act, 1979, the production and
marketing of coconut and its products and related activities are restricted to India only. It is
necessary to expand such activities beyond India and to compete in the global market as
India is already a member of International Coconut Community.
5. The Coconut Development Board (Amendment) Bill, 2021, inter alia, seeks to—
(i) make the post of Chairman a non-executive one so as to enable better
management and administration of the Board and for the welfare of coconut growers;
(ii) rename the present executive post of the Chairman as the Chief Executive
Officer, who shall exercise all the executive powers of the Board;
(iii) provide for other consequential matters relating thereto.
6. The Bill seeks to achieve the above objects.
NARENDRA SINGH TOMAR.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 5
FINANCIAL MEMORANDUM
Clause 3 of the Bill seeks to amend section 4 of the Coconut Development Board Act,
1979. Sub-clause (A) of said clause seeks to substitute clause (a) of sub-section (4) of said
section with new clauses (a), (aa) and (ab) which respectively provide for the appointment
of a non-executive Chairman, a Chief Executive Officer and an ex officio Joint Secretary to
the Government of India, in-charge of Mission for Integrated Development of Horticulture,
as members of the Board. Sub-clause (C) of said clause seeks to substitute clauses (g), (h)
and (i) of said sub-section, respectively providing for the appointment of four members
instead of existing three members, four members instead of existing five members and six
members instead of existing four members.
2. Clause 4 of the Bill seeks to substitute a new section for section 5 of said Act.
Section 5 as so substituted provides that the non-executive Chairman and Members of the
Board shall receive such allowances as may be fixed by the Central Government.
3. Clause 5 of the Bill seeks to amend section 7 of the said Act. Sub-section (1B) of
said clause provides for the salaries and allowances payable to, and other conditions of
service of, the Chief Executive Officer.
4. However, the salary and allowances which are being paid to the existing Executive
Chairman shall henceforth be paid to Chief Executive Officer. Further, the non-executive
Chairman shall not be entitled to any salary, but to only allowances. Also, there is an
addition of only two representatives of Coconut Growers from the States of Gujarat and
Andhra Pradesh as non-official members who shall not be entitled to any salary, but to only
allowances. The allowances so payable shall be for participation in the Board meetings,
committee meetings, farm visits and other official meetings and such allowances shall be as
fixed by Central Government in the rules made in this behalf.
5. This will involve expenditure of recurring nature, which would be a part of the
administrative expenditure of the Ministry. The exact expenditure which will be involved
under the proposed Bill will depend upon the number of meetings or visits to be attended
by the members of the Board. Hence, it is not practicable to make an exact estimate of the
recurring expenditure for the purpose at this stage.6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— SEC. 2]
MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 7 of the Bill seeks to amend section 19 of the Coconut Development Board
Act, 1979 to empower the Central Government to make rules for (i) the powers to be exercised
and the duties to be performed by the Chief Executive Officer and (ii) the salaries and
allowances payable to, and other conditions of service of, the Chief Executive Officer.
The matters in respect of which rules may be made are matters of procedure and
administrative detail and it is not practicable to provide for them in the Bill itself. The
delegation of legislative power is, therefore, of a normal character.
__________
DESH DEEPAK VERMA,
Secretary-General.
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CONDUCT OF BUSINESS IN THE RAJYA SABHA AND UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS,
MINTO ROAD, NEW DELHI–110002
MGIPMRND—506GI—29-07-2021.