The state-owned institutes such as the Film and Television Institute of India (FTII), the Satyajit Ray Film and Television Institute and the Delhi Public Library, are on the verge of being corporatised. While the Indian Institute of Mass Communication (IIMC) will be merging with either the Jawaharlal Nehru University or the Jamia Millia Islamia as part of the first phase of its review of 679 existing autonomous bodies.
Going by the definition, Corporatisation, a process of transforming state/government assets, is the act of reorganising the structure of government-owned entity into a legal entity with the corporate structure found in publicly trading companies. These companies tend to have a board of directors (B of D), management and shareholders.
As per reports, the review of these independent institutions, which are formed under the Societies Registration Act, began in January of this year. The first phase of the review has covered 114 autonomous bodies which come under seven ministries or departments. After the review, the government has decided to reduce 42, over a third of these, bodies or merge them with other entities or organise these bodies under a common organisation.
The review of these bodies has been spearheaded by the Prime Minister’s Office and the NITI Aayog. Ministries with a large number of independent bodies which get a high quantum of central assistance were picked by the Centre or phase-I of the exercise.
As per Indian Express reports, the corporatisation” of the three listed bodies could translate into them becoming independent companies or a special purpose vehicle (SPV) could possibly be formed shortly to take over their functioning, said the PMO office.
Rs 72,206 crores was allocated to these 679 autonomous bodies, which are spread across 68 ministries or departments, in the 2017-18 budget. many of these organisations have either an overlapping function or definitional problems, reported the Indian Express.
The NITI Aayog will begin phase-II of the programme later this month, which will look into societies registration act and cover the Societies Registration Act. Phase-III of the programme will look into bodies found outside the ambit of Societies Registration Act.
Here is a list of recommendations of the committee:
1. Indian Council of Social Science Research (ICSSR), Indian Council of Philosophical Research (ICPR) and Indian Council of Historical Research (ICHR) to be merged with JNU.
2. National Council for Promotion of Sindhi Language to be merged with Central Institute of Indian Languages.
3. National Council for Promotion of Urdu Language to be merged with either Maulana Azad National Urdu University or Jamia Millia Islamia.
4. Children’s Film Society of India to be merged with Film’s Division.