Now, Rs 200-cr training institute for babus

NEW DELHI: Now, there will be an institute to train babus on company laws and accountancy. The ministry of company affairs has proposed to set up an institute in the NCR region for training government officials. The proposed Indian Institute of Corporate Affairs will be set up in the Eleventh Five Year Plan at a cost of Rs 200 crore.

“The ministry has received an in-principle approval for setting up such an institute from the Planning Commission,” an official said. The institute will be dedicated towards training officials in matters concerning company affairs, such as corporate governance and corporate laws. “The institute will be located in the National Capital Region (NCR).

The ministry is still working out the details, which would be finalised in a few months,” he said. Once in place, the institutional arrangement would not only provide for training at the induction stage, but also cater to upgradation of skills through continuous in-service training.

“Due to the changing corporate culture, and the introduction of new programmes in the ministry, a need was felt for competent and efficient manpower,” he said. The ministry will also shift a part of its functions to the institute. The detailed proposal, once ready, will be sent to the Department of Expenditure for approval. The ministry has asked the government for Rs 200 crore to be spent towards setting up of the institute over the 2007-2012 five-year plan.

The ministry of company affairs has started a number of programmes requiring a cadre of trained officials. Trained officials are a must for the ministry’s national e-governance programme called MCA21 as well as its investor protection programme called Investor Education and Protection Fund (IEPF).

MCA21 project envisages electronic filing of documents in compliance with the statutory provisions of the Companies Act. The ministry is also finalising the proposals for a new Companies Bill that would replace the Companies Act of 1956. With all the changes, the ministry has said that training of manpower is imperative.