In section 5 of the principal Act, -
(1) in sub - section (3), for the words "such other conditions as it may think fit", the words "such other conditions (including such conditions as to improvements to existing machinery, replacement of existing machinery and use of improved methods of rice - milling as may be necessary to eliminate waste, obtain maximum production and improve quality) as it may think fit" shall be substituted ;
(2) for sub - section (5), the following sub - section shall be substituted, namely : -
"(5) (a) In granting a permit under this section (whether for the establishment of a new rice mill or for recommencing rice - milling operation in a defunct rice mill), the Central Government shall give preference -
(i) to a Government company or a corporation owned or controlled by the Government over every other applicant ;
(ii) to a farmers' co-operative society over every other applicant, not being a Government company or a corporation owned or controlled by the Government,
notwithstanding that such other applicant has applied for the grant of a permit for re - commencing rice - milling operation in a defunct rice mill.
(b) Subject to the provisions of clause (a), in granting a permit under this section, the Central Government shall give preference to a defunct rice mill over a new rice mill.
Explanation.- In this sub - section, -
(i) "Co-operative society" means a society registered or deemed to be registered under the Co-operative Societies Act, 1912 (2 of 1912) or any other law relating to co-operative societies for the time being in force in any State and "farmers' co-operative society" means a co-operative society the members whereof include farmers and the voting rights in which are, according to its rules and bye - laws, restricted to the following classes of its members, namely : -
(b) State Governments,
(c) primary agricultural credit societies as defined in clause (cii) of section 2 of the Reserve Bank of India Act, 1934 ;
(ii) "Government company" has the same meaning as in the Companies Act, 1956 .( 1 of 1956)"
(3) in sub - section (6), -
(i) for the words "shall be effective", the words "shall be valid" shall be substituted ;
(ii) the following proviso shall be added at the end, namely : -
"Provided that if in a mill in respect of which a permit has been granted under sub - section (3) rice - milling operation is not carried on for a continuous period of one year at any time after the commencement of the Rice - Milling Industry (Regulation) Amendment Act, 1968 , then, such permit shall cease to be valid upon the expiry of the said period of one year and a fresh permit shall be necessary for re - commencing rice - milling operation in that mill."
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