Rama Khadi Industries Ltd. is a fully owned subsidiary of Karishma Gramudyog Ltd. a State Government Company. The State Govt. took a policy decision to amalgamate the former with the latter. Illustrate briefly the steps

In respect of compromise, arrangement or amalgamation of Government companies, it is not the Tribunal but the Central Government that approves such schemes. Unlike Companies Act, 1956, wherein approval by Central Government was pursuant to Section 621A of the said Act. Notification of Section 233 of the Companies Act, 2013 specifies the procedure for amalgamation etc. of certain companies that include Government companies. Section 233 has been made effective since December 2016 and relevant Rule 25 of Companies (Compromise, Arrangements and Amalgamations) Rule, 2016. Government has not come out with any new policy as stated under Section 237, hence existing policy prevails.