Login

Act 001 of 2012 : Damodar Valley Corporation (Amendment) Act, 2011

Preamble

Damodar Valley Corporation (Amendment) Act, 20111

[Act 1 of 2012, Repealed by Act 23 of 2016*][8th January, 2012]

An Act further to amend the Damodar Valley Corporation Act, 1948

Be it enacted by Parliament in the Sixty-second Year of the Republic of India as follows-

1 Received the assent of the President on January 8, 2012 and published in the Gazette of India, Extra., Part II, Section 1, dated 9th January, 2012, pp. 1–2, No. 1

* Ed.: Act 1 of 2012 repealed by Act 23 of 2016, S. 2 & Sch. I. See also S. 4 of the Repealing and Amending Act, 2016:

"4. Savings.- The repeal by this Act of any enactment shall not affect any other enactment in which the repealed enactment has been applied, incorporated or referred to;

and this Act shall not affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing;

nor shall this Act affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from any enactment hereby repealed;

nor shall the repeal by this Act of any enactment revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force."

SOR Statement of Objects and Reasons

Prefatory Note-Statement of Objects and Reasons.-The Damodar Valley Corporation Act, 1948 has been enacted to provide for the establishment and regulation of a Corporation for the development of the Damodar Valley in the States of Bihar (now Jharkhand) and West Bengal. The functions of the Corporation under the Act, inter alia, provided for the promotion and operation of schemes for irrigation, water supply and drainage, the generation, transmission and distribution of electrical energy, the promotion and control of navigation in the Damodar River and its tributaries and channels, afforestation and control of soil erosion, promotion of public health and the agricultural, industrial, economic and general well-being in the Damodar Valley and its area of operation.

2. Under the Damodar Valley Corporation Act, 1948, the Corporation consists of a Chairman and two members, appointed by the Central Government after consultation with the concerned State Governments.

3. Over the last more than sixty years, the role and expectations from Damodar Valley Corporation have changed significantly due to industrial development in the valley area. The demand for power by industry, especially coal, steel, railways and other consumers has gone up considerably. Damodar Valley Corporation has built power plants and stepped up its generation capacity over the years. Thus, the Damodar Valley Corporation has grown into a large generating company with its own transmission and sub-transmission network. The Administrative Staff College of India recommended restructuring of the Corporation to make it more broad based and professional so that it may discharge its responsibilities more effectively and efficiently.

4. Based on the inter-ministerial consultations, a Bill namely "the Damodar Valley Corporation (Amendment) Bill, 2007" was introduced in the Lok Sabha on 4th May, 2007, and the same was referred to the Standing Committee on Energy which gave its report on the 7th September, 2007. The said Bill, inter alia, provided that the Damodar Valley Corporation would consist of (i) a whole-time Chairman; (ii) a whole-time Member Technical; (iii) a whole-time Member Finance; (iv) one representative from the Central Government, as part-time Member; (v) two representatives one each from the State Governments of Jharkhand and West Bengal, as part-time Members; (vi) three independent experts one each from the field of irrigation, water supply and generation or transmission of electricity as part-time Members. The Committee supported the amendments proposed in the aforesaid Bill and also recommended that the Secretary of the organisation should be made a full-time Member of the Board to enhance the functioning capabilities of the organisation as has been recommended by the Administrative Staff College of India. However, the Damodar Valley Corporation (Amendment) Bill, 2007 lapsed with the dissolution of the Lok Sabha.

5. It is now proposed to introduce the Damodar Valley Corporation (Amendment) Bill, 2011 to-

(a) change the composition of the Damodar Valley Corporation on the lines of the earlier lapsed Damodar Valley Corporation (Amendment) Bill, 2007 with the addition that there shall be a whole-time Member-Secretary;

(b) provide that the Chairman shall be the Chief Executive Officer of the Corporation;

(c) provide that the Member-Secretary shall be in-charge of the general administration and business development of the Corporation;

(d) abolish the posts of secretary and financial advisor.

6. The Bill seeks to achieve the above objectives.

Section 1. Short title and commencement

1. Short title and commencement.-(1) This Act may be called the Damodar Valley Corporation (Amendment) Act, 2011.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Section 2. Amendment of Section 4

2. Amendment of Section 4.-In Section 4 of the Damodar Valley Corporation Act, 1948 (14 of 1948) (hereinafter referred to as the principal Act), for sub-section (1), the following sub-sections shall be substituted, namely-

"(1) The Corporation shall consist of-

(a) a Chairman;

(b) a member (technical) and a member (finance);

(c) one representative from the Central Government;

(d) two representatives one each from the State Governments of Jharkhand and West Bengal;

(e) three independent experts one each from the field of irrigation, water supply and generation or transmission or distribution of electricity; and

(f) a Member-Secretary.

(1-A) The Chairman and members under clauses (a), (b), (d) and (f) of sub-section (1) shall be appointed by the Central Government in consultation with the State Governments concerned while the members under clauses (c) and (e) shall be appointed by the Central Government by notification in the Official Gazette.

(1-B) The Chairman and members under clauses (a), (b) and (f) of sub-section (1) shall be whole-time while the members under clauses (c), (d) and (e) shall be part-time.

(1-C) The Chairman shall be the Chief Executive Officer of the Corporation.

(1-D) Without prejudice to the provisions contained in sub-section (1-C), the Member-Secretary shall be in charge of general administration and business development of the Corporation.".

Section 3. Amendment of Section 6

3. Amendment of Section 6.-In Section 6 of the principal Act, sub-sections (1) and (2) shall be omitted.

Section 4. Amendment of Section 7

4. Amendment of Section 7.-In Section 7 of the principal Act, clause (a) shall be omitted.

Section 5. Substitution of new section for Section 8

5. Substitution of new section for Section 8.-For Section 8 of the principal Act, the following section shall be substituted, namely-

"8. Functions and duties of members.-The functions and duties of the members shall be such as may be prescribed.".

Section 6. Amendment of Section 44

6. Amendment of Section 44.-In Section 44 of the principal Act, in sub-section (1), for the words "financial adviser", the words and brackets "member (finance)" shall be substituted.

Section 7. Amendment of Section 59

7. Amendment of Section 59.-In Section 59 of the principal Act-

(a) in sub-section (1), the words "the secretary and the financial adviser" shall be omitted;

(b) in sub-section (2), for the words "financial adviser", the word "members" shall be substituted.