Damodar Valley Corporation Act, 1948

This Indian Act provides for the establishment and regulation of a Corporation for development of the Damodar Valley in Bihar and West Bengal.

Damodar Valley Corporation Act, 1948

[Act 14 of 1948]         [27th March, 1948]

An Act to provide for the establishment and regulation of a Corporation for the development of the Damodar Valley in the Provinces of Bihar and West Bengal

Whereas it is expedient to provide for the establishment and regulation of a Corporation for the development of the Damodar Valley in the Provinces of Bihar and West Bengal:

And whereas in pursuance of Section 103 of the Government of India Act, 1935 (26 Geo, 5, c. 2), resolutions have been passed by all the Chambers of the Provincial Legislatures of the said Provinces to the effect that certain matters dealt with in this Act which are enumerated in the Provincial Legislative List should be regulated in those Provinces by Act of the Dominion Legislature;

It is hereby enacted as follows:—

STATEMENT OF OBJECTS AND REASONS

The Damodar river rises in western Bihar and flows generally in a south-easterly direction into Bengal. It is a seasonal river having a large flow of water during the rains which, apart from being generally wasted, at times causes great damage to life and property. It is now proposed to harness the water of this river and some of its tributaries and utilise it in multiple development of the Damodar Valley and the adjoining area.

2. This Bill seeks to set up a Corporation, called the Damodar Valley Corporation on the lines of the Tennessee Valley Authority in the U.S.A. It will be an autonomous body within the framework of the enactment. Its objects, constitution and powers are laid down in the Bill. Briefly, its main function will be to control flood in the Damodar, generate electric power for distribution and provide water for irrigation and other purposes. In addition, the Corporation will endeavour to promote economic development of the Damodar Valley and the adjoining areas. It will consist of three members including the chairman. These three members and the secretary and treasurer will be appointed by the Central Government. The Corporation will have power to acquire land and construct or cause to be constructed such dams, barrages, reservoirs, power houses and power structures, electrical transmission lines, irrigation and navigation works as may be necessary. The capital required by the Corporation will be provided by the Central Government and the Governments of Bihar and West Bengal. The profits and losses will be distributable between these three Governments in certain agreed proportions.

3. The provisions of this Bill are designed to give effect to the broad outlines of the agreement reached between the three Governments concerned.

Part I

INTRODUCTORY

1. Short title, extent and commencement.

1. Short title, extent and commencement.—(1) This Act may be called the Damodar Valley Corporation Act, 1948.

(2) It extends to the States of Bihar and West Bengal.

(3) It shall come into force on such date[i] as the Central Government may, by notification in the Official Gazette, appoint in this behalf.

2. Interpretation.

2. Interpretation.—In this Act, unless there is anything repugnant in the subject or context,—

(1) “Corporation” means the Damodar Valley Corporation;

(2) “Damodar Valley” includes the basin of the Damodar river and its tributaries;

(3) “member” means a member of the Corporation and includes the Chairman;

(4) “participating Governments” means the Central Government, the State Government of Bihar and the State Government of West Bengal;

(5) “prescribed” means prescribed by rules made under Section 59;

(6) “State Government” means the Government of Bihar or as the case may be of West Bengal, and “State Governments” means the Governments of Bihar and of West Bengal;

(7) “regulations” means the regulations made by the Corporation under Section 60.

Part II

ESTABLISHMENT OF THE CORPORATION

3. Incorporation.

3. Incorporation.—(1) With effect from such date[ii] as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established a Corporation by the name of the Damodar Valley Corporation.

(2) The said Corporation shall be a body corporate having perpetual succession and a common seal, and shall by the said name sue and be sued.

4. Constitution of the Corporation.

4. Constitution of the Corporation.—[iii][(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.]

(2) A person shall be disqualified for being appointed, or for continuing as, a member of the Corporation—

(a) if he is a member of [iv][Parliament] or any State Legislature; or

(b) if he has, directly or indirectly, any interest in a subsisting contract made with, or in any work being done for, the Corporation except as a shareholder (other than a director) in an incorporated company provided that where he is a shareholder, he shall disclose to the government the nature and extent of shares held by him in such Company.

(3) No act or proceeding of the Corporation shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the appointment of a member thereof.

5. Conditions of service of members.

5. Conditions of service of members.—[v][(1) * * *]

(2) The remuneration and other conditions of service of the members shall be such as may be prescribed.

6. Appointment of officers and servants.

6. Appointment of officers and servants.—[vi][* * *].

(2) [vii][* * *].

(3) The Corporation may appoint such other officers and servants as it considers necessary for the efficient performance of its functions.

7. Conditions of service of officers and servants.

7. Conditions of service of officers and servants.—The pay and other conditions of service of the officers and servants of the Corporation shall—

(a) [viii][* * *]

(b) as respects the other officers and servants, be such as may be determined by regulations.

8. Functions and duties of members.

[ix][8. Functions and duties of members.—The functions and duties of the members shall be such as may be prescribed.]

9. General disqualification of all officers and servants.

9. General disqualification of all officers and servants.—No person who has directly or indirectly, by himself or his partner or agent, any share or interest in any contract, by or on behalf of the Corporation, or in any employment under, by or on behalf of the Corporation otherwise than as an officer or servant thereof, shall become or remain an officer or servant of the Corporation.

10. Appointment of Advisory Committee.

10. Appointment of Advisory Committee.—Subject to any rules made under Section 59 the Corporation may from time to time appoint one or more Advisory Committees for the purpose of securing the efficient discharge of the functions of the Corporation, and in particular for the purpose of securing that those functions are exercised with due regard to the circumstances and requirements of particular local areas.

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