Damodar Valley Corporation Act, 1948- Sections 27 to 47

Part IV

FINANCE, ACCOUNTS AND AUDIT

27. Expenditure till the Corporation is established.

27. Expenditure till the Corporation is established.—All expenditure incurred by the Central Government for and in connection with the establishment of the Corporation up to the date of its establishment shall be treated as the capital provided by the Central Government to the Corporation and such capital shall be adjusted between the participating Governments in accordance with the provisions of Sections 30 to 36.

28. Vesting of property in the Corporation.

28. Vesting of property in the Corporation.—All property acquired and works constructed for the purposes of the Damodar Valley scheme before the establishment of the Corporation shall vest in the Corporation and all income derived and expenses incurred in this behalf shall be brought into the books of the Corporation.

29. Fund of the Corporation.

29. Fund of the Corporation.—(1) The Corporation shall have its own fund and all receipts of the Corporation shall be carried thereto and all payments by the Corporation shall be made therefrom.

(2) Except as otherwise directed by the Central Government, all moneys belonging to that fund shall be deposited in the Reserve Bank of India or the Agents of the Reserve Bank of India or invested in such securities as may be approved by the Central Government.

30. Liabilities of participating Governments to provide capital to the Corporation.

30. Liabilities of participating Governments to provide capital to the Corporation.—The participating Governments shall, as hereinafter specified, provide the entire capital required by the Corporation for the completion of any project undertaken by it.

31. Payment by participating Government on specified date.

31. Payment by participating Government on specified date.—Each participating Government shall provide its share of the capital on the dates specified by the Corporation and if any Government fails to provide such share on such dates the Corporation may raise loan to make up the deficit at the cost of the Government concerned.

32. Expenditure on objects other than irrigation, power and flood control.

32. Expenditure on objects other than irrigation, power and flood control.—The Corporation shall have power to spend such sums as it thinks fit on objects authorized under this Act other than irrigation, power and flood control and such sums shall be treated as common expenditure payable out of the fund of the Corporation before allocation under Section 32.

33. Allocation of expenditure chargeable to project on main objects.

33. Allocation of expenditure chargeable to project on main objects.—The total capital expenditure chargeable to a project shall be allocated between the three main objects, namely, irrigation, power and flood control as follows, namely:—

(1) expenditure solely attributable to any of these objects, including a proportionate share of overhead and general charges, shall be charged to that object, and

(2) expenditure common to two or more of the said objects, including a proportionate share of overhead and general charges, shall be allocated to each of such objects in proportion to the expenditure which, according to the estimates of the Corporation, would have been incurred in constructing a separate structure solely for that object, less any amount determined under clause (1) in respect of that object.

34. Capital allocated to irrigation.

34. Capital allocated to irrigation.—The total amount of capital allocated to irrigation shall be shared between the State Governments as follows, namely:—

(1) the Government concerned shall be responsible for the capital cost of the works constructed exclusively for irrigation in its State; and

(2) the balance of capital cost under irrigation for both the States of Bihar and West Bengal shall be shared by the State Governments in the proportion to their guaranteed annual off-takes of water for agricultural purposes:

Provided that the divisible capital cost under this clause shall be provisionally shared between them in accordance with their previously declared intentions regarding their respective guaranteed off-takes and any payments made accordingly shall be adjusted after the determination of the guaranteed off-takes.

35. Capital allocated to power.

35. Capital allocated to power.—The total amount of capital allocated to power shall be shared equally between the three participating Governments.

36. Capital allocated to flood control.

36. Capital allocated to flood control.—The total amount of capital up to fourteen crores of rupees allocated to flood control shall be shared equally between the Central Government and the Government of West Bengal and any amount in excess thereof shall be the liability of the Government of West Bengal.

37. Disposal of profits and deficits.

37. Disposal of profits and deficits.—(1) Subject to the provisions of sub-section (2) of Section 40, the net profit, if any, attributable to each of the three main objects, namely, irrigation, power and flood control, shall be credited to the participating Governments in proportion to their respective shares in the total capital cost attributed to that object.

(2) The net deficit, if any, in respect of any of the objects shall be made good by the Governments concerned in the proportion specified in sub-section (1);

Provided that the net deficit in respect of flood control shall be made good entirely by the Government of West Bengal and the Central Government shall have no share in such deficit.

38. Payment of interest.

38. Payment of interest.—The Corporation shall pay interest on the amount of capital provided by each participating Government at such rate as may, from time to time, be fixed by the Central Government and such interest shall be deemed to be part of the expenditure of the Corporation.

39. Interest charge and other expenses to be added to and receipts taken for reduction of capital cost.

39. Interest charge and other expenses to be added to and receipts taken for reduction of capital cost.—For a period, not exceeding fifteen years, from the establishment of the Corporation, if the Corporation runs in deficit, the interest charges and all other expenditure shall be added to the capital cost and all receipts shall be taken in reduction of such capital cost.

40. Provision for depreciation and reserve and other funds.

40. Provision for depreciation and reserve and other funds.—(1) The Corporation shall make provision for depreciation and for reserve and other funds at such rates and on such terms as may be specified by the Auditor-General of India in consultation with the Central Government.

(2) The net profit for the purposes of Section 37 shall be determined after such provision has been made.

41. Corporation's share in betterment levy by State Governments.

41. Corporation's share in betterment levy by State Governments.—In the event of any betterment levy being imposed by a State Government the proportionate proceeds thereof in so far as they are attributable to the operations of the Corporation shall be credited to the Corporation.

42. Borrowing of money.

42. Borrowing of money.—The Corporation may, with the approval of the Central Government, borrow money in the open market or otherwise for the purposes of carrying out its functions under this Act.

43. Liability to pay Central taxes.

43. Liability to pay Central taxes.—(1) The Corporation shall be liable to pay any taxes on income levied by the Central Government in the same manner and to the same extent as a company.

(2) The State Governments shall not be entitled to any refund of any such taxes paid by the Corporation.

44. Budget.

44. Budget.—(1) The Corporation, in consultation with the [i][member (finance)], shall in October each year prepare in such form as may be prescribed a budget for the next financial year showing the estimated receipts and expenditure and the amounts which would be required from each of the three participating Governments during that financial year.

(2) Printed copies of the budget shall be made available to each of the three participating Governments by the 15th day of November each year.

(3) The budget shall be laid before [ii][Parliament] and the State Legislatures concerned as soon as may be after it is prepared.

45. Annual report.

45. Annual report.—(1) The Corporation shall prepare, in such form as may be prescribed, an annual report within six months after the end of each financial year giving a true and faithful account of its activities during the previous financial year, with particular reference to—

(i) irrigation;

(ii) water suply;

(iii) electrical energy;

(iv) flood control;

(v) navigation;

(vi) afforestation;

(vii) soil erosion;

(viii) use of lands;

(ix) resettlement of displaced population;

(x) sanitation and public health measures; and

(xi) economic and social welfare of the people.

(2) The annual report shall also give a true and faithful account of the income and expenditure during the previous financial year, the net amounts attributable to each of the three main objects and the distribution of the capital cost between the three participating Governments and show the progressive totals from the inception of the Corporation and the up-to-date financial results.

(3) The payments provisionally made by each of the three participating Governments on the basis of the budget estimates shall be adjusted as soon as possible in accordance with the allocation made in the annual report.

(4) Printed copies of the annual report shall be made available to each of the three participating Governments by the 15th day of October each year.

(5) The annual report shall be laid before [iii][Parliament] and the State Legislatures concerned as soon as may be after it is prepared.

46. Other annual financial statements.

46. Other annual financial statements.—(1) The Corporation shall also prepare such other annual financial statements in such form and by such dates as may be prescribed.

(2) Printed copies of each such annual financial statement shall be made available to each of the three participating Governments by such date as may be prescribed.

47. Accounts and audit.

47. Accounts and audit.—The accounts of the Corporation shall be maintained and audited in such manner as may, in consultation with the Auditor-General of India, be prescribed.

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