Amendment to Damodar Valley Corporation Act, 1948

Press Information Bureau
Government of India
Ministry of Power

16-June-2011 12:18 IST

Amendment to Damodar Valley Corporation Act, 1948

The Union Cabinet today approved introduction of Damodar Valley Croporation (Amendment) Bill 2011 for the reconstitution of the Damodar Valley Corporation with four full time members, namely, Chairman, Member (Technical), Member (Finance) and Member Secretary; and six part time members, namely – one representative from the Central Government; two representatives – one each from the Government of Jharkhand and the Government of West Bengal; three independent experts- one each from the field of irrigation, water supply and generation or transmission of electricity. The Chairman will be the Chief Executive Officer of the Corporation. The posts of Financial Adviser and Secretary will be abolished.

A Bill to this effect will be introduced in the ensuing session of the Parliament.

The proposed amendment shall broad base and professionalise DVC by bringing outside professional independent experts to discharge its responsibilities more effectively and efficiently, allocate resources optimally and augment and generate large resources in order to take up new projects and to become a major power producer in the country besides doing its mandatory functions such as flood control, irrigation, water supply etc.

Background:

The Damodar Valley Corporation(DVC) was constituted under the Damodar Valley Corporation Act, 1948(Act). The Corporation is vested with the authority and autonomy for the integrated development of the Damodar River Valley.

Over the last more than sixty years, the role and expectations from DVC 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, DVC has built power plants and stepped up its generation capacity over the years.

Ministry of Power appointed the Administrative Staff College of India (ASCI) to examine various alternative models for restructuring DVC and suggest the most viable one which would enable DVC to discharge its responsibilities more effectively and efficiently. The ASCI recommended the need of making the Corporation more broad based and professional.

Ministry of Power discussed the recommendations of the ASCI with the representatives of Governments of West Bengal, Jharkhand and the then Chairman, DVC. It was decided to amend the sub-section (1) of Section 4 of the Act relating to constitution of DVC Board. The Damodar Valley Corporation (Amendment) Bill, 2007 was introduced in the Lok Sabha on 4th May, 2007 and the Bill was referred to the Standing Committee on Energy for detailed examination. The Standing Committee on Energy in its report suggested certain modifications in the Bill. The Ministry examined the recommendations contained in the Report and prepared a fresh proposal.

AD/SK/SM

The chairman will be designated chief executive officer of DVC while posts of financial adviser and secretary will be abolished

Government will introduce a bill in the ensuing session of parliament to reconstitute Damodar Valley Corporation (DVC). The cabinet in its decision here approved introduction of DVC (Amendment) Bill 2011 with four full time members including a chairman, member (technical), member (finance) and member secretary.


The chairman will be designated chief executive officer of DVC while posts of financial adviser and secretary will be abolished, a statement issued by cabinet said.


Apart from the four full time members, there will be six part time members – one representative from the central government; one representative each from the government of Jharkhand and West Bengal; one independent expert each from the fields of irrigation, water supply and generation or transmission of electricity.


DVC was constituted under the Damodar Valley Corporation Act, 1948(Act). The corporation is vested with authority and autonomy for the integrated development of the Damodar river valley.


Since more than 60 years, the role and expectations from DVC have changed significantly due to industrial development in the valley area. The demand for power by industry like coal, steel, railways and other consumers has gone up considerably and DVC has built power plants and stepped up its generation capacity over the years.


The DVC (Amendment) Bill 2007 was introduced in the Lok Sabha on May 4, 2007 and it was referred to the standing committee on energy for detailed examination. The standing committee on Energy in its report suggested certain modifications in the Bill. The ministry examined the recommendations contained in the report and prepared a fresh proposal.


“The proposed amendment shall broad base and professionalise DVC by bringing outside professional independent experts to discharge its responsibilities more effectively and efficiently,” statement said. It would allocate resources optimally and generate large resources in order to take up new projects and to become a major power producer in the country besides doing its mandatory functions such as flood control, irrigation, water supply, it added.

New bill in House soon to reconstitute DVC

The government is to table a Bill in the coming session of Parliament to reconstitute the Damodar Valley Corporation (DVC), in line with recommendations from the Administrative Staff College of India, the Union Cabinet decided today.
The present DVC Act came into being in 1948, the first multipurpose river valley project of independent India. Modelled on the Tennessee Valley Authority of the US, the 24,000 sq km covered by DVC activities are partly in Jharkhand and partly in West Bengal.
The Union ministry of power had asked ASCI to examine various alternative models for restructuring the DVC in line with today’s needs and suggest the most viable one. The aim was to make the functioning more professional.

The Bill would amend the present DVC Act to have a board with four full-time members (chairman, member (technical), member (finance) and member-secretary, with the chairman also the CEO) and six part-time members. Namely, a representative each from the central government and the two state governments and three independent experts, one each from the fields of irrigation, water supply and generation or transmission of electricity.

Govt clears bill for inducting professionals into DVC

NEW DELHI: The government today cleared a bill for introduction in Parliament that will facilitate induction of independent professionals into the state-run power firm Damodar Valley Corporation.

The decision to facilitate the running of DVC in line with modern corporate practices was taken by the Union Cabinet .

Under the proposed structure, the DVC board will have four full-time members, including Chairman, and six part-time members, including those representing the Centre and the state governments of Jharkhand and West Bengal.

The part-time members will also include independent experts in the field of irrigation, water supply and electricity transmission, an official statement said.

The Chairman will also be CEO of the Corporation which was constituted by an Act of Parliament in 1948. It was mandated with authority and autonomy for an integrated development of Damodar River Valley.

The bill to amend Damodar Valley Corporation Act will be introduced in the ensuing session of Parliament, it said.

The changes in the management structure are brought about as per recommendations of a study conducted by the Hyderabad-based Administrative Staff College of India (ASCI).

As per the current organisational structure of the company, there is a Chairman and two members representing Jharkhand and West Bengal.

Over the last more than sixty years, the role and expectations from DVC have changed significantly due to industrial development in the valley area.

The proposed amendment shall broad base and professionalise DVC by bringing outside professional independent experts to discharge its responsibilities more effectively and efficiently.

Coal Ministry revokes mining licences of NTPC, DVC

NEW DELHI: The coal ministry on Thursday issued orders to revoke mining licences of five blocks of NTPC, Damodar Valley Corp and Jharkhand State Electriciy Board . Of the five coal blocks, three -- Chatti Bariatu, Chatti Bariatu (South) and Kerandari- belong to NTPC. The company denied offering any comment.

The coal ministry had last month announced decision to revoke licences of 15 coal and lignite blocks, 12 of which belonged to state-run companies. On June 1, letters were issued to three companies Bhaidyanath Ayurved Bhavan, Andhra Pradesh Power Generation Corp and Bhatia International for cancellation of five blocks.

Chatti Bariatu and Kerandari coal blocks were allocated to NTPC in 2006, while Chatti Bariatu (South) coal block was given to public sector firm in 2007.

The other two blocks are Damodar Valley Corp's Saharpur Jamarpani and Jharkhand State Electricity Board's Banhardih. While Saharpur Jamarpani was allocated in 2007, Banhardih was given in 2006.
The move is followed by recommendations of a review committee on progress of coal blocks. The panel had originally recommended de-allocation of 31 coal blocks held by 26 firms including Tata Steel , NTPC, Hindalco and Nevyeli Lignite Corporation. The de-allocated blocks would be allotted to Coal India Ltd or its subsidiaries for mining.

Facilitate the induction of independent professionals in power utility Damodar Valley Corporation (DVC)

The cabinet today cleared a bill, which will broadbase the management structure and facilitate the induction of independent professionals in power utility Damodar Valley Corporation (DVC). The bill will be introduced in the monsoon session of Parliament.

Under the proposed structure, the DVC board will have four full-time members, including the chairman, and six part-time members, including those representing the Centre and the state governments of Jharkhand and Bengal. The part-time members will also include independent experts in irrigation, water supply and electricity transmission.

Union Power ministry has finally appointed a full time chairman at the State-run Damodar Valley Corporation (DVC)

Union Power ministry has finally appointed a full time chairman at the State-run Damodar Valley Corporation (DVC). R N Sen, Chief Executive Officer of NTPC SAIL Power Corporation Ltd, took up the reins of DVC with effect from June 10.

DVC Chairman’s post has been lying vacant since July 20, 2010, when its previous Chairman Subrata Biswas and IAS officer was prematurely repatriated to his parent cadre, that is Kerala.

Before Biswas had taken over as the Chairman of DVC, the State-run power utility had been without a full time chairman for ten months also.

DVC Officers’ Forum spokesman Ashok Mukherjee told FC, “It has been our long pending demand before the union power ministry and union finance minister, Pranab Mukherjee, that someone with engineering background should be at the DVC’s helms to steer the organisation’s ways clear through this crisis. We are happy that the Centre has responded positively.”