3. Incorporation.—(1) With effect from such date 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.
1. This Act has been amended in the State of West Bengal by West Bengal Act 3 of 1956.
2. 2nd April, 1948, see Gazette of India, Part I.
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4. Constitution of the Corporation.—
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[(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 Government 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.
(1A) 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.
(1B) 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.
(1C) The Chairman shall be the Chief Executive Officer of the Corporation.
(1D) Without prejudice to the provisions contained in sub-section (1C), 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 2
[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. —
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* * * * * *
(2) The remuneration and other conditions of service of the members shall be such as may be
prescribed.
6. Appointment of officers and servants. —
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* * * * *
(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.—The pay and other conditions of service of the
officers and servants of the Corporation shall—
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* * * * *
(b) as respects the other officers and servants, be such as may be determined by regulations.
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[8. Functions and duties of members.—The functions and duties of members shall be such as may
be prescribed.]
1. Subs. by Act 1 of 2012, s. 2, for sub-section (1) (w.e.f. 19-8-2013).
2. Subs. by the A.O. 1950, for “the Central”.
3. Sub-section (1) omitted by Act 59 of 1957, s. 2.
4. Subs-sections (1) and (2) omitted by Act 1 of 2012, s. 3 (w.e.f. 19-8-2013).
5. Clause (a) omitted by s. 4, ibid. (w.e.f. 19-8-2013).
6. Subs. by s. 5, ibid., for section 8 (w.e.f. 19-8-2013).
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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.—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.