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.
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.