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THE DAMODAR VALLEY CORPORATION ACT, 1948

Title : THE DAMODAR VALLEY CORPORATION ACT, 1948

Year : 1948



(1) The Central Government shall, by notification in the Official Gazette, specify the limits of the Damodar Valley.

(2) The corporation shall carry out all or any of its functions and exercise all or any of its powers within the Damodar Valley.

(3) The Central Government may, after consultation with the State Governments by notification in the Official Gazette, direct that the Corporation shall carry out such function and exercise such power in such other area as may be specified therein and the area so specified shall be called the "area of operation" of the Corporation.



The functions of the Corporation shall be-

(a) The promotion and operation of schemes for the generation, water-supply and drainage,

(b) The promotion and operation of schemes for the generation, transmission and distribution of electrical energy, both hydroelectric and thermal,

(c) The promotion and operation of schemes for flood control in the Damodar river and its tributaries and the channels, if any,excavated by the Corporation in connection with the scheme and for the improvement of flow conditions in the Hooghly river,

(d) The promotion and control of navigation in the Damodar river and its tributaries and channels, if any,

(e) The promotion of afforestation and control of soil erosion in the Damodar Valley, and

(f) The promotion of public health and the agricultural, industrial, economic and general well-being in the Damodar Valley and its area of operation.



The Corporation may, with the approval of the State Government concerned which shall not be unreasonably withheld, construct canals and distributaries and maintain and operate them:

Provided that the State Government may, after giving notice and subject to the payment of fair compensation, take over the maintenance and operation of any such canal or distributary.



(1) The Corporation may, after consultation with the State Government concerned, determine and levy rates for the bulk supply of water to that Government for irrigation, and fix the minimum quantity of water which shall be made available for such purpose.

(2) The rates at which such water shall be supplied by the State Government to the cultivators and other consumers shall be fixed by that Government after consultation with the Corporation.



The Corporation may determine and levy rates for bulk supply and retail distribution of water for industrial and domestic purposes and specify the manner of recovery of such rates.



If, with a view to operating its schemes, the Corporation has stopped or reduced the supply of water to any person for agricultural, industrial or domestic purposes which such person was, prior to such stoppage or reduction, enjoying by virtue of any prescriptive right, the Corporation shall arrange such supply of water on the same terms as before.



Save as otherwise prescribed, no person shall construct, operate or maintain in the Damodar Valley any dam or other work or any installation for the extraction of water without the consent of the Corporation.



Notwithstanding anything contained in the Indian Electricity Act,1910 (9 of 1910), or any licence granted there under-

(i) No person shall without the permission of the Corporation-

(a) Sell electrical energy to any consumer in the Damodar Valley where the energy is taken by the consumer at a pressure of 30,000 volts or more;

(b) Transmit electrical energy in the Damodar Valley at a pressure of 30,000 volts or more ;

(c) Generate any electrical energy at an installation having an aggregate capacity of more than 10,000 kilowatts in any part of the Damodar Valley lying to the north of the straight line drawn east to west passing through a point at latitude twenty-two degrees, fourteen minutes and forty-seven seconds and longitude eighty- seven degrees, fifty-one minutes and forty-two seconds except such portion of the municipal area of Burdwan as may lie to the north of such straight line:

Provided that nothing in sub-clause (c) shall apply to any person who was, at the commencement of this Act, generating electrical energy at an installation having an aggregate capacity of more than 10,000 kilowatts, so long as the capacity of such installation is not increased:

Provided further that nothing in sub-clause (c) shall apply to the power station installation of the fertiliser factory at Sindri having an aggregate capacity of 80,000 kilowatts so long as the capacity of such installation is not increased beyond 80,000 kilowatts.

(ii) The Corporation may sell electrical energy to any consumer in the Damodar Valley but no such sale shall, except with the permission of the State Government concerned, be made to any consumer requiring supply at a pressure of less than 30,000 volts.

(iii)The Corporation may, with the permission of the State Government concerned, extend its transmission system to any area beyond the Damodar Valley and sell electrical energy in such area.



(1) Where any licence granted under the Indian Electricity Act, 1910 (9 of 1910), becomes inoperative wholly or partly by virtue of the provisions of section 18, the licence shall be deemed to have been revoked or modified so as to be consistent with those provisions.

(2) Where a licence is deemed to have been revoked under sub- section (1) the Corporation shall purchase the undertaking of the licencee, and where a licence is modified under that sub-section, the Corporation shall, at the option of the licensee, either purchase the undertaking or pay fair compensation to the licensee.

(3) The purchase price or the amount of compensation payable by the corporation under sub-section (2) shall be such as may be agreed to between the Corporation and the licensee or, in the event of disagreement, as may be determined by arbitration.



The Corporation shall fix the schedule of charges for the supply of electrical energy, including the rates for bulk supply and retail distribution, and specify the manner of recovery of such charges:

Provided that the Corporation may in any contract for bulk supply of electrical energy impose such terms and conditions including a retail rate schedule as it may deem necessary or desirable to encourage the use of electrical energy.



(1) The Corporation may establish, maintain and operate laboratories, experimental and research stations and farms for conducting experiments and research for-

(a) Utilising the water, electrical energy and other resources in the most economical manner for the development of the Damodar Valley,

(b) Determining the effect of its operations on the flow conditions in the Hooghly river,

(c) Making improvements in navigation conditions in the port of Calcutta, and

(d) Carrying out any other function specified under section 12.

(2) The Corporation may set up its own planning, designing, construction and operating agencies, or make arrangements there for with the participating Governments, local authorities, educational and research institutions or any person carrying on the business of an architect, an engineer or a contractor.



(1) The Corporation shall have the power to do anything which may be necessary or expedient for the purposes of carrying out its functions under this Act.

(2) Without prejudice to the generality of the foregoing provision, such power shall include the power-

(i) To acquire and hold such movable and immovable property as it may deem necessary and to lease, sell or otherwise transfer any such property;

(ii) To construct or cause to be constructed such dams, barrages, reservoirs, power houses, power structures, electrical transmission lines and sub-stations, navigation works, irrigation, navigation and drainage canals and such other works and structures as may be required;

(iii) To prevent pollution of any water under its control and to take all measures to prevent discharges into such water effluents which are harmful to water supply, irrigation, public health or fish life;

(iv) To stock its reservoirs or water courses with fish and to regulate or prohibit taking out fish from the water under its control;

(v) To undertake resettlement of the population displaced by the dams, acquisition of land for reservoirs and protection of water sheds;

(vi) To aid in the establishment of co-operative societies and other organisations for the better use of facilities made available by the Corporation;

(vii) To undertake measures for the prevention of malaria.



(1) The Corporation may, after giving notice to the persons concerned or to the public generally,-

(a) Turn, divert or discontinue the public use of, or permanently close, any road or any part thereof, or

(b) Discontinue the public use of, or permanently close, any open space or any part thereof.

(2) Whenever the Corporation discontinues the public use of, or permanently closes, any road or open space the Corporation shall pay reasonable compensation to every person-

(a) Who was entitled, otherwise than as a licensee, to use such road or open space or part thereof as a means of access, or

(b) Whose immovable property was receiving air and light on account of such open space or part, and who has suffered damage-

(i) In any case falling under clause (a) from such discontinuance or closure and

(ii) In any case falling under clause (b) from the use to which the Corporation has put such open space or part.

(3) In determining the compensation payable to any person under sub-section (2), the Corporation may take into consideration any benefit accruing to such person from the construction, provision or improvement of any other road, or open space at or about the same time that the road or open space or part thereof, on account of which the compensation is to be paid, is discontinued or closed.

(4) When any road or open space or any part thereof is permanently closed under sub-section (1), the Corporation may sell or leave such part of it as is not required for its purposes.



(1) Notwithstanding anything contained in the Acts specified in column one of Part I of the Schedule, the Corporation may carry out all or any of the functions and exercise all or any of the powers of a State Government in the Damodar Valley under the provisions of such Acts specified in column two thereof against each item of column one.

(2) Notwithstanding anything contained in the Acts specified in column one of Part II of the Schedule, any officer authorized by the Corporation may carry out all or any of the functions and exercise all or any of the powers of a Canal Officer, Collector, or Forest Officer, as the case may be, in the Damodar Valley under the provisions of such Acts specified in column two thereof against each item of column one.



The Corporation shall cooperate with the participating Governments, railway authorities and local authorities and bodies, with a view to minimising the inconvenience likely to be caused by the submersion of roads and communications and shall bear the cost of any realignment thereof or resettlement of any population rendered necessary by such submersion.



The Corporation shall make every end eavour to avoid submersion of coal or mineral deposits and shall cooperate with the coal mining industry and the bodies set up by the participating Governments to ensure the maintenance of supplies of sand for stowing purposes in coal mines and in other ways to minimise the inconvenience to the coal mining industry.
Last updated on September, 2016

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