(1) The Board shall, after taking credit for any subvention from the State Government under section 63, carry on its operations under this Act and adjust its tariffs so as to ensure that the total revenues in any year of account shall after meeting all expenses properly chargeable to revenues, including operating, maintenance and management expenses, taxes (if any) or income and profits, depreciation and interest payable on all debentures, bonds and loans,2*[leave such surplus as is not less than three per cent, or such higher percentage, as the State Government may, by notification in the Official Gazette, specify in this behalf, of the value of the fixed assets of the Board in service at the beginning of such year. Explanation. -For the purposes of this sub-section, "value of the fixed assets of the Board in service at the beginning of the year" means the original cost of such fixed assets as reduced by the aggregate of the cumulative depreciation in respect of such assets calculated in accordance with the provisions of this Act and consumers' contributions for service lines.]
(2) In specifying3*[any higher percentage] under sub-section (1), the State Government shall have due regard to the availability of amounts accrued by way of depreciation and the liability for loan amortization and leave-
(a) A reasonable sum to contribute towards the cost of capital works; and
(b) Where in respect of the Board, a notification has been issued under sub-section (1) of section 12A, a reasonable sum by way of return of the capital provided by the State Government under sub-section (3) of that section and the amount of the loans (if any) converted by the State Government into capital under sub-section (1) of section 66A.]
(1) All debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by, with or for the State Government for any of the purposes of this Act before the first constitution of the Board shall be deemed to have been incurred, entered into or engaged to be done by, with or for the Board; and all suits or other legal proceedings instituted or which might but for the issue of the notification under sub-section (4) of section I have been instituted by or against the State Government may be continued or instituted by or against the Board.
1*[(1A) All Schemes sanctioned by the State Government and transferred to the Board shall, for the purposes of this Act, be deemed to have been sanctioned by the Board.]
(2) All expenditure which the State Government may, not later than2*[one year] after the first constitution of the Board, declare to have been incurred3[***] on capital account in connection with the purposes of this Act shall be deemed to be a loan advanced to the Board under section 64 on the date of the said declaration, and all the assets acquired by such expenditure shall thereupon vest in the Board.
60A 4* Period of limitation extended in certain cases
When the right to recover any amount due to the State Government for or in connection with the consumption of electricity is vested in the Board and the period of limitation to enforce such right has expired before the constitution of the Board, or within three years of its constitution, then, notwithstanding anything contained in the Indian Limitation Act, 1908 (9 of 1908) or any other law for the time being in force relating to limitation of action, the Board may institute a suit for the recovery of such amount, -
(i) Where it has been constituted before the commencement of the Electricity (Supply) Amendment Act, 1966 (30 of 1966) within three years of such commencement; and
(ii) Where it has been constituted after such commencement, within three years of its constitution.]
(1) In February of each year the Board shall submit to the State Government a statement in the prescribed form of the estimated capital and revenue receipts and expenditure for the ensuing year.
(2) The said statement shall include a statement of the salaries of 1*[members and officers and other employees] of the Board and of such other particulars as may be prescribed.
(3) The State Government shall as soon as may be after the receipt of the said statement cause it to be laid on the table of the 2 [House], or as the case may be, 3*[Houses] of the State Legislature; and the said statement shall be open to discussion therein, but shall not be subject to vote.
(4) The Board shall take into consideration any comments made on the said statement in the State Legislature.
(5) The Board may at any time during the year in respect of which a statement under sub-section (1) has been submitted, submit to the State Government a supplementary statement, and all the provisions of this section shall apply to such statement as they apply to the statement under the said sub-section.
(1) Save where in the opinion of the Board circumstances of extreme urgency have arisen, no sum exceeding1*[seventy-five thousand] rupees on account of recurring expenditure or exceeding2*[three lakhs] of rupees on account of non-recurring expenditure shall be expended by the Board in any year of account unless such sum has been included in a statement submitted under sub-section (1) or sub-section (5) of section 61.
(2) Where any such sum is expended under circumstances of extreme urgency3*[, it shall be expended in accordance with the regulations made by the Board with the previous approval of the State Government and] a report thereon indicating the source from which it is proposed to meet the expenditure shall be made as soon as practicable to the State Government.
The State Government may, with the approval of the State Legislature from time to time make subventions to the Board for the purposes of this Act on such terms and conditions as the State Government may determine.
The State Government may, from time to time, advance loans to the Board on such terms and conditions, not inconsistent with the provisions of this Act, as the State Government may determine.
(1) The Board may, from time to time, with the previous sanction of the State Government and subject to the provisions of this Act and to such conditions as may be prescribed in this behalf, borrow any sum required for the purposes of this Act.
(2) Rules made by the State Government for the purposes of this section may empower the Board to borrow by the1[issue of debentures or bonds] or otherwise and to make arrangements with bankers, and may apply to the Board with such modifications as may be necessary to be consistent with this Act the provisions of the Local Authorities Loans Act, 1914 (9 of 1914) and the rules made thereunder as if the Board were a local authority.
(3) The maximum amount which the Board may at any time have on loan under sub-section (1) shall be ten crores of rupees, unless the State Government, with the approval of the State Legislative Assembly, fixes a higher maximum amount.
(4)2*[Debentures or bonds issued] by the Board under this section shall be issued, transferred, dealt with the redeemed in such manner as may be prescribed.
The State Government may guarantee in such manner as it thinks fit the payment of the principal and interest of any loan proposed to be raised by the Board or of either the principal or the interest:
Provided that the State Government shall, so long as any such guarantees are in force, lay before the1*[House] or, as the case may be,2*[Houses] of the State Legislature in every year during the budget session a statement of the guarantees, if any, given during the current financial year of the State and an up-to-date account of the total sums, if any, which have been paid out of State revenues by reason of any such guarantees or paid into State revenues towards repayment of any money so paid out.
66A 3*Conversion of amount of loans into capital
(1) Notwithstanding any¬thing contained in section12A, where any loan has been obtained from the State Government by a Board, in respect of which Board a notification has been made under sub-section (1) of that section, or any loan is deemed to be advanced to such Board by the State Government under sub-section (2) of section 60, the State Government may, if in its opinion it is necessary in the public interest so to do, by order, direct that the amount of such loan or any part thereof shall be converted into capital provided to the Board on such terms and conditions as appear to that Government to be reasonable in the circumstances of the case, even if the terms of such loan do not include a term providing for an option for such conversion.
(2) In determining the terms and conditions of such conversion, the State Government shall have due regard to the following circumstances, that is to say, the financial position of the Board, the terms of the loan, the rate of interest payable on the loan, the capital of the Board, its loan liabilities and its reserves.
(3) Notwithstanding anything contained in this Act, where the State Government has, by an order made under sub-section (1), directed that any loan or any part thereof shall be converted into capital, and such order has the effect of increasing the capital of (he Board, the capital of the Board shall stand increased by the amount by which the conversion increases the capital of the Board in excess of the capital specified under sub-section (1) of section 12A:
Provided that the amount of the loan so converted together with the capital provided under sub-section (3) of section 12A shall not exceed the amount representing the aggregate of the outstanding loans of the Board after such conversion.]
The Board shall distribute the surplus referred to in sub-section (1) of section 59 to the extent available in a particular year in the following order, namely:-
(i) Repayment of principal of any loan raised (including redemption of debentures of bonds issued) under section 65 which becomes due for payment in the year or which became due for payment in any previous year and has remained unpaid;
(ii) Repayment of principal of any loan advanced to the Board by the State Government under section 64 which becomes due for payment in the year or which became due for payment in any previous year and has remained unpaid;
(iii) Payment for purposes specified in sub-section (2) of section 59 in such manner as the Board may decide.]
67A 2* Interest on loans advanced by State Government to be paid only after other expenses
Any interest which is payable on loans advanced under section 64 or deemed to have been advanced under section 60 to the Board by the State Government and which is charged to revenues in any year may be paid only out of the balance of the revenues, if any, of that year which is left after meeting all the other expenses referred to in sub-section (1) of section 59 and so much of such interest as is not paid in any year by reason of the provisions of this section shall be deemed to be deferred liability and shall be discharged in accordance with the provisions of this section in the subsequent year or years, as the case may be.]
(1) 2 [***] The Board shall provide each year for depreciation such sum calculated in accordance with such principles as the Central Government may, after consultation with the Authority, by notification in the Official Gazette, lay down from time to time. 3 [***]
(3) The provisions of this section shall apply to the charging of depreciation for the year in which the Electricity (Supply) Amendment Act, 1978 (23 of 1978), comes into force.]
1. Section 68 Substituted by Act 101 of 1956, Section 18 w.e.f. 30-12-1956 again Substituted by Act 30 of 1966. Section 15 w.e.f. 16-9-1966 and again Substituted by Act 23 of 1978, Section 15 w.e.f. 3-6-1978.
2. The words "Subject to the provisions of section 67," omitted by Act 16 of 1983, Section 5 w.e.f. 1-4-1985.
3. Sub-section (2) omitted by Act 16 of 1983, Section 5 w.e.f. 1-4-1985.
(1) The Board shall cause proper accounts and other records in relation thereto to be kept, including a proper system of internal check and prepare an annual statement of accounts, including the profit and loss account and the balance-sheet in such form2*[as the Central Government may, by notification in the Official Gazette, prescribe by rules made in this behalf in consultation with the Comptroller and Auditor-General of India and State Governments].
(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India or by such person as he may authorize in this behalf and any expenditure incurred by him in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any person authorized by him in connection with the audit of the accounts of the Board shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of Government accounts and in particular shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers, and to inspect any of the offices of the Board.
(4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person authorized by him in this behalf together with the audit report thereon shall be3*[forwarded to the Authority and to the State Government within six months of the close of the year to which the accounts and audit report relate] and that Government may issue such instructions to the Board in respect thereof as it deems fit and the Board shall comply with such instructions.
(5) The State Government shall-
(a) Cause the accounts of the Board together with the audit report thereon forwarded to it under sub-section (4) to be laid annually before the State Legislature; and
(b) Cause the accounts of the Board to be published in the prescribed manner and make available copies thereof on sale at a reasonable price.]
4*[(6) The provisions of sub-section (3) of section 4B shall apply in relation to any rules made by the Central Government under sub-section (1) as they apply in relation (o rules made by that Government under Chapter II.]
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