Dvc Asked To Get Bengal, Bihars Consent On Recast
The restructuring plans of the Damodar Valley Corporation (DVC) received a setback at the corporation's board meeting last week when it was pointed out that the corporation must first seek concurrence of the governments of Bihar and Bengal.
An earlier board meeting had even agreed upon the appointment of the Hyderbad-based Administrative Staff College. The last board meeting was to finalise the terms of reference and the fee for the job.
However, it was pointed out at the meeting that the Government of India holding just one-third ownership of the corporation could not order a review of the Damodar Valley Corporation Act. The views of the governments of Bihar and Bengal - the two other co-owners - must also be sought before a restructuring study could be ordered.
The acting Damodar Valley Corporation chairman, J Vasudevan agreed to the legal point. It was decided to write to the Chief Ministers of the two states for their consent on the proposal.
The acting secretary to the corporation, J D Ambastha told Business Standard that the consent of the two Chief Ministers might come as a matter of routine. After all, the Damodar Valley Corporation Act being more than half a century old, no one is likely to oppose a review.
Once the concurrence is received, a formal decision will be taken on the proposed restructuring. Ambastha agreed that all the three participating governments must agree on not only the terms of reference of a study of the Damodar Valley Corporation statutes, but, any legislation to amend the Act would also require the consent of the two state governments.
The draft terms of reference that was earlier circulated by the corporation had proposed far-reaching changes in the corporation's structure and activities.
It suggested privatisation of some of the activities of the 52-year old multifunctional organisation.
There were suggestions for floating joint ventures also to hive off some other activities. The entire exercise, it was argued, was meant to strengthen the commercial viability of the corporation.
The draft terms of reference also wondered if the larger objectives of the Damodar Valley Corporation could be achieved if its structure was left unchanged.
The Damodar Valley Corporation -watchers are wondering why the two state government representatives in the board had first agreed to the appointment of a consultant to review the corporation's statutes.
The manner in which the acting Damodar Valley Corporation chairman reacted to the objections only proved that the Centre too was aware that the concurrence of the two state governments was essential before a study on restructuring could be ordered.