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Report No. 10

7. The Damodar Valley Corporation Act, 1948 (XIV of 1948)

The Act created a statutory corporation for the development of Damodar Valley.

Under section 50 of the Act, any land required by the Corporation for carrying out its function under the Act shall be deemed to be a public purpose and such land shall be acquired for the Corporation as if the provisions of Part VII (Acquisition of Land for Companies) of the Land Acquisition Act, 1894 (1 of 1894) were applicable to it and the Corporation. The procedure for obtaining agreement clause (e) of section 3 of the said Act.

Under section 40 of the Land Acquisition Act, the purposes for which land could be acquired for a company are very restricted. Section 50 of the Damodar Valley Act enlarges the purposes but limits them to the purposes of the Corporation. The procedure for obtaining agreement as in the case of companies is extended to it, perhaps for the reason, that though it is a State controlled Corporation its funds are separate from the State funds. Under the scheme adopted by us, such a corporation would not be a "company" within the definition proposed but the purpose would be a public purpose if the intended acquisition is for the purposes of the corporation as under section 50 above referred to. We have applied the agreement procedure to such cases by a separate section. There is, therefore, no need to treat such corporation as "company's" as under the Damodar Valley Corporation Act.



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