Updated: Monday August 04, 2014/AlEthnien
Shawwal 08, 1435/Somavara
Sravana 13, 1936, at 08:50:27 PM
The Power Development
Organization Act, 2014
Dated: 09-04-2014
No.
LD/Legis-Act/352-63/2014 The following Act of Assembly received the assent of
the President on the 1st day of April, 2014, is hereby published for general information.
[Act XXI of 2014]
An Act to
provide legal protection for the development of water resources of the Azad
Jammu and
Whereas,
it is expedient to regulate the development of water resources of the Azad
Jammu and
It
is hereby enacted as follows:---
CHAPTER I
PRELIMINARY
1.
Short title, Extent and
Commencement.-
(1) This Act may be called the Power Development Organization Act, 2014.
(2)
It shall extend to the whole of the Azad Jammu and
(3)
It shall come into force at once.
2.
Definitions.- In this Act, unless there
is anything repugnant in the subject or context:-
(i)
“Assembly” means the Legislative Assembly of the Azad Jammu and
(ii)
“Bank” means a Bank for the time being included in the list of Bank maintained
under subsection (1) of section 37 of the State Bank of Pakistan Act, 1956 (Act XXXIII of 1956) and the Bank of Azad Jammu
and Kashmir;
(iii)
“Board” means the Board of Directors of the Organization constituted under
Section 4;
(iv)
“Chairman” means the Chairman of the Board;
(v)
“Company” means a Company registered in
(vi)
“Director General” means the Director General Private Power Cell;
(vii)
“Federal Government” means the Government of Islamic Republic of Pakistan;
(viii)
“Fund” means the Organizational fund established under Section 23.
(ix)
“Government” means the Azad Government of the State of
(x)
“IPP” means Independent Power Producer;
(xi)
“Land” includes benefits arising out of land and things attached to the earth
or permanently fastened to anything attached to the earth;
(xii)
“Local body” means a Local Council constituted under the Local Government Act,
1990;
(xiii)
“LOI” means letter of interest to be issued by the Private Power Cell;
(xiv)
“LOS” means letter of support to be issued by the Private Power Cell;
(xv)
“Managing Director” means the Managing Director of the Organization;
(xvi)
“Member” means a member of the Board;
(xvii)
”Misconduct” means conduct prejudicial to good order or service discipline
or contrary to the Government Servants (Conduct) Rules as applicable to the
Azad Jammu and Kashmir or conduct unbecoming of an officer and gentleman and
includes any act to bring or attempt to bring political or other outside
influence directly or indirectly to bear on the Government or any Governments
Officer in respect of any matter relating to the appointment, promotion,
transfer, punishment, retirement or other conditions of services;
(xviii)
“NEPRA” means the National Electric Power Regulatory Authority of Pakistan
established under Section 3 of the Regulation of Generation Transmission and
Distribution of Electric Power Act, 1997 (Act XL of 1997);
(xix)
“Act” means Azad Jammu and Kashmir Power Development Organization Act, 2014;
(xx)
“Organization” means the Azad Jammu and Kashmir Power Development Organization
established under Section 3 of the Act;
(xxi)
“Officer” means an Officer of the Organization including the Managing Director;
(xxii)
“Power” includes hydraulic power, electrical energy, steam, gas or any other
power notified as such by the Government in the official Gazette;
(xxiii)
“Private Power Cell” means a cell of the Organization to facilitate the IPPs in
private sector as defined in the Section 15 sub-section (2) clause (g);
(xxiv)
“Prescribed” means prescribed by rules and regulations;
(a)
”Regulations” means regulations madeunder the Act; and
(b)
”Rules” means rules made under the Act;
(xxii)
“Secretary Board” means Secretary Board of Directors of the
Organization;
(2)
Expressions and other terms which have not been defined herein before shall
carry the same meanings as assigned to them under power policies of the Federal
Government adapted and made applicable in Azad Jammu and Kashmir by the
Government from time to time.
CHAPTER II
CONSTITUTION OF THE BOARD
3.Establishment of Organization.- There shall be an Organization to
be known as the Azad Jammu and Kashmir Power Development Organization.
(2)
The Organization shall be a body corporate having power to acquire and
hold property, both movable and immovable and shall have perpetual succession
and
a common seal and may by the said name sue and be sued.
(3)
The head office of the Organization shall be at Muzaffarabad.
4. Board of
Directors.- (1)
The powers and functions of the Organization shall vest in the
Board constituted under sub-section (2).
(2)
The Board shall consist of the following:---
(i)
The Prime
Minister
Chairman
(ii)
The Minister
Incharge
Vice-Chairman
(iii)
The Minister Finance, Planning & Development
Member(s)
(iv)
The Chief
Secretary
Member
(v)
The Additional Chief Secretary (Dev.)
Member
(vi)
The Secretary Finance
Member
(vii)
The Secretary
Electricity/HEB
Member
(viii)
The Managing Director
Member
(ix)
One member to be nominated by the
Government Member
From
the Private Sector
(x)
Representative of PP & IB
Member
(xi)
Director General Private Power Cell
Member
(xii)
Secretary Board
Secretary/Member
5. Managing
Director.- (1) The
Government shall appoint a person, with the prescribed experience as the
Managing Director of the Organization.
(2)
The Managing Director shall be the chief executive of the Organization
and shall be responsible for its day to day administration and management. He
shall also be responsible to carry out and implement the orders and decisions
of the Board.
(3)
The term of office of the Managing Director shall be three years. On expiry
of his term, the Government may reappoint the Managing Director if it is considered
necessary and on such terms and conditions as it may deem fit:
(4)
The Managing Director may, at any time, resign from his office and by
virtue of his resignation, he shall cease to be the Managing Director:
Provided
that his resignation in either case shall not take effect until accepted by the
Government.
6. Secretary
of Organization.-There
shall be a full-time Secretary of the Organization, who shall, under the
general supervision of the Managing Director, be responsible to deal with the
proceedings of the Board meetings and other matters entrusted to him by the
Organization.
7. Employment.-(1) The Organization may employ such
experts, advisors, consultants and other officers as it considers necessary for
the efficient performance of functions of the Organization, on such terms and
conditions as may be determined by the Board with the approval of the
Government.
(2)
The Managing Director, in case of urgency may appoint such experts, consultants
and other officers as may be considered necessary with the approval of the
Chairman:
Provided
that every appointment made under this sub-section shall be reported to the
Board without unnecessary delay and shall not continue beyond six months unless
approved by the Board.
8. Removal
of Managing Director
(1) Managing Director shall not be removed from office during the terms of his
office except in the manner hereinafter provided:-
(a)
If the Government is of the opinion that Managing Director,---
(i)
may have been guilty of Misconduct; or
(ii)
may be incapable of properly performing the duties of his office by reason of
physical or mental incapacity.
(b)
The Government shall appoint a Secretary to the Government as an Inquiry
Officer, to enquire into the said matter.
(2)
If the Inquiry Officer, after inquiring into the matter, reports to the
Government that he is of the opinion that the Managing Director has been guilty
of Misconduct or is incapable of performing the duties of his office, the
Government shall remove the Managing Director from his office.
9. Meeting
of the Board.- (1)
The Board shall meet at least once in every four months in such manner and at
such time and place as may be prescribed by the Chairman.
(2) The
Chairman, or in his absence, the Vice Chairman shall preside over the meeting
of the Board. In the absence of the Chairman and the Vice Chairman, a member
authorized by the Chairman shall preside over the meeting and five other
members shall constitute the quorum at meeting of the Board.
CHAPTER III
POWER AND DUTIES OF THE ORGANIZATION
10. General Powers
and duties of the Organization.- (1) Subject to any other law for the time being in force, and
in pursuance of Power policies of Federal Government and the Government adapted
and made applicable in Azad Jammu and Kashmir from time to time, the
Organization shall prepare, for the approval of the Government, a comprehensive
plan for the development and utilization of the water resources of the Azad
Jammu and Kashmir. The Organization may also undertake such other tasks/schemes
as the Government may direct.
(2)
Without prejudice to the provisions of sub-section (1), the Organization
may prepare reports or schemes for the Government providing for all or any of
the following matters, namely:
i)
The development and the use of water resources to generate and transmit power.
ii)
The construction, maintenance and operations of power houses, grids,
micro-grids and transmission lines connected with the power houses .
(3)
Every report or scheme prepared by the Organization under sub-section (1) and
(2) shall be processed in accordance with the Government policies or
instructions, which may be issued to the Organization from time to time. The
Organization shall submit to the Government periodical reviews and other
reports.
(4)
The Government may sanction or refuse to sanction or return for
re-consideration or for re-examination of any report or scheme submitted to it
under sub-section (3), or may call for such further details, or information
about any such report or scheme as it may consider necessary.
(5)
The Organization shall assist and facilitate the Government and IPPs on all
matters regarding joint ventures in the Power sector.
11. Survey and
experiments.-The
Organization, if considers necessary or expedient for
carrying out the purposes of the Ordinance, may,---
(a)
cause studies, pre-feasibility studies, detailed feasibility studies, surveys,
experiments of technical research to be made; or
(b)
contribute towards the cost of any such studies, surveys, experiments or
technical research made by any other agency.
12. Winding up the
Hydro Electric Board and Transfer of its assets and liabilities.- (1) The Azad Azad Jammu and Kashmir Hydro
Electric Board already established by the Government under Government Order No.
Works/772-871/(HEB)/89 dated 02-02-1989 shall, on the commencement of the Act
and immediately after establishment of the Organization, stand wound up and all
assets and liabilities of Hydro Electric Board shall also stand transferred to
the Organization established under the Act.
(2)
All officers and other employees of the said Hydro Electric Board shall, from
the commencement of the Act, be the Officers and employees of the Organization
established under the Act on the same terms and conditions as applicable to
them, before the commencement of the Act.
13. Control over power houses, grids
and transmission lines.-
(1) Subject to the provisions of any other law for the time being in force, the
Organization,---
i)
shall have control over the operation of all power houses, grids, micro grids
and transmission lines connected with the power houses in the Azad Jammu
and Kashmir constructed by or transferred to the Organization, including such
ancillary works as may be considered necessary for their proper operation;
ii)
may make recommendations to the Government for prescribing standards for the
maintenance of power houses, grids, micro-grids and transmission lines of the
Organization;
iii)
may make recommendations to the Government for proper utilization of power
generated through power houses; and
iv)
shall be deemed to be the designee of the Government for the purpose of
the complexes designed, insured, financed, acquired, constructed, completed,
and commissioned in private sector and transferred to Government or acquired by
the Government, under Concession Agreements.
14. Organization to have
powers and obligations of licensee under Electricity Act, 1910.- TheOrganization shall, for the purposes of
the Electricity Act, 1910 (Act IX of 1910), as enforced in Azad Jammu and
Kashmir be deemed to be a licensee and shall have all the powers and
discharge all the obligations of a licensee under the said Act.
15. Power regarding
certain matters.-(1)
The Organization may take such measures and exercise such powers as it
considers necessary or expedient for carrying out the purposes of the
Ordinance.
(2)
Without prejudice to the generality of the powers conferred by the preceding
Sections and the provisions of sub-section (1), the Organization may, in the
prescribed manner and subject to the provisions of the Ordinance,---
a) undertake
any work, incur any expenditure,
procure plant, machinery and materials required for its use and enter
into and perform all such contracts as it may consider necessary or
expedient to carry out the purposes of the Ordinance;
b) acquire
by purchase, lease, exchange or otherwise and dispose of by sale, lease, exchange
or otherwise, any land or any interest in land;
c) place
wires, poles, wall brackets, stays, apparatus and appliances for the
transmission of electricity or for the transmission of telegraphic or
telephone communications necessary for the proper execution of a scheme;
d) undertake
any anti-corrosion operations;
e) restrict
or prohibit by general or special order the clearing and breaking up of land in
the catchment area of any river;
f) seek
and obtain advice and assistance in the preparation or execution
of a scheme from any local body or agency of the Government, and such local
body or agency shall give the advice and assistance so sought to the best of
its ability, knowledge and judgment;
g) shall
provide one window facilitation for implementation of projects in private
sector and shall issue the LOI and LOS, prepare pre-qualification and bid
documents, prequalify the sponsors, evaluate the bids of pre-qualified
sponsors, assist the sponsors/project companies in seeking necessary
consents/permissions from various authorities in the negotiation, execution in
administration of the Implementation Agreement, Water Use Agreement through
various policies issued or adopted by the Government in this context. All NOCs
required for establishment of the project shall be routed through the
Organization;
h) manage
investment for Power projects and coordinate with the concerned
institutions of
(2)
The acquisition of any land or any interest in land for the Organization under
this Section or for any scheme under the Act shall be deemed to be an
acquisition for a public purpose within the meaning of the Land Acquisition
Act, 1894 (Act I of 1894), as enforced in Azad Jammu and Kashmir and the
provisions of the said Act shall apply to all such proceedings.
16. Right of entry.- The Managing Director or the Director
General Private Power Cell or any person authorized by them in writing may
enter upon and survey any land, erect pillars for the determination of intended
lines of works, make boring and excavations and do all such other acts which
may be necessary for the preparation of any scheme:---
Provided
that when the affected land does not vest in the Organization, the power
conferred by this sub-section shall be exercised in such manner as to cause the
least interference with, and the least damage to, the rights of the owner
thereof.
17. Sanction of Government.-A scheme made and sanctioned under the Act
may be amended or modified by the Organization at any time, provided if a
material change is made in the scheme and its cost or the revised cost exceeds
the sanctioning limit of the Organization, then sanction of the relevant forum
shall be obtained.
18. Arrangement with
local body or other agency.-(1)
As soon as any scheme has been carried out by the Organization or at a later
date, the Organization may arrange by a written agreement with a local body or
other agency within whose jurisdiction any particular area covered by the
scheme lies, to take over and maintain any of the works and services in that
area. If the Organization fails to obtain the assent of such local body or
other agency, it may refer the matter to the Government, and the Government may
give such directions to the local body or other agency as it may deem fit.
(2)
The Government shall have the power to direct the Organization to hand over any
scheme other than a power scheme or the part of a multipurpose scheme carried
out by it to any agency of the Government or a local body. In such a case the
Organization shall be entitled to receive audited total cost incurred on that
scheme.
CHAPTER IV
ESTABLISHMENT
19. Employment of
Officers and Servant-(1)
The Organization may from time to time employ directly or by induction,
transfer, deputation or by absorption from any Government department,
semi-autonomous and autonomous bodies, such officers and employees as it may
consider necessary for the efficient performance of its functions, on such terms
and conditions as it may deem fit:---
Provided
that the terms and conditions of service of any such person shall not be varied
by the Organization to his dis-advantage.
(2)
Appointment and promotions of officers and employees shall be made by the
competent authority under the service rules of the Organization as may be
prescribed.
20. Immunity.- (1) The Chairman, Vice-Chairman, Members,
Managing Director, Director General, Officers and employees of the Board or the
Organization shall, when acting or purporting to act in pursuance of any of the
provisions of the Act, be deemed to be public servants within the meaning of
Section 21 of the Azad Penal Code,1860 (Act XLV of 1860).
(2)
No suit, prosecution or other legal proceedings shall lie against the Chairman,
Vice-Chairman, Managing Director, Director General, members or officers and
employees in respect of anything done or intended to be done, in good faith
under the Act.
21. Delegation of
Powers.-The Board
may, by general or special order delegate to the Chairman, Vice-Chairman,
Member, Managing Director, Director General, of the Organization any of its
powers, duties or functions under the Act subject to such conditions as it may
deem fit.
CHAPTER V
REPORTS AND STATEMENTS
22. Submission of
yearly reports and returns etc.-(1) The Organization shall submit to the Assembly, as soon as
possible after the end of every financial year but before the last day of
October next following, a report on the conduct of the affairs of the
Organization for the year including an analysis of its physical activities and
financial achievements.
(2)
The Assembly may require the Organization to furnish it with,-
(i)
any return, statement,
estimate, statistics or other
information regarding any matter under the control of the Organization; or
(ii)
a report on any such matter; or
(iii)
a copy of any document in custody of the Organization and the
Organization shall comply with such requisition.
CHAPTER VI
FINANCE
23. Fund.-(1) There shall be a fund to be known as the
Fund of the Organization vested in the Organization which shall be utilized with
the approval of Board to meet charges in connection with its functions under
the Act, including the payment of salaries and other remunerations to the
Managing Director, Officers and employees of the Organization.
(2)
The fund shall consist of,---
(a) grants
made by the Government including the Federal Government;
(b) loans
obtained from the Government including the Federal government;
(c) grants
made by local bodies as required by the Government;
(d) sale
proceeds of bonds issued under the authority of the Government;
(e) loans
obtained by the Organization from commercial banks or any other source;
(f)
foreign loans, grants or any other financial assistance obtained; and
(g)
revenue through sale of power generated, water use charges, other than Mangla
Dam and all other sums received by the Organization.
(3) The
Organization may keep money in any scheduled bank or the Bank of Azad Jammu and
(4) Nothing
in sub-section (3) shall be deemed to preclude the Organization from
investing any such moneys which are
not required for immediate expenditure in any of the
securities described in Section 20 of the Trusts Act, 1882 (Act II of 1882), as
adapted in Azad Jammu and Kashmir or placing them in a fixed deposit with a
scheduled bank or the Bank of Azad Jammu and Kashmir or a National Saving
Centre with the approval of the Board.
(5) The
Board shall endeavor to promote private sector in the generation, transmission
and distribution of Power. For this purpose it may sponsor, promote or join
private limited Companies incorporated and established under the Companies Act,
1984 (XLVII of 1984), as enforced in Azad Jammu and Kashmir.
(6) The
Board may also permit the Organization to join, promote, sponsor or incorporate
public limited Companies involved in the generation, transmission and
distribution of power.
(7) To
join other statutory or corporate bodies, involved in the generation,
transmission and distribution of power.
24. The Organization to be deemed a Local authority.- The Organization shall be deemed to be a
local authority under the Local Authorities Loans Act, 1914 (Act IX of 1914),
as enforced in Azad Jammu and Kashmir for the purposes of borrowing money under
the said Act, and the making and execution of any scheme under the Act shall be
deemed to be a work which such authority is legally authorized to carry out.
25. Limited Liability.-The liability of the Government to the
creditors of the Organization shall be limited to the extent of grants made by
and the loans raised by the Organization with the sanction of the Government.
26. Rates of sale of Power.- The rates at which the Organization may
sell power shall be so fixed as to provide for meeting the operation costs,
investment cost and depreciation of assets, the redemption at due time of loans
other than those covered by depreciation, the payment of any taxes and
reasonable return on investment or the rates approved by the Government or by
adopting, subject to approval of the Board.
27. Maintenance of
Accounts.- The
Organization shall maintain complete and accurate books of accounts in such
form as may be prescribed:---
Provided
that separate accounts shall be maintained for all schemes transactions
relating to Power.
28.Annual Statement of Account.-In the month of July each year, the Organization
shall submit to the Government for approval of the statement of the estimated
rupees and expenditure in respect of the next financial year.
29. Audit.- (1) The accounts of the Organization shall
be audited by Local Funds Audit of the Finance Department of the Government.
(2)
Notwithstanding the provisions of sub-section (1), the Auditor General Azad
CHAPTER VII
RULES AND REGULATIONS
30. Rules and Regulations.- For the purpose of caring into effect the
provisions of the Act, the Organization may, with the approval of the
Government, frame Rules and Regulation as it may consider necessary or
expedient.
31. Repeal.- The Power Development Organization
Ordinance, 2014 (Ordinance XII of 2014) is hereby repealed.
-sd-
(Sardar Rashid Kaleem)
Deputy Secretary Law
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