General
principles
for Board's
finance.

















  
Board to
assume
obligations
of State
Government
in respect
of matters
to which
this Act
applies.

 CHAPTER VI

The Board’s Finance, Accounts and Audit

     ¹[59. (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 meting all expenses properly chargeable to revenues, including operating, maintenance and management expenses, taxes (if any) on income and profit, depreciation and interest payable on all debentures, bonds and loans, leave such surplus, as the State Government may, from time to time, specify.

(2) In specifying the surplus 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 of contribute towards the cost of capital works; and

(b) where in respect of the Board, a notification has been issued under subsection  (1) of section12A, a reasonable sum by way of return on 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.]

 60. (1) AH 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.

²[(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.]

92) All expenditure which the State Government may, not later than ³[one year] after the first constitution of the Board, declare to have been incurred ⁴* * * 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.