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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. 71] NEW DELHI, TUESDAY, MARCH 25, 1975/CHAITRA 4, 1897

Separate pairing is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF PETROLEUM AND CHEMICALS

(Department of Petroleum)

NOTIFICATION

New Delhi, the 22nd March 1975

OIL INDUSTRY (DEVELOPMENT) RULES, 1975

G.S.R. 160(E).—In exercise of the powers conferred by section 31 of the Oil Industry (Development) Act, 1974, the Central Government hereby makes the following rules, namely:—

CHAPTER I

PRELIMINARY

1. Short title.—These rules may be called Oil Industry (Development) Rules, 1975.

2. Definitions.—In these rules unless the context otherwise requires—

(a) "Act" means the Oil Industry (Development) Act. 1974 (47 of 1974); (b) "Committee" means any of the "Committees appointed by the Board under sub-section (6) of section 3;

(c) Officer of the Board includes the Secretary, Joint Secretary, Deputy Secretary or Under Secretary of the Board and such other person as may be designated by the Board;

( 6 1 7)

(d) "Secretary" means the Secretary to the Board appointed under Sub- section (1) of section 5;

(e) "Section" means a section of the Act.

CHAPTER n

THE BOARD AND ITS COMMITTEES

3. Terms of office of members—(1) Every member shall hold office lor such period not exceeding two years from the date of his appointment as may be specified in the notification appointing him and shall be eligible for reappoint. ment:

Provided that a member appointed under clause (a), (b), (c) or (d) of sub- section (3) of section 3 shall cease to be a member if he ceases—

(i) to hold office by virtue of which he was appointed; or (II) to represent the category from which he was appointed.

(2) A member appointed to fill a casual vacancy shall hold office so long as the member whose place he fills would have been entitled to hold office if the vacancy had not occurred.

4. Membership roll.—The Secretary shall keep a record oil the names of mem- bers and their addresses.

5. Change of address.—(1) A member shall keep the Secretary informed of any change in his address.

(2) If he falls to Inform the change of address, the address in the official records shall for all purposes be deemed to be his address.

6. Resignation. (1) A member may resign his office by a letter addressed to the Secretary and the resignation shall be forwarded by the Secretary to the Central Government and shall be effective from the date of Its acceptance by the Central Government or on the expiry of 30 days from the date of receipt of the letter of resignation by the Secretary, whichever is earlier.

(2) A member of a Committee may resign from the Committee by a letter addressed to the Secretary and shall be effective from the date of its acceptance by the Chairman or on the expiry of 30 days from the date of receipt of the letter of resignation byq the Secretary, whichever is earlier.

7. Removal of members.—The Central Government may. by notification in the Official Gazette, remove any member tfom his office, if he—

(a) is of unsound mind and stands so declared by a competent court, or (b) becomes bankrupt or insolvent or suspends payment of his debts or compounds with his creditors, or

(c) is convicted of an offence involving moral turpitude, or (d) absents himself from two consecutive meetings of the Board without obtaining leave of absence from the Board, or

(e) defaults In payment of any dues to the Board, and if so declared by the Board, or

(f) in the opinion of the Central Government, has failed or is unable to carry out his duties satisfactorily:

Provided that before issuing any such notification the Central Government shall give such member an opportunity of being heard in the matter.

8. Temporary absence of Chairman.—If the Chairman is by infirmity or other- wise rendered incapable of carrying out his dutieE or is absent on leave or other- wise in circumstances not involving the vacation of his appointment, the Central Government may appoint another person to act in his place during his absence.

CHAPTER HI

PROCEDURE FOR MEETINGS OF THE BOARD AND ITS COMMITTEES

9. Meeting of the Board.—There shall be not less than two meetings of the Board in a year on such dates and at such places as the Chairman may think fit, and the Interval between any two meetings shall not, in any case, be longer than eight months.

10. Presiding over meetings.—(1) At every meeting of the Board at which he ^ is present the Chairman shall preside and in the absence of the Chairman, the member so designated by the Chairman shall preside or if no member has been so designated the members present at the meeting shall elect one from among themselves to preside at the meeting.

(2) The Chairman if he be a member of a Committee or if he be present at s mr-ttin- of a Committee shall preside over the meeting of the Committee and i:\ ether "cases unless the Chairman of a Committee is nominated by the Board, the Cc.r.mittce may elect a Chairman, but it at any meeting the Chairman is not present within fifteen minutes of the time of meeting the members present may choose one of the members to be the Chairman of the meeting,

(•3) The proceedings of the meetings of any of the Committee appointed under sub-section (6) of section 3 shall be placed before the Board at the Board's next meeting.

11. Power to call meetlnKs.—(1) The Chairman may, at any time, call a meet- ing of the Board or of any of the Committees and shall do so if a requisition for a meeting is presented to him in writing by at least half the total number of members of the Board or the Committee, as the case may be. ,

(2) The Chairman may require any officer of the Board or Invite any person or persons to attend any meeting of the Board or of any of" the Committees, but such officer or person or persons shall not have the power to vote.

(3) At least seven clear days before any meeting of the Board and at least three clear days before a meeting of any of the Committees, notice of the time and place of the intended meeting signed by the Secretary shall be sent to the Central Government and left at or poate'd to the address of every member of the Board or, as the case may be, of the Committee:

Provided that in case of urgency, a special meeting of the Board or of any of the Committees may be summoned at any time by the Chairman, who shall inform in advance, the Central Government and the members, of the subject matter for discussion and the reasons for which he considers the summoning of such meeting urgent. No ordinary business sh'all be transacted at such special meetings.

(4) Notwithstanding anything contained in this rule, the Central Government may also at any time, call a meeting of the Board or of a Committee.

12. Quorum.—(1) No business shall be transacted at a meeting of the Board unless there are nrcsent at least one third of its total strength of members or three members whichever Is higher and no business shall be transacted at a meeting of a Committee unless there are present a majority of the members con- stituting the Committee.

(2) If at any time the number of members present in a meeting of the Board or of any of the Committee ig less than the required auorum, the person presiding shall ediourn the mectinc to n. date not later than three days from the date of the meeting, informing the members present and sending notice to other members of the date, time and nlace of the adjourned meeting-, and if the number of members present at such n.diourned meeting is less than the required quorum, the members so present shall be the quorum.

IS. Absence from meetings of a Committee.—Any member of a Committee absenting himself from two consequtive- meetings of such Committee without the leave of the Chairman, and in any case, from three consecutive meetings,- shall cease to be a member of that Committee,

14. Filling of casual vacancies.--(n Any casual vacancy in the membership of a Committee shall be filled by the Chairman from amongst the members of the Board.

(2) A person appointed In a casual vacancy shall hold office for so long as the member whose place he fills would have been entitled to hold office, if the vacancy had not occurred.

15. Apenda.—(1) The Chairman shall except in the case of a special meeting summoned under the proviso to sub-rule (3) of rule 11, cause to be prepared and circulated to the Central Government and amon,g the members of the Board or any of the Committees at least two days before the meeting, a list of business to be transacted at that meeting.

(2) No business not included in the list of business so circulated shall be transacted without the permission of the Chairman.

16. Business by circulation.— (1) Any business which is to be transacted by the Board or a Committee may, if the Chairman so directs, be referred to members (other than members who are absent from India) by circulation of paperg and copies of all papers so circulated shall be sent to the Central Government.

(2) Any proposal or resolution circulated under sub-rule (1) and approved by the majority of members who have recorded their views in writing shall be as effectual and binding as if such proposal .or resolution were decided by the majority of the members at a meeting:

Provided that a majority of the members of the Board or of the Committee, as the case may be, have recorded their own views on the proposal or resolution.

(3) When any business: is referred to members of the Board or of the Com- mittee, as the case may be, by circulation, a period of not less than fourteen clear days shall be allowed for receipt of replies from members. Such period shall be reckoned from the date on which the notice of business is issued.

(4) Tf a proposal or resolution is circulated, the result of the circulation shall be communicated to all the members of the Board or of the Committee concerned, as the case may be, and to the Central Government.

(5) All decisions on a question arrived at by circulation of papers shall be placed tit the next meeting of the Board for record.

17. Record of business.—XI) A record shall be maintained by the Secretary of all items of business transacted by the Board or by the Committee and copies of such record shall be forwarded to the Central Government,

(2) The record of business transacted at every meeting of the Board and of any of the Committee shall be signed by the Chairman or the member presiding at such meeting.

(3) When business is transacted by circulation of papers, a record of business so transacted shall be signed by the Chairman.

18. Voting-.—(1) Every question brought before any meeting of the Board or any of the Committees shall be decided by a majority of members present and voting at the meeting before which the matter is brought.

(2) In the case of an equality of votes, the Chairman or the member presiding over the meeting shall have a second or casting vote.

19. Revision.—(1) The Central Government may for reasons to be recorded In writing, review any, decision of the Board, or any of the Committees and pass Buch order in the matter as It thinks fit.

(2) A copy of every order passed under sub-rule (1) shall be sent to the Board or the Committee concerned, as the case may be, by the Central Government.

(3) On receipt of a copy of the order as aforesaid the Board or the Com- mittee concerned, as the case may be, may make a representation to the Central Government against the said, order and the Central Government may after con- sidering the representation, either cancel, modify or confirm the order passed by It under sub-rule (1), or take such other action in respect of the matter as may. In the opinion of the Central Government, be just or expedient, having regard to all the circumstances of the case.

CHAPTER IV

TRAVELLING AND OTHER ALLOWANCES TO MEMBERS OF THE BOARD AND COMMITTEES

20. Sitting fees and travelling allowances to members of the Board and Its Committees.—(1) A member appointed under clause (d) of sub-section (3) of section 3, and t^e Chairman, if he is not a Minister or a Government servant or an employee of a Corporation owned or controlled by the Central Government, shall be entitled to a sitting fee of Rs, 100 for the fitrst day of meeting attended by him either of the Board or of any of the Committee and for every subsequent day of the meeting or part thereof, a sitting fee of Rs. 50 per day shall be payable:

Provided that where any such member attends on the sam<3 day a meeting of the Board or a meeting of the Committee, he shall be entitled only to the sitting fee of the meeting of the Board.

(2) A member other than a Government servant or an employee of a Corpo- ration owned or controlled by the Central Government shall be entitledt o draw, in respect of any journey performed by him for the purpose of attending a meeting of the Board or of a Committee or for the purpose of discharging any duty assigned to him by the Board or the Committee concerned, travelling allow- ance and daily allowance at the highest rates admissible to Government servants of the first grade under the rules and orders made by the Central Government and for the time being in force.

(3) In the case of any journey performed by an official of the Central Gov- ernment or an employee of a Corporation owned or controlled by the Central Government, in connection with attending the meetings of the Board or of any Committee or to attend to any other business of the Board, the travelling and daily allowances admissible to him shall be payable bv the Board at the rates admissible to him under the rules of the Government or the Corporation under which he is for the time being employed.

CHAPTER V

THE BOARD AND ITS ESTABLISHMENT

21. Salaries and Allowances.—All expenditure on account of the salaries allowances, pension', leave salary and other contributions if any, of the Chairman' Secretary, Officers, Consultants and employees of the Board appointed under the Act shall be met from the Board's funds.

22. Abolition of posts.—The Board may abolish any post which it is competent to create.

23. Postings and transfers.—Posting arid transfers of all officers and employees of the Board shall be made by the Chairman or such officer of the Board as may be authorised by the Board in this behalf.

CHAPTER VI

POWERS OF THE BOARD, THE CHAIRMAN AND THE SECRETARY

24. Power to Incur expenditure and to write off losses.—(1) Subject to the provisions of the Act and these rules, the Board may incur such expenditure as it may think fit on items provided for and within the amounts sanctioned:

Provided that prior approval of the Central Government shall be obtained before—

(i) the Board invests any funds in the equity capital of any Company or organisation, or

(il) the Board makes a grant of more than Rs. 25 lakhs in a single case.

(2) The Board may write off losses or waive recoveries upto Rs 25 lakhs in each case. Write off of losses or waiver of recoveries beyond this amount shall be done with the prior approval of the Central Government.

(3) The Secretary of the Board may write off losses upto Rs, 2000 in each case.

(4) The Board may delegate the powers under sub-rule (1) to the Chairman or its officers, subject to such limits as may be laid down by It in this behalf.

(5) Reappropriations between sub-heads under heads of expenditure may be made by the Board,

(6) The Board may. however, delegate its powers under sub-rule (5) to the Chairman or the Secretary to such extent as it may deem fit.

25. Contracts.—(1) The Board may enter Into any contract for the discharge of the duties entrusted to it under the Act:

Provided that every agreement or contract for technical collaboration' or con- sultation services with firms or foreign Governments involving expenditures in foreign exchange shall require the previous sanction of the Central Government,

(2) The Board may delegate to the Chairman or t0 the Secretary or to a member, the power to enter into contract on its behalf to such extent as it deems flt.

(3) Contracts shall not be binding on the Board unless they are executed by the Chairman, a member or any officer of the Board so authorised by the Board,

(4) Neither the Chairman nor any officer of the Board nor any member there- of shall be personally liable under any assurances or contracts made by the Board and any liability arising under such assurances or contract shall be dis- charged from the moneys at the disposal of the Board.

23, Restriction on Delegation of Powers,—The Board shall have power to dele- gate to a Committee such powers as it deems flt but such power shall not have the following namely:—

(a) the power to sanction non-recurring expenditure in excess of Rs. 1 lakh

in a year on any single item;

(b) the power to adopt the budget estimates of the Board on its behalf;

(c) the power to write off losses or waive recoveries.

27, Borrowing Powers.—The Board may borrow, on the security of the Oil Industry (Development) Fund or any of its other assets, for meeting its expenses or for any other purposes referred to in the Act:

Provided that Central Government's sanction shall be obtained for borrowing beyond Rs. 5 crores at a time.

28. Powers and duties of Chairman,—(1) The Chairman shall be responsible for the proper functioning of the Board and the discharge of its duties under the Act and these rules,

(2) The Chairman shall have the power to grant leave to all officers and employees.

(3) The Chairman shall exercise administrative control over all departments and officers of the Board including the Seoretary.

(4) The Chairman shall have power,

(i) to call for documents and records and to inspect or cause to be Ins- pected, accounts and places of storage or of business as required under the Act or these rulea.

(ii> to sanction expenditure for contingencies, supplies and services and purchase of articles required for the working of the office of the Board and for the execution of measures in furtherance of the SEC. 3(i)] THE GAZETTE OF INDIA EXTRAORDINARY 623

i (5) The Board may. de^gate anv of the powers of the Chairman under this rule to any officer of the Board or to the member appointed under clause (a) ol sub-section (3) of section 3.

(6) The Chairman presiding nt a meeting of the Board or any Committee shall have the power to require the Board or the Committee concerned to defer tak- ing action in pursuance of any decision taken by the Board or Committee con- cerned, as the case may be, pending a reference to the Central Government on such decision.

(7) The member presiding at a meeting of the Board or any Committee shall have the power to require the Board or the Committee concerned to defer tak- ing action in pursuance of any decision' taken by the Board or the Committee concerned, as the case may be. pending a reference to the Chairman on such decisions and such references shall be decided by the Chairman in accordance with sub-rule (1).

(8) Where a matter has to be disposed of by the Bn-srd or a Committee there- of and decision in respect of that matter cannot wait till a meeting of the Board or the Committee, as the case may be, is held or till completion of circulation of the relevant papers among the member of the Board or the Committee, the Chairman may take the required decisions himself.

(9) Where the Chairman takes such a decision, the shall submit the same for ratification by the Board or the Committee, as the case rnay be, provided that if the Board or the Committee modifies or annuls the decision taken by the Chair- man, such modification of annulment shall be without prejudice to the validity of any action taken previously as a result of that decision.

29. Powers and duties of Secretary.— (1) The Secretary shall be responsible for the implementation of the decisions arrived at by the Board or by the Com- mittee and the discharge of the duties imposed on him under the Act or by these rules.

(2) The Secretary shall—

(a) cause all important papers, and matters to be presented to the Board

as early as practicable;

(b) issue directions as to the method of carrying out the decisions of the

Board;

(c) grant, or, subject to the resolution by the Board, authorise some other person to grant, receipts on behalf of the Board for all moneys re- ceived under the Act;

(d) maintain or cause to be maintained an account of the receipt a id

expenditure of the Board; and

(e) present an annual draft report on the working of the Board to 'l''' Board for approval and submit the report in the form approved by the Board to the Central Government not later than the dates speci- fied from time lo time in this behalf by the Central Government for being laid on' the Table of both Houses of Parliament.

CHAPTER Vn

FINANCE, BUDGET AND ACCOUNTS OF THE BOARD

30. Budget Estimates,—(1) The Board shall in each year, the year being of 12 months from April to March, prepare a budget for Oil Industry Development Fund for the ensuing year and discuss It in JI meeting of the Board as an item of the agenda and shall thereafter submit it for approval of the Central Govern- ment on or before such date as may be appointed by that Government,

(2) No expenditure shall be incurred until the budget is approved by the Central Government.

(3) The budget shall be prepared in accordance with such instructions ^a may be issued from time to time and be In such form as the Central Govern- ment may direct and shall include a statement of—

(i) the estimated opening balance,

(ii) the estimated receipts referred to in sub-section (1) of section 18 arid from other sources, and

(iii) The estimated expenditure classified under heads and sub-heads as ' specified in Schedule I to these rules,

(iv) estimated closing balance.

(4) Supplementary estimates of expenditure, if any, shall be submitted for the approval of the Central Government in such form and on such dates as may be directed by it in this behalf.

31. Accounts of Board.—(1) The Board shall, in respect of each financial year prepare annual statements of accounts as sp'ecified In Schedules II, III and IV to these rules or as near to them as possible.

(2*) The Board shall keep proper books of accounts including a journal and Ledger with reference to—

(a) all sums or money received and expended by the Board and the tran-

sactions in respect of which the receipt and expenditure take place;

(b) all sales and purchases of goods by the Board;

(c) the assets and liabilities of the Board;

' (d) detailed subsidiary records showing particulars of—

(i) disbursement and recoveries of loans and advance^ bv it in pursu- ance of the provisions of the Act;

(ii) all guarantees given by it; (iii) investments made by it in pursuance of or under-writing obligations

or otherwise.

32. Deposits of funds in Banks and Investment of such funds¹.—(1) The Board may decide about the manner and place of deposit of funds, provided that the deposit shall be made in any of tV following banks as may be decided by the Board, namely,

(a) The State Bank of India or any of Its subsidiary banks;

Ob) The nationalised banks.

(2) The Board may decide about matters connected with the manner of expenditure and about the operations of its bank accounts, deposits, including Investments,

33. Submission of Information required by the Government.—The Board shall submit such Information as the Central Government may require from time to time in respect of any business of the Board.

34. Furnishing of information to financial institutions—The Board may, on a written request from any financial institution established for the purpose of making short, medium and long-term credits available to industrial concerns, furnish to that financial institution any information relating to the business or affairs of the Board only in' circumstances in which it is, in accordance with law or practice and usage customary among such financial institutions, necessary or appropriate for the Board to divulge such information.

35. Head office of the Board.—The Head office of the Board shall be at New Delhi or at such other place as the Central Government may, from time to time, direct.

SCHEDULE I

OIL INDUSTRY DEVELOPMENT BOARD

[Rule 30 (3) (iii)]

Heads of Expenditure

Heads

Sub-head

"I. Administration

(i) Expenses of the Board (ii) Office of the Board

(iii) Other charg-Sj contingencies and the

like

II. Research and Development

(i) Special projects and studies (ii) Training (iii) Fellowships and F.cholanhipf

III. Assistance to Oil Industry

(i) Exploration (") Production (iii) Refining (iv) Petrochemicals

SCHEDULE II

OIL INDUSTRY DEVELOPMENT BOARD

[Rule 31 CO]

Receipts and PaymMis, Account for the year

PAYMENTS RECEIPTS

Sub-head

I. OPENING BALANCE

II. RECEIPTS i

I. Alministration

CO Amounts receipt from Central Government under section 16 of the Act

[ CO Expenses of the Board "(ii') Office of the Board C"iO Other charges, con- tingencies, and the like-

(ii) Amounts received from Central Government under section 17 of the Act

(.Hi) L^ans from Central Govornm:nt II. Research and _De-

undser section 17 of the Act- velopemejit CO Special projegts^and

. studies

(i'y) Bjrrowiag Cin Seating sources of

(it) Training (Hi) Fellowships ftnd receipt) <\

scholarships

(v) Grants , /rom other persons /insti-

tutions HI. Assistance to oil

industry

C^O Fees 1 Caw) Commission (viii) Interest receipts

(a) Loans CO Exploration ("') Production (Hi) Refining (iv) Petrochemicals

(ix) Other receipts Cundcr suitable

gub-headingO Cb) Grants

CO Exploration C"0 Production C""0 Refining 1 (iv) Petrochemicals

IV. Closing Balance

M Q TE • — S u i t a b le s u b s i d i a ry r e c o r ds to be k e pt i n d i c a t i ng t he e x p e n d i t u re . u n d er v a r i o us aub-heais under convenient detailed classification.

SCHEDULE III

OIL INDUSTRY DEVELOPMENT BOARD

[Rule 31 CO]

Income and Expenditure Account for the year

INCOME

EXPENDITURE

Particular.¹! C'lrcent Year

Current Year

Previous Particulars Year

Previous Year

1. Saks Income

1. Administration and!

establishment costs

2. Interest receivable on

2. Research and Develop-

financing

ment cosis

3. Fees and Commission

3. Financing costs

4. Dividends on share-

4. S'.i');ilies aid grants

holdings \

5. Sundry and special

5. Taxes

receipts

6. Deficit if any trans-

6. Amortization and de-

preciation

ferred to Fund Ac- count,

7. Sundry and special

expenses.

8. Surplus, if any, trans- ferred to Fund Ac- count.

SCHEDULE IV

OIL INDUSTRY DEVELOPMENT BOARD

[Rule 31 d )]

Balance Sheet as on Jist March

LIABILITIES

ASSETS

Previous

Current

Year Particulars Previous jYear

Current Year Particulars Year fl

1. Fixed Assets i. Oil Industry Develop- ment Fund Balance as per last balance sheet

2. Investments—

•Add .surplus—

(i) in shares and

(") in debenture?

Excess of Income over Ex- penditure for the year transferred from In- come and Expenditure

3. Loans and advances ¹⁷ Account ——

Less Deficit—

4. Other current assets

5, Ca"h and bank balance Excess of Expenditure over Income for the year transferred from In- cim* and Expenditure Account

— 6. Miscellaneous expen- penditure (ro the- rx- tent r01 written offer adjusted)

2. Reserve Fund

3. Loans aid Bonds

4. Short-term debts

5, S'indry liabilities and

provision

*D:lete whichever is not applicable.

[No. IS-12011/11/74-ONG. II.]

C. H. VAIDYANATHAN, Jt. Secy.

•HBm/tftt)] frHBOAaBBITS0rB^lMAi"XI!RJtORDINAHY "4o/i

PRINTED BY THE MANAGER, GOVERNMENT OF INDIA PREBg MINTO ROAD. NEW

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