TECHNOLOGY DEVELOPMENT BOARD ACT 1995

THE TECHNOLOGY DEVELOPMENT BOARD ACT, 1995

ACT No. 44 OF 1995

16thDecember, 1995

An Act to provide for the constitution of a Board for payment ofequity capital or any other financial assistance to industrial concerns andother agencies attempting development and commercial application of indigenoustechnology or adapting imported technology to wider domestic applications andfor matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Forty–sixthYear of the Republicof India as follows: –

CHAPTER I

PRELIMINARY

1.Short title and commencement:(1) This Act may be called theTechnology Development Board Act, 1995.

(2) It shall come into force onsuch date as the Central Government may, by notification in the Official Gazette,appoint.

2.Definitions:In this Act, unless the contextotherwise requires–

(a) "Board" means theTechnology Development Board constituted under sub–section (1) ofsection 3;

(b) "Chairperson"means the Chairperson of the Board;

(c) "Fund" means theFund for Technology Development andApplication constituted under sub–section (1) of section 9;

(d) "member" means amember of the Board and includes the Chairperson;

(e) "prescribed"means prescribed by rules made under this Act;

(f) "Secretary" meansthe Secretary of the Board appointed under sub–section (1) of section 4;

(g) words and expressions usedherein and not defined but defined in the Research and Development Cess Act,1986,(32 of 1986) shall have the meanings respectively assigned to them in thatAct.

CHAPTER II

TECHNOLOGY DEVELOPMENT BOARD

3.Constitution andincorporation of the Board:(1) The Central Government shall by notification in the OfficialGazette, constitute, for the purpose of this Act, a Board to be called theTechnology Development Board.

(2) The Board shall be a bodycorporate by the name aforesaid having perpetual succession and a common sealwith power, subject to the provisions of this Act, to contract and shall, bythe said name, sue and be sued.

(3) The Board shall consist of the following members, namely: –

(a) the Secretary to the Government of Indiaincharge of the

Ministry or Department of the Central Governmentdealing with Science

and Technology exofficio;Chairperson;

 

(b) the Secretary to the Government of Indiaincharge of the Ministry

or Department of the Central Government dealing withScientific and

Industrial Research exofficio;

 

(c) the Secretary to the Government of Indiaincharge of the Ministry

or Department of the Central Government dealing with Finance (Expenditure) ex officio;

 

(d) the Secretary to the Government of Indiaincharge of the Ministry of

Department of the Central Government dealing withdefence Research

andDevelopment exofficio;

 

(e) the Secretary to the Government of Indiaincharge of the Ministry of

Department of the Central Government dealing withIndustrial Development exofficio;

 

(f) the Secretary to the Government of Indiaincharge of the Ministry of

Department of the Central Government dealing withRural Development exofficio;

 

(g) such number of persons, not exceeding four asmay be prescribed, to

be appointed by the central Government from amongstpersons having

experience in technology development andapplication, banking and finance,

industry, agriculture and rural development; and exofficio;

 

(h) Secretary of the Board exofficio;

(4) The term of office andother conditions of service of members specified in clause (g) of sub–section(3) shall be such as may be prescribed.

(5) The Chairperson shall, inaddition to presiding over the meetings of the Board, exercise and dischargesuch powers and duties of the Board as may be delegated to him by the Board andsuch other powers and duties as may be prescribed.

(6) No act or proceeding of theBoard shall be invalidated merely by reason of–

(a) any vacancy in, or anydefect in the constitution of, the Board; (b) any defect in the appointment ofa person acting as a member of the Board;

(c) any irregularity in theprocedure of the Board not affecting the merits of the case.

4.Secretary and other officersand employees of the Board:(1) The Board may appoint the Secretary and such other officersand employees as it considers necessaryfor the efficient discharge of its functions under this Act.

(2) The terms and conditions ofservice of the Secretary and other officer and employees of the Board shall besuch as may be determined by regulations.

5.Committees of the Board:(1) Subject to the rules madein this behalf, the Board may appoint such committees as may be necessary forthe efficient discharge of its duties and performance of its functions underthis Act.

(2) The Board shall have thepower to co–opt as members of any committee appointed under sub–section(1), such number of persons who are not members of the Board as it may thinkfit, and the persons so co–optedshall have the right to attend the meetings of the committee, and take part inthe proceedings of the committee, but shall not have the right to vote.

6.Fractions of the Board: The Board may–

(a) provide equity capital,subject to such conditions as may be determined by regulations, or any otherfinancial assistance to industrial concerns and other agencies attemptingcommercial application of indigenoustechnology or adapting imported technology of wider domestic applications;

(b) provide financialassistance to such research and development institutions engaged in developingindigenous

technology or adaptation ofimported technology for commercial application, as may be recognised by theCentral Government.

(c) perform such otherfunctions as may be entrusted to it by the Central Government.

CHAPTER III

APPLICATION FOR GRANT OF FINANCIAL ASSISTANCE

7.Application for grant offinancial assistance, etc.:(1) An application for grant of financial assistance for thepurposes mentioned under section 6 shall be made to the Board in such form asmay be prescribed.

(2) The Board may, afterexamining the application and after making such enquiries as it deems necessaryby order in writing, either grant the financial assistance or refuse to grantthe same:

Provided that no refusal ofgrant shall be made unless an opportunity is given to the applicant of beingheard.

CHAPTER IV

FINANCE, ACCOUNTS AND AUDIT

8.Grants and loans by theCentral Government: The Central Government may, after due appropriation made byParliament by law, in this behalf, make to the Board grants and loans of suchsums of money as that Government may consider necessary.

9.Fund for Technology Developmentand Application:(1) Theshall be constituted a Fund to be called the Fund for Technology Developmentand Application and there shall be credited to the Fund–

(a) any grants and loans madeto the Board by the Central Government under section 8;

(b) all sums received by theBoard from any other source;

(c) recoveries made of theamounts granted from the Fund; and

(d) any income from investmentof the amount of the Fund.

(2) The Fund shall be appliedfor meeting–

(a) expenses on the object andfor the purposes authorised by this Act;

(b) salaries, allowances andother expenses of officers and other employees of the Board; and

(c) expenses of the Board inthe discharge of its functions under this Act.

10.Transfer of money receiptsand liabilities: On andfrom the commencement of this Act, –

(a) the moneys standing at thecredit of the Venture Capital Fund formed under section 5 of the Research andDevelopment Cess Act, 1986 (32 of 1986) which is part of the DevelopmentAssistance Fund established by the Development Bank under section 14 of theIndustrial development Bank of India Act, 1964 (18 of 1964) shall standtransferred to and vest in the Board;

(b) all sums of money due tothe Development Bank immediately before such commencement shall be deemed to bedue to the Board;

(c) all debts, obligations andliabilities incurred, all contracts or agreements entered into and all mattersand things engaged to be done by, with or for the Development Bank immediatelybefore such commencement for or connection with the purpose of the VentureCapital Fund shall be deemed to have been incurred, entered into or engaged tobe done by, with or for the Board; and

(d) all suits and other regardproceedings instituted or which could have been instituted by or against theDevelopment Bank immediately before such commencement may be continued orinstituted by or against the Board.

11.Budget: The Board shall prepare, insuch form and at such time in each financial year, as may be prescribe, itsbudget for the next financial year, showing the estimated receipts andexpenditure of the Board sand forward the same to the Central Government.

12.Annual Report: The Board shall prepare, insuch form and at such time in each financial year, as may be prescribed, itsannual report, giving a full account of its activities during the previousfinancial year, and submit a copy thereof to the Central Government.

13.Accounts and audit:(1) The Board shall maintainproper accounts and other relevant records and prepare an annual statement ofaccounts in such form as may be prescribed by the Central Government inconsultation with the Comptroller and Auditor–General of India.

(2) The Comptroller and Auditor–Generalof India or any other person appointed by him in connection with the auditingof the accounts of the Board under this Act shall have the same rights andprivileges and the authority in connection with such audit as the Comptrollerand Auditor–General of India has in connection with the auditing of theGovernment accounts and, in particular, shall have the right to demand theproduction of books, accounts, connected vouchers and other documents andpapers and to inspect any of theofficers of the Board under this Act.

(3) The accounts of the Boardshall be audited by the comptroller and Auditor–General of Indiaannually and any expenditure incurred in connection with such audit shall bepayable by the Board to the Comptroller and Auditor–General of India.

(4) The Board shall furnish tothe Central Government before such date as may be prescribed its audited copyof accounts together with auditor’s report.

14.Annual report and auditorsreport to be laid before Parliament: The Central Government shall cause the annualreport and auditor’s report to be laid, as soon as may be after they arereceived, before each House of Parliament.

CHAPTER V

MISCELLANEOUS

15.Returns to be furnished tothe Board:(1) An industrial concern or aninstitution receiving financial assistance from the Board shall furnish returnsto the Board in such form and at such time as may be determined by regulations.

(2) The Board may authorise anofficer to visit any industrial concern or institution referred to in sub–section(1) at any time to verify the accuracy of any return made under this section.

16.Power of the CentralGovernment to issue direction:(1) Without prejudice to the foregoing provisions of this Act, theBoard shall, in the discharge of its functions and duties under this Act, bebound by such directions on questions of policy as the Central Government maygive in writing to it from time to time;

Provided that the Board shall,as far as practicable, be given an opportunity to express its views before bydirection is given under this sub–section.

(2) The decisions of theCentral Government whether a question is one of policy or not shall be final.

17.Power of Central Governmentto supersede the Board:(1) If at any time the Central Government is of opinion–

(a) that on account of graveemergency, the Board is unable to discharge the functions and the dutiesimposed on its by or under the provisions of this Act; or

(b) that the Board haspersistently made default in complying with any direction issued by he CentralGovernment under this Act or in the discharge of the functions and dutiesimposed on it by or under the provisions of this Act and as a result of suchdefault the financial position of the Board or the administration of the Boardthe deteriorated; or

(c) that circumstances existwhich render it necessary in the public interest so to do, the CentralGovernment may, be notification in the Official Gazette, supersede the Boardfor such period, not exceeding six months, as may be specified in thenotification.

(2) Upon the publication of anotification under sub–section (1) superseding the Board, –

(a) all the members shall, asfrom the date of supersession, vacate their offices as such;

(b) all the powers, functionsand duties which may, by or under the provisions of this Act, be exercised ordischarged by or on behalf of the Board shall, until the Board is reconstitutedunder sub–section (3), be exercised and discharged by such person orpersons as the Central Government may direct; and

(c) all property owned orcontrolled by the Board shall, until the Board is reconstituted under sub–section(3), vest in the Central Government.

(3) On the expiration of theperiod of supersession specified in the notification issued under sub–section(1), the Central Government may reconstitute the Board by a fresh appointmentand in such case any person or persons who vacated their offices under clause(a) of sub–section (2), shall not be deemed to be disqualified forappointment:

Provided that the CentralGovernment may, at any time, before the expiration of the period ofsupersession, take action under this sub–section.

(4) The Central Governmentshall cause a notification issued under sub–section (1) and a fullreport of any action taken under this section and circumstances leading to suchaction to be laid before each House of Parliament at the earliest.

18.Delegation: The Board may, by general orspecial order in writing, delegate to the Chairperson or any other member or toany officer of the Board. Subject to such conditions and limitations, if any,as may be specified in the order, such of its powers and functions under thisAct (except the power under section 22) as it may deem necessary.

19.Members officers andemployees of the Board to be public servants: All members, officer and other employees of theBoard shall be deemed, when acting or purporting to act in pursuance of theBoard shall be deemed, when acting or purporting to act pursuance of any of theprovisions of this Act, to be public servants within the meaning of section 21of the Indian Penal Code.(45 of 1860)

20.Protection of action takenin good faith: Noprosecution or other legal proceeding shall lie against the Government, or theBoard or any committee appointed by it or any member of the Board or suchcommittee, or any officer or employee of the Government or the Board or anyother person authorised by the Government or the Board, for anything which isin good faith done or intended to be done under this Act or the rules orregulations made thereunder.

21.Power of Central Governmentto make Rules:(1) TheCentral Government may, by notification in the Official Gazette, make rules tocarry out the provisions of this Act.

(2) Without prejudice to thegenerality of the forgoing power, such rules may provide for all or any of thefollowing matters, namely: –

(a) the number of members ofthe Board under clause (g) of sub–section (3) of section 3;

(b) the term of office andother conditions of service of the members of the Board, under sub–section(4) of section 3;

(c) the powers and duties ofthe Chairperson under sub–section (5) of section 3;

(d) the constitution ofcommittees under sub–section (1) of section 5;

(e) the form of applicationunder sub–section (1) of section 7;

(f) the form in which, and thetime at which the Board shall prepare its budget under section 11 and itsannual report under section 12;

(g) the form of annualstatement of accounts under sub–section (1) of section 13 and the datebefore which the audited copy of the accounts may be furnished to the CentralGovernment under sub–section (4) of that section;

(h) any other matter which isto be, or may be, prescribed or in respect of which provision is to be or maybe, made by rules.

22.Power of Board to makeregulations:1) TheBoard may, with the previous approval of the Central Government, by notificationin the Official Gazette, make regulations consistent with this Act and therules generally to carry out the provisions of this Act.

(2) In particular, and withoutprejudice to the generality of the fore going power, such regulations mayprovide for all or any of the following matters, namely: –

(a) the terms and conditions ofservice of the Secretary and other officers and employees of the Board undersub–section (2) of section 4;

(b) the conditions subject towhich equity capital may be provided by the Board under clause (a) of section6;

(c) the form in which and thetime at which the returns may be furnished to the Board under sub–section(1) of section 15.

23.Rules and regulations to belaid before Parliament: Every rule and every regulation made under this Act shall belaid, as soon as may be after it is made, before each House of Parliament,while it is in session, for a total period of thirty days which may becomprised in one session or in two or more successive sessions, and if, before theexpiry of the session immediately following the session or the successivesession aforesaid, both Houses agree in making any modification in the rule orregulation or both Houses agree that therule or regulation should not be made, the rule or regulation shall thereafterhave effect only in such modified form or be of no effect, as the case may be;so, however, that any such modification or annulment shall be without prejudiceto the validity of anything previously done under that rule or regulation.