Section 39 of The Petroleum and Natural Gas Regulatory Board Act, 2006
- (1)There shall be constituted a Fund to be called the Petroleum and Natural Gas Regulatory Board Fund and there shall be credited thereto--
- (i)all grants, fees, penalties and charges received by the Board under this Act;
- (ii)all sums received by the Board from such other sources as may be approved by the Central Government.
- (2)The Fund shall be applied for making payments towards--
- (i)the salaries and allowances payable to the Chairperson and other members and the administrative expenses including the salaries, allowances and pensions payable to the officers and employees of the Board;
- (ii)the expenses incurred or to be incurred in carrying out the provisions of this Act.
- (3)The Central Government shall--
- (i)constitute a committee consisting of such persons as it thinks fit to recommend to that Government the budgetary requirements of the Board for salaries, allowances and all other expenses; and
- (ii)fix the budgetary ceiling of the Board on the basis of the recommendations of the committee.
Summary
- The law creates a specific account called the Petroleum and Natural Gas Regulatory Board Fund.
- This Fund collects all grants, fees, penalties, and charges received by the Board.
- The Fund also holds money received from other sources, as long as the Central Government approves them.
- The money in the Fund is spent on staff salaries, pensions, administrative expenses, and other costs of carrying out the Act.
- The Central Government sets up a committee to recommend the Board's budget for salaries and expenses.
- Based on that committee's recommendation, the Central Government sets a strict budgetary ceiling (spending limit) for the Board.
Practical examples
FAQ
1. Where do the fines and penalties paid by companies go?
All penalties and fees collected by the Board are credited to the Petroleum and Natural Gas Regulatory Board Fund.
2. Can the Board spend as much money from the Fund as it wants?
No, the Central Government sets a budgetary ceiling (a spending limit) that the Board cannot exceed.
3. Who decides what that spending limit should be?
The Central Government fixes the limit, but they do it based on the recommendations of a special committee they constitute.
Test yourself
Q1.Under Section 39 of The Petroleum and Natural Gas Regulatory Board Act, 2006, which of the following items is legally required to be credited into the Board's Fund?
Q2.Under Section 39 of The Petroleum and Natural Gas Regulatory Board Act, 2006, how is the budgetary ceiling of the Board determined?
Q3.Under Section 39 of The Petroleum and Natural Gas Regulatory Board Act, 2006, can the Board accept funding from sources other than standard fees, penalties, and government grants?
Q4.Read Section 38 and Section 39 of The Petroleum and Natural Gas Regulatory Board Act, 2006 together. How does the money granted by Parliament in Section 38 flow through the system described in Section 39?