FINANCE, ACCOUNTS AND AUDITCentral

Section 23 of The National Dairy Development Board Act, 1987

The Board may, with the previous approval of the Central Government or in accordance with the terms of any general or special authority given to it by the Central Government, borrow money from any source as it may deem fit for discharging all or any of its functions under this Act.

Summary

The Board can borrow money from any source to carry out its functions under this law.
Before borrowing any money, the Board must get prior approval from the Central Government.
Alternatively, the Board can borrow money if it acts within the terms of a general or special authority already granted by the Central Government.
The borrowed funds must be used specifically to discharge the Board's duties under the Act.

Practical examples

1The National Dairy Development Board needs 50 million rupees to set up a new milk processing plant in Gujarat. The Board applies to the Central Government for permission and, after receiving approval, secures a loan from a commercial bank.

2The Central Government gives the Board a general authority to borrow up to 10 million rupees annually for research purposes. The Board borrows 5 million rupees from an international dairy research fund without needing to ask for a new, specific approval, because it falls under the existing general authority.

FAQ

1. Can the National Dairy Development Board borrow money from foreign banks under Section 23 of the National Dairy Development Board Act, 1987?

Yes, under Section 23 of the National Dairy Development Board Act, 1987, the Board can borrow money from any source as long as it has the previous approval or general authority of the Central Government.

2. What is the main condition for borrowing money under Section 23 of the National Dairy Development Board Act, 1987?

Under Section 23 of the National Dairy Development Board Act, 1987, the main condition is that the Board must either have the previous approval of the Central Government or act within the terms of a general or special authority given by the Central Government.

3. For what purposes can funds be borrowed under Section 23 of the National Dairy Development Board Act, 1987?

Under Section 23 of the National Dairy Development Board Act, 1987, the Board can only borrow money for the purpose of discharging all or any of its functions under the Act.

Test yourself

Q1.Who must approve the borrowing of money under Section 23 of the National Dairy Development Board Act, 1987?

Q2.According to Section 23 of the National Dairy Development Board Act, 1987, from which sources is the Board permitted to borrow money?

Q3.What kind of government authority allows the Board to borrow money without needing a new, specific approval every single time under Section 23 of the National Dairy Development Board Act, 1987?

Q4.What must the borrowed money be used for, according to Section 23 of the National Dairy Development Board Act, 1987?

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