POWERS AND DUTIES OF CORPORATIONCentral

Section 19B of The Road Transport Corporations Act, 1950

Corporation to obtain the approval of the Central Government in certain cases.

1[19B. Corporation to obtain the approval of the Central Government in certain cases.--In the exercise of any of its powers under this Act, the Corporation shall not incur on any single work, service or scheme or for any other purpose a capital expenditure of more than twenty-five lakhs of rupees except with the previous approval of the Central Government.]

Summary

The Corporation must seek permission from the Central Government for large spending projects.
A spending limit is set for any single work, service, or scheme.
This limit applies specifically to capital expenditure, which means money spent on long-term assets like buildings or fleets.
The current limit for spending without prior Central Government approval is twenty-five lakhs of rupees.

Practical examples

1The Sunrise State Road Transport Corporation wants to build a new central workshop that will cost 40 lakhs of rupees. Because this is a single project costing more than 25 lakhs, they must wait for the Central Government to say yes before starting.

2The transport authority decides to upgrade its ticket booking software for 15 lakhs. Since this single service project is under the 25 lakh limit, they do not need to ask the Central Government for approval under this specific rule.

FAQ

1. What is the spending limit for transport corporations under Section 19B of The Road Transport Corporations Act, 1950?

Under Section 19B of The Road Transport Corporations Act, 1950, the limit is twenty-five lakhs of rupees for any single work, service, or scheme.

2. Who must approve large capital projects under Section 19B of The Road Transport Corporations Act, 1950?

The Central Government must give previous approval for capital expenditures exceeding the set limit according to Section 19B of The Road Transport Corporations Act, 1950.

3. Does Section 19B of the Road Transport Act apply to daily wages or just big projects?

Section 19B of the Road Transport Act specifically applies to capital expenditure, meaning money spent on permanent assets or major schemes, not daily operational costs.

Test yourself

1.Under Section 19B of The Road Transport Corporations Act, 1950, what is the maximum amount a Corporation can spend on a single work without Central Government approval?

2.Which type of spending is specifically regulated by Section 19B of The Road Transport Corporations Act, 1950?

3.Under Section 19B of The Road Transport Corporations Act, 1950, whose permission is needed to spend thirty lakhs on a new bus depot?

4.Under Section 19B of The Road Transport Corporations Act, 1950, does a scheme costing twenty lakhs require Central Government approval?

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