Section 7: Investment of the Board with certain powers

7. Investment of the Board with certain powers.— Notwithstanding anything contained in any law, regulation, rule, order, notification, agreement or other instrument for the time being applicable to any factory, or any officer or other employee appointed or engaged in, or in connection with, any factory, the Board may, in relation to such factory, officer or employee, exercise the following powers of the Federal Government or of any officer authorized for the purpose by the Federal Government, namely:— (a) to determine the terms and conditions of service, recruitment, promotion, transfer, posting, dismissal, discharge, demotion and other disciplinary actions of all officers and other employees: Provided that the terms and conditions of service of any officer or other employee appointed or engaged before the commencement of this Ordinance shall not be varied to his disadvantage and that he shall not be dismissed or removed from service or reduced in rank by any authority subordinate to that by which he was appointed: Provided further that the officers or employees appointed before the commencement of this Ordinance shall be given an option, after the service rules for the officers and employees of the Board have been made, to opt for the new service rules or to continue to be governed by their existing service rules; but once the option has been exercised by an officer or employee within the time fixed by the Board, it shall be final, and an officer or employee who does not exercise the option within the prescribed time shall be considered to have opted for the new rules: Provided also that the promotion, demotion or other disciplinary action against an officer or employee on deputation or secondment shall be governed by the service rules applicable to him; (b) to appoint or engage such officers and other employees, advisers, consultants on contract as it considers necessary for the efficient discharge of its functions on such terms and conditions of service as it may determine; (c) to carry out all technical and engineering projects or works, or to enter into contract or agreement pertaining to their execution; (d) to make all purchases of plant, machinery and stores either in the country or abroad in such manner as it thinks fit and also to dispose of stores and equipment and write off the losses; (e) to fix pay of the officers and other employees wherever necessary either initially or otherwise at any stage within the pay scales prescribed by the Federal Government; (f) to utilize or incur expenditure in respect of lump sum grant allocated for the purpose in the budget; (g) to utilize surplus capacity of factories to undertake commercial activities in markets within the country and abroad; (h) to create and operate with the approval of the Federal Government non- lapsable revolving fund in foreign as well as local currency to meet objectives of indigenization and to promote export and R&D activities from sale proceeds of the factory products; and (i) to make, subject to any direction issued in this behalf by the Federal Government, departmental, financial, and accounting rules and procedures based on sound commercial lines within six months of establishment.

Effective date: 2000-01-01

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