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The Gujarat Infrastructure Development Act, 1999.

Gujarat · state statute
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• . . 
Extra No. 13 REGISTERED NO. GIGNR/2 
© • 
IDIJt . <&ujarat Oinutrnmtnt 
EXTRAORDINARY · 
PUBLISHEl> BY AUTHORITY 
• 
VOL. XL] TUESDAY. OCTOBER 5, 1'99/ASVINA 13, 1921 
• 
. -
Separate ·paging is given to this Part in order that it 
may be filed as a Separate Compilation. 
PART- IV 
Acts o( the Gujarat Legislature and Ordinances promulgated 
and Regulations made by1h!! Govemo& 
The following Act of the Gujarat Legislature, having been assented to by the Governor 
on the 2nd October, 1999 is hereby published for general 'infonnation. 
KUM. H.K. JHA VERI 
Secretary to the Government of Gujarat, 
Legislative iina Parliamentary Affairs Department 
GUJARAT ACT NO. 11OF1999. 
(First published, after having received the assent of the Governor in the Gujarat 
Government Gazette, on the 5th October, 1999) . 
AN ACT 
-lo provide for a framework for participation by persons other than the 
State Government and Government agencies in financing, constructiqn, 
maintenance and operation of infrastructure projects and for that purpose to 
esta!>lish a Board and to provide for the 
matters connected therewith. 
It is hereby enacted in the Fiftieth Year of.the Republic of India, as follows:-
1. 
CHAPTER I 
PRELIMINARY 
Short title, ex· 
(l) This Act may be called the Gujarat Infrastructure Development ttntand com-
Act, 1999. , mencemeot. 
(2) It extends to the whole of the State of Gujarat. 
_(3) It shall be deemed to have come into force on the 28th April, 1999. 
IV-Ex . 13-J 13-1 
• 
• 
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• 
•. 
_ .. - ------- -
GUJARAT GOVERNMENT GAZETTE, EX., 5-10· 1999 [PART IV 
.,....,.._ J. ID 1his Act, unk:ss tbe C1111a:t u1bea witc 1equiies, 
(a) "Boald" mcam1hc0ujllatiafiutroctll1e Dewdc91•"' Boan! eslllbl.isbcd imda 
sectim 17; 
(b) "<> n iessirn asa.........m" means a contract of tbe oata:n: specified in Scl•ec!nle 
n betwem a deo<doper and die State &wanmeot. a GOYellllllCll1 agency or a . 
specified Go•eum:al lljlCllCy; tdatiDg to a projel:t; 
(c) "dewloper" means a perlOD widl whom coneessiaa agieemmt is em:ml 
Dito by 1he Stale Gavemmmt, a Oova:mnmt agency or a specified Gowrnmem 
agency; 
(d) "escrow aa:ouot" IJIC8llS a baok-ac:comit in which cash is dep+ wited or from 
wbid! cash is withdrawn in such-as spcci&d in1hemw: asiaaagim•enl, 
(e}. "GcMmmmt af/llllCJ"' means a €orpontioo or a body owacd or cootrolled by 
1he S1atlc Gow:rmneot. or an auduity eltl!blished by or 1llJder any law aod ill"'"dcs 
a localaulbcrity; 
(/) "iDftasttuctll" lllClllll fac:jljrir:s and services provided by a ~ 
· (g) "local aulhority" mc:aos a mnnjcipa1 IXllpoiatioa, mgar paocbayat, lllllDicipal 
IXlUDCil, o«ified area committoe, clisttil:t pandlayat, talub paodlayat, village 
paodlayal or such other body; 
(h) "nimiber" mcam a nmbcr oftbc Boan1 ioohdiog C'.bainmm, Vice-Chainnao 
and Member • secRlaty; 
(i) "presc:nbed" llJCllllS piescnbed by Nies made UDder ~ M; 
(j) "projea" means a project 'PC' ified in Scliedolc I; 
(k) "teguiatioas" 1111:31!S ieguiBliaas made UDder section 38; 
(1) "rules" meaouules made UDder sectim 37; 
(m) "senior loan" means a loan in rapc:ct of'Wbidl a tlaim ODaaseC! is prior to the 
claim on 1hc assca ill reipccl of other loan and which is specified as suc6. ill au 
agieemeut providiDg ....... e; 
(n) "specified Govermoent agmc:y" llJCllllS llll agency coasistiDg of the State 
GhetlJdleS ml & CJut0 IMl""1t lgalC}' participllliDg joimfy; 
·(o) "State Govemmeot guarantee" means a guarantee given by the State 
Govemmcal to a dm:lopcr ocmi!lrnt wilh 1hc provisicns of 1hc Gujarat Stale CeJ. rm 
Guaraulees Act, 1963; "'1"3. 
(p) "su~ loan" meam a loan in respect of which a claim on assets is 
'subsequc:m to tbc claim m1hc lllCls ill iapcc:t of lllOlha' bm llJll wbicb is spccifiM 
as such in an agmmaa providing fop•• e; 
(q) "sUbsidy" nms fimncial P"i!!lmp ill cub or kind provided by the State 
GoYamoait, a Gowmmmt aemcy OI' a specified Go\'l2IJlllClll agimcy; · 
(r) ~ ~" means tbe 8IJ1C1l!l!t daargcd 1llJder scctiCll 11. 
PART JV] GUJARAT GU\'ER."-\1Et-:TGAZETTE, EX., 5- 10- 1999 
CHAPTER fl 
· JNFRASTRVCTURE PROJECTS • · 
3. Any person ~ parti&ipate in final!i:ing, coostni"c:tion, maintecaDce and pperation of a Partidpatio» 
prpject. • la project. 
> 
4. (1) (a) A persoo may eater iDto a COllCenioD agreemmt of .the nature specified in Co-on 
Schedule·ll wi1frthe Staii: Go~ a 'Government· ag121cy or a specified •cu t. 
Govenimmt agm;y . . 
(b) The scheme fur a coocessioo agrec:ment sball be sucb,as may be prescn'bed. 
r 
(2) When: the. ~ having ft&lUd to the nature ofa ~is satisfied that it is 
necessary so to do, it may Pemut combinatioo of two or mor~ ag=maits of the nature 
specified in Sd1ednle U iDlo ooc agn:emem. . 
(3) No c0ocession agreemmt shall provide fBr transfer of a projeci by a developer 
· to the State Govemroent, a Government agency or a specified Govemmeot agency later 
than thirty-five years from Jbe date of agreemmt. 
(4) (a) The state GOwmmmt may, by notificatioo ~the Official Gazett£, add to 
Schedule n any olher nature of 3gieemmt and dlereiq1oil the nanue of agreement so 
added sball be deeuled ID be a nature . of agiccmcpf specified in Scbedule ll for the 
purposes of this ~ 
(b) Every oocificatioo issued Wider dauai: (a) shall be laid befure the State 
Legislature as ~ as may be after it is issued. 
• 
S. ( l)A proposal prqiaml. by the StllSe CloYanmelll, a Govcmmcnt agency or a Specified Rem........ia­
~ · agem;y fut panic:ipatioo liy a pmm olher 1han the State Goveromeul, a :::.~ 
Govemment agency or a specified Govrmment agency in finaneing, construction, · 
majntaia,,C.., and opcratiol of the projcc:t, the C06t of 'Which --=ls such amoout as may 
be prescribed, shall be suhnritted to the Boani aluugwidl proposed cooo•ssioo agnaoeot 
relating thereto fOr its coosidenltion and different amoumsJJf ccst may.be prescribed for 
diffi:rent nature of projects. 
(2) The Boani shall o "'"'"" the proposal and the p1oposed concc:ssion agn:c:anmt 
submitted to it UDder sulHleclice (I) or sub-section (I) of section 10 and may eilller 
ICC>lllHMOd with or widDJt modfficatioas or DCJt J:eOIM!Mi!f«I, OI' R:tum the proposal and 
·<Xi" .,mm ~fur roou•ide1atioo of the Slate Gownm:nt. the Govenmeul agency 
or, as the case may be, the specifiM Govcmmc:ail agc:ax:f. 
6. The Staie ~ a Gmiemmenr agency or a specified Govemnem agency may A • s - bJ 
provide to a person assiatance in the fullowin811111111er, namely:- State 
. • Goffnllll .. t, 
(a) participation m theequityoftheprojec:t not exceeding forty-nine per~. ofthe Go---1 
iocal equity; oe-J or 
., llled 
(b) submy DCJt c:wc61iog fifteen per tall. ofthe cost ofthe project; Gonnmmt 
(c) aenior or sobouliill!fe loans; .....,,. 
(d) guarantee by the State Govemmeat, a ~ agency or a sptcified 
Govemmeat agency in respect of liability of a Gowrmncot agmcy arising oat of a 
Oll"tsSion agJCCUMlt; 
(e) ~01ing and opcaatiou of escrow NXXlQDI; 
(f) coofcrmeat of a right to dcwlop any land; 
(g) incenttves by the Statcau-mnent in die fonn of cvmption from payment~ 
or defeated payment~ any tax or ftics lmesl by !be S1Btc GOYa:nmatt Wider any 
law; or 
(h) in any other 111B11D« as dresned fiL 
7. No omicessioo agrecmcot far undc:a1akiJlg a project shall be mlaed iDIO widl any Pro• ilDn 
... I 
penon llllless the proceckm: specified in sections 8 and 9 or, as the cue may be, q:x:tims •• • 
8 and 10 bas been followed. . • .... -
• 
13-4 GUJARAT OOVERNMENTOAZETI"E, EX .. 5-10-1999 fPART IV 
- - -.- -~--- . 
s I :d • or &. (1) A <xJro:Ssion &gieemcot for UDllertakiDg a project may be entered into wilh a 
,.._. person who is sek :led 1hrougha~TWfiegaa provided in sec:tioo 9.or by 
direct negnri!!lioo at provided in s.ectiau 19. . . ' . ... ,,. .· 
' . -
(2) The matters relating to o "'Pd ii i.e W.ning and direct negnriation sbalf be sUcb · be ' . 
as~ . ~ ... . •:A,j, -.• :. ••.• ~w• ~-· ••• • •• ;, .\.. 
s 1 r rJlf 9'. (l)Ontbc acce;Jia•ire of~ m>\i'••jj.w1arion of~Bs1Pl ~,~.-_section (2) 
...,._ bJ of section S, the Slate Oovemmmt, the Oo\iemmaJt a8mcY. pr, as. ~·~y._be, the 
-• . 'Hive speciMI GovemmD agency shall select adeYClopc:r fcrtbc projec:tdirough the e::w!jditive 
pabllc lliddlDC-pubjic bidcliDg iil tbs !!!8lmcir provi&d bOO!aiadm. . ... > • 
(a) A public DDtice inviting pcnoaifo pariiQpato in o 11q...a'tive'pUbliC bDtiug fur 
ll!iderlakiDg the ptoject;._ .' •-' . . •, . r 
,,•' -.. . ' •• , _:. - ~·, 'T .• 
(i) shall be publisbcd OllCIC in a week fur tWo ocmecuthoe weeks in ~ thrCe 
newspapers, tV«>iit gmcnl' dn:ulatioa aiidoociil circulatioo. in tbc atea in which 
.' dle.prnject is to be·ualiltakm, aiid . '. . . ~ ., .. 
(ii) may be publisbcd by any & means of~-~ 
Cbi.(i) .Ally peiso!i~;mtmd$·11i·~-~d)C ~; ~:b~ ti> 
-~lhe · · · ' ·' · of a pjiJ>lic: idWc puhl' ~ nM- dsi1 (a\ 
. :'sb!ilt'~'~ ~tt@ant i0'1iis k9I, ~ ;;"'"· -~-;.,l 
tman!u capacity to UDdeitake the said project in such fonii ~ ~ 
c'~. •. · particulwai-nDy ·be*" :ililit-!Jtftleostate'6o~;lhe~ alJ2>CY 
or, as the case may .be, the speCifieil' 00.tiaiicar ~ :'· ~ 'i-~r,,. · ' 
· • · ~· • .. ,· (ii) IJllD$t&n:O...•.i11nue111,.t1ie-OO+eiutuiW~ '<ir;'a~C:demitbe;~ 
.-. · • · ••• spocifitd GOwmmait agl:nl;}t shill[esdl!.;•.e111Cfidi:liihlliion anilod1ei'~ 
su~'by ihe pel!IEll · UlldlJr SltlKlau!e (i)-iild deCide as 1i:i ~sud! 
. persoll;·felfills -t11e emena·Cor prelq.nt1immo11::as laid c1oWD. by'the siatb 
, Go~1he~:egency or, as ttie·case·ihaybe, t&e:speciiitd 
' 
-- t 
·~ .. .s .. -'' ' -: .... . . . ~- ··~} ...... ' , ·. 
r ....... • '._,, ~:" . !~.~ 
(iii) A person who fulfills the a1teria as laid down under sub-clause (ii) shall be 
. the pn>qualified perscn. . .• ' 
(c)(i) Where aiter a~ who is. a~~ p~1;,31_ifil,t uod_ei: ~ <J!) 
• - ' ....,,,,. •• • •.• • ·-P • ·- .•• • • 
· , butbefure siic;h l!C~ ~rs ~. a .~sjQll ~t.w¢i -~. ~ 
Govetnmem, the Clm~ffillint.·~ Qi, ii! ~ -~ IJ!8Y..be. tbe sP,Ccijie!) • 
GovemmcU1 agency, any comtitueot oftbe consoriium disa•sociates from such 
, :· ··~ 1beneiis Slate Go\'emr1*llt, the 6ovb•u•Magmc{or, .s'ihe Cub 
may be, the spc:cified ~ agency shall c:d upoll tlii' c:oosortiiun tO 
·c, ~~.~ ~~~,.~~ill.~ ~Jiii\ as specified by it 
so that; m the opm.tOll. of the State Government, the Govemmeut · ~ or, as 
the case may be, tbe. specifjed ~~. the coosortium .fulfills the 
critefia retei1ea to in sub-clause (ri).of clai'isC (b). · ··· . · . 
(ii) Where the ~rtium fails to CQDJply wiih ~ ~w;=eot~ in sub-
~ claUSe (i); 1be ~ sli4ll ~to be.the p~}>CnOii. , 
( d) Al! pre-qualified pez 3Wl shall be pamitted to subm.it their propnsil• 10 under1ake 
the project in such form(~ tecbnica,l and_financial.aspccts) as.maybe 
specified by the State GovefllJDeDt, the Govemmeot ~or, 3$.the case may 
be the-...:.:: .... Government' N > , ~i"""-'1.-U.\ilU agcocy. , _. 
. (2)oii~oftbe~fu;.mthe~~tbe~~ 
the Go .. ermnent agency or, as the case may be, the specified Government ~ shall · 
evaluate the proposals from technical asp«t . . · 
(3) If the proposals are m order frc.'11 the technical aspect, the State. Oo\-emoiem, 
the Govcnnnetrt agency or, a;, the -~may be, the .s;=ified Goy~ age:iicy Slian 
evaluate the propos:ils iiom the 'fiaaru:ia! aspect, ha.n.ng regard to diffeteo! factors. specified 
below in respect cI drlierent nan;re ?fthe~1lt~ :;p<iC'&ed in Sc~ule II:-
• 
• PART !VJ GUJARAT GOVER.NM ENT GALEITE. EX .. 5-10-1999 
• 
(a) In relation to the build O\•m operate and transfer agreement and tbe build oper:ite 
and transfer agreement, any of!he following factors shall be taken mto consideration 
for the purpose ot evaluauc.n ofth0 proposal, namcly.-
(i) lowest· bid in terms of the present \'alue of user charges, where penod of 
concession is fixed; 
(ii) the highest revenue share to the Stare Government. the Govcrrummt agency 
or the specified Go\iernment agency; -
(iia) a bid in terms of the shortest concession period, where the user charges is 
fixed; 
(iv) the lowest present value of the subsidy, where the period of concession is 
fixed. 
(b) In relation to the build and transfer agreement and the butld lease and transfer 
agreement, the lowest net present value of the amortization payment from the State 
Government, the Government agency or the specified Government agency_ shall be 
iaken into coosideration. 
(c} In relation to the ·lease management agreement, highest presen.t value of the 
leaSe payment to the State Government, the Go~rrunent agency or the specified 
Government agency shall be taken int.:> consideration. 
( d} In relation to ihe management and service agreement, the lowest present valu~ 
of the management fees to be paid.by the State Government, !he Government 
agency or the specified Government agency shall be taken into consideration. 
(e) In relation to any other nature of agreement, the State Government, the 
Government agency or the specified Goverrunent agency may consider such factors 
as may be recommended by the Board. 
(4) Where- , 
(a) the propos:tls are evaluated under sub-section (3) from the financial aspect 
. having regard to a relevant factor specified in that sub-section and referred to in the 
proposals, and 
(b) one of the proposals so evaluated satisfies the financial aspect having regard to 
the relevant factor, 
the State Govcmmcnt, ·the Government agenc)r or, as the case may be, the specified 
Government agency, may enter into a concession agreanan '•1itl1 the pei-son who has 
submitted the proposal referred to in clause (d) of sub-section (I). 
13-5 
~ . 
(5) Where no proposal stands the scrutiny from the technical or financial aspect, the . 
competitive bu:!ding shall stand cancelled. 
(6) Nothing iii sub-section (5) shall prohibit !he State Government, the Government agency 
or, as the case may be, the specified Government agency fran inviting pecsons to participate 
in competitive public bidding in respect of the proposal which stands cancelled under that 
sub-section after, if neces~ary, revising the same.· 
JO. (I) Where- ScltttioD by 
dJttCt 
(i) a proposal for participation by a person for undertaking a project and a oego•"-tion. 
. -
proposed concession agreement have not been prepared by the State Government. 
a Government agency or a specified Government agency for being submitted to • 
the Bj)ard under sub-section (1) of sect:Jou 5, and 
. . 
(ii) a proposal for Undertaking a project and a proposed concession agreement 
prepared by a person are submitted to the State Government, a Government 
agency or a specified Government agency; 
the State Government, the Government agency or. as the case may be. the 
specified Government agency may-
<a) consider the propos:tl a.'ld the proposed concession agreement from ali ::spects 
{tn<;iudu.,& tedulical and finar:.Cia.i) a.tad if lletA.!ssary, n1od~fy the salTtC tn ''-'.JJ1St:1tation 
. ' 
' 
13-6 GUJARAT GOVERNMENTGAZETIE, EX., 5-10-1999 [PART IV 
- -- -. - --·-Withtne persoiiWho bas submitte9 the. propqsal and th~ propose(feoncession: 
.; .. ,... ' · . . 
A1no.unt to 
becllarged 
for pro,iding 
good!> aod 
secTices. 
agreement; and · . . . . 
(bfSubmit the proposal and the proposed c0ncession ~ent to the Boord, if­
(i) the cost of the prQject exceeds the limit prescribed under sub-section (1) of 
section 5, and 
(ii) the undertaking of the project does oot requir-e financial assistance in the 
form of subsidy from the State Govemment, the Government agency or the 
specified Government Agency. 
(2) On acceptance of the recommendation of the Board made under sub-section 
(2) of section 5, the State Government, the Goverr.raent agency .or, as the case may be,. 
'the specified Gover11;.w:nt agency shall adopt the proposal as the basis for setecting a 
person with whom -:oncession agreement for UDdertaking the project may be entered into, 
and for selecting such person, the Slate Government, the Government agency or, as the 
case may be, the specified Government agency shall follow the procedure of competitive 
public bidding specified in se..."tioii 9. 
(3) Where a person is selected by following the p~ocedure of the cqmpetitivc public 
bidding (hereinafter referred to as "the selected person"), the proP.csal of the selected 
person shall be compared with the proposal which i~ earlier subffiiruid by a person to the 
State Government, the Goveinment agency or, as. the case may be, the speetfied 
Government agency under sub-section ( 1) (hereinafter referred to as "the earlier 
proposer''). · 
{ 4) Whcsc the proposal of the earlier proposer is not preferable to the proposal of 
the selected person, the earlier proposer shall be given an opportunity to ma.1<e his proposal 
competitive with that of the selected person witli.in a period of thirty days from the date on 
\\IDC}l he bas been given the opportunity and where the earlier proposer fails to do so 
within the said perioO, the Statt Govcimmznt, the Government agency or, as the case m:iy 
he, the specified Government agency =~ e.nter into a contract with the selectixl person. 
(5) (a) Where a concession agreem~'llt bas not been entered into with the earlier 
pr-0poser, the cost of preparation of' the propo:;al and the conoession agreement incurred 
· by him shall be re:.mbursed by the State Government, the Government agency or, as the 
case may be, the specified Government agency and on such roiinbursement, the proposal 
and ti1c C-ODCCSsion agreement submitted by the earlier proposer shall be the property of 
tile St< ; Government, the Government agency or, as the. case may be, the specified 
Govcrm. .~ .. at ~ency. ~ , 
{b) n.~ cos! of preparation of the proposal and the ccricess1on agfeernent shall be 
rjetcnnined in such manner as may be prescribed. 
fl. {I) When~, in pursuance of a concession agreement with the State Government, the 
Govermnent agency or, as the case may be,the specified Government agenc>,-
( a) (i) ·the developer has constructed a project for providi'lg goods or services, and 
(ii) the project \ests in the developer for a penod specified in the concession 
agreement, and 
(iii) on expiry of such period, the project is to vest in the State Government, the 
Governmeut agency or, !he specif.ed Government agency, 
the ueveloper may cbar,ge such amount as specified in ·the agreement for· 
providi.-Jg goods or services by t)le project so long as the project continues to 
vest in him or 
(b) a." existing project is vested to a perSon to renovate, cper~ and maintain, the 
deve;~r rn:iy charge suc.h amount as specified in the agrecmen~ for pro,~ciing 
goods or services by the pro¢ so long as L'ie proJ~ continues to vest in him. 
(2) A concession agreement may provide. that a developer may, bavi~ regard to 
the rate of inflation, variation in the? rate of the fcreign exchanse ai1d such other factors, as 
may be prescriped, revi•e the amcunt of charges referred to :-, s>Jh-section (1) in such 
manner, as may Pe prescnbcd. 
PART !VJ GUJARAT GO' _F .. VENT GAZ: 1 F.. EX., 5-1 :-1999 13-7 
12. Where a provision is nude m a ccw...ess;cn :>3n¥.mt:nt requirir.g the c!eveioper to linancial 
mainta..1 u'tc project constructed ~)-him fo:- ~~nod spc'Clfied ir. sur: agr~emen•,-. seainty !or . .u;lal.ntecaoce 
(a) there shall be opened an escrow acro•111t :i} the develo.P<', the mo.~y out of or projuet. 
which shall be e..-pended for the maintenai:..-c of t.l>e project i::, xordance with the 
proviSions made in me coo=sior. agreement or ;,, 3'1) otlw agreerr.ent "ith the 
State Govcrnmcr.t, the. Govcmmer.t agency er, 3S the case mly be, the specified 
Government agency: or 
(b) the developer shall execute a bond in the favour of the State Governmem. tho 
Government agency or, as the case may be, the :;pec1fied Government agenc; 
binding himself to make payment of such amount of i»oney as spec• tied in the bond 
to the State Government, the Govemin~nt ag1.'tlcy or, as the case may be. ·ne 
specified Govcrnmern agenc)·. in case be fails to maintain the projec: in accorci>.J>ce 
with the provisions ma<ie in the c.oncessioo a,,;~~1ent 9r any other 3greement with 
the State Governmant, the Government agency or, as the case may he, the SJ"'Clf.ed 
Govemment agency 
• 
I 3. ·A developer shall provide at his exi)ense, training to the employees of tne S•ate Training to 
Government, the Government 3gency .or, as the case may be, the specified Government 'emplo1-. 
ag "1CY in respect of maintenance or ope:ation of the project in accordance with the 
pre . :sions made in the concession agreemem or ill any other agreement W>th the State 
Ge. -ernment, the Government agency or, as die case may be, :he sp;.;c.fied Governmc-.it 
agenC}' 
14. V..'here the project is transferred 1o the Stai..:: Govemmcnt, the Government agency Tntosfer or 
or the sp~ified Go·.~mment agency according to the provisions of the concession «rtam rights. 
agrcemen~ ti! the "'ghts cf the developer in respect of the project shall stanc'. transf.:rred 
to the State Goverr..ment, th~ Government agency or, as the case may be, :ht: specified 
Government a.;ency. ' 
15. (!) Where ;oncession .greemcnt 1s terminated by the State Government., the Tttruioation 
Government ag. ;icy or, as the cas.: may be, the specified Go«emmeilt agency with the of ooaeesoioo 
consent of the developer or iil abS<c:ice of any defiwlt of the devciopet, the devel~r shall agreemeoL 
be entitled to such amount of compensation for such termination as speci,6.ed in the 
conces$iOo agreement. 
(2) A concession agreement may provide that if a derault specif.~ therein is 
coounitted by the developer, the State Government, the G "ernment agency or, as the 
case may be, the specified Government agency shall, after gi'ing to t.'te developer an 
opportwiity of lx.>ir.g heard in such manner as may be prcscnbc<l, be entrtled to termitiate 
the con~sion agroement and-
(a) take over the project without repaying the amount invested by the developer in 
the eqwt} and shall assume the liability of the developer towards Joans taken by him 
in respect of the project, or 
(b) enter into a concession agreement with a,~other person whose narnc is 
recommended by the lenders oftbedevebpe< aildapproved by the State Government. 
the Government agency or, as the case·may be, the specified Government agency, 
on tile same terms and condruons as are specified m the concesSJon agreement so 
terminated 
16. (!) Tne State (1overmnait may, by notification in the Official Gazette, add to Schedule ro- "' add 
I any olhc> project which falls witbm the executive p<l"'CI' of the State and thereupon the "' Scbeduie t. 
project so added shall be rl::emcd to be a pl'Oject specified in Schedule ! for the pnposes cf 
this Aci 
(2) Every ootificatiou issued under sub-section (ll shall be laid before the State 
Legislature as soon as may be after it is issued. " 
, 
13·8 
• 
GlJJARAT GOVt!RNMENT GAZETTE. EX. 5-10-1999 
CHAPTER 111 
ESTABLISHMENT AND CONSTITUT ION OF 804 RD. 
17. As soon as may be after the oommencement of this Act, the Stile Government may, 
by notification in the Officio/ Gazelle. establish a Board tu be called the Gujarat 
Infrastructure !)evelopmcnt Board ,,,th effect from such date as ma~ be spcc:ficd in the 
notificatioo_ 
Htad J 8. The head quarters of the Board slWI be at Gandhiiiagar or at such other place as the 
quarters of State Gcvenunent may, by notificati'On in the Official Gazett,e. specify 
Board. 
Conllituli<ln 19. The Board shall consisr of Chairman, Vice-Chairman, Member-secretary appotnted 
of &ard. by the State Government and such n\llTlber of other members not cxoeec!Jllg fifteen, who 
shall be appointed by the State Govenunent. · 
THm or omu 20. Every member shall hold office during the pleasure of the Srate Government. 
or mnatN'n.. ... 
Fllllog op 
c•sual 
VIC••cia 
M .. tinp of 
Boord. 
• 
U. If any vacancy arises 1n the Board or any committee lhcn:of by reason of death. 
resignation or Olberwise. the same shall be filled up by the State Government as soon as 
possible, 
22. The Board shall mec..'I at such time and place and shall observe such rules of prooedure 
lll regard to transaction of 1ts bus mess at its meeting (including !he quorum at such meeting) 
as may be provided by regulations. 
T•mponl'J' 23. The Board may associate "ith itself any person whose asstStance or advice is 
,.._.11ioa or required in perfomung any of its functions Wilier this Act 
ptl"408J with 
Boom • 
Pl'O'idlag 
1nfonnahon 
lo Board 
Consliturion 
of commit· 
tte~. 
o rr"",.. •"" 
'lfl"\'aots of 
s...m 
Acg and 
procttJ1a~ 
of Bo•i;d 
pr,.,umcd tu 
l>r ••lid. 
24. The Board may obuin the informatlon with regard to the rrogrcss of the projea 
"hich was submitted to 1t under sub-section l I) of sectioo 5 or which "as undertaken as 
per the pro\~Sions of section I 0 from the State Gc''el'lllllellt, a Government ag,'tlcy or a 
speeified Go\·crntntmt ag~ncy 
25. The Board may CQl1Sti<ute an Executive Committee llJld such other committees 
consisting of such .1umbcr of members, for performing such of its functions, as may be 
provided by regulations 
26. {l} The Boa.'11 may appoint such officers and se.-vants as 1t may consider n<:eessaJ) 
for the efficient discharge of1ts functions 
(2) The remuneratlOO, alla..ances and conditior.s of semce of the offi:ers wid 
sen ants of the Board shall be such a~ may be pro.idcd by the regulaoor.s 
27. No act or pr~'Cdmg of the Board or of a..~y of ltS ConmtJllCCS shall be invalid 
merely by reason of -
(a)any vacancy therem or'any d~foct in the constitution then:of. or 
/· 
••-- - •' "'''•••••OU • .-"'' .. '"""' ·- ., ... •'1•••••.-.o•o ••••"• o• ••u••• ~• ~· • •• • •••••• 
. p.,., IV! GUJARAT GOVERNMENT GAZ t 1 1 !:.. EX .. 5·i 0-I \l<J9 13-9 
I or 1956. 
CHAPTER IV 
FUt.CTIONS OF 80ARO_ . 
. i 
18. The func:nons of the Board shall be as follo\\s. namely :-
(a)to promoce participalioo of a pcr.IOll in financ:iog, ~on, mairircnancc and ,_ or 
operation of any project UTCSpeetl\'C of llS cost, a..rc1. 
(b) to advise the State Gov.:mment, a Govemmc:ol agency or a specified Government 
agency oo matters of policy m respect of participation :cfened to in clause (a), 
(~)to lay down priorities of ptjccts to be undcnaken hy the State Government, a 
Go-.emment agency or a specified Government agency ; 
(d) to consider the prop<>;W for undcltllcing a project and the pl'O\l<>SCd concession 
agice111ent submitted to it and to recommcod with or without modifications or 
not recommend or return the proposal and proposed concession agreement for 
reconsideration of the State Government, the Government agency or, as the 
case may be, tbe specified Govanmcnt agency ; 
( e) to elicit infonnatioo relating to National and International Financial lnstitutioos 
and to ensure co-operation of such Instilutions; 
(f) to oo-ordinate aod.mooilor the projcas UDdertaken in tbe State; 
(g)to 8SS1..ct in developing couc:cpcs of piojecls by UDdt.rtaking pre-feasi1uhty and 
feasibility srudies oftbe pl'OJeCI; 
(b)to undertike such project as may be CDUus!cd to it by tbe State Government, 
(i) to pcrfonnSi! ~h olhecfuncboos as may bec:ntrusledto it by the State Govermnent 
CHAPTER V 
FINANCE, ACCOUNTS, AUDIT AND ANNUAL REPORT. 
29. , (!) The Board shall have its own fund 
(2) All sums which may, from bme to time, be paid to the Boa..-d by the State 
Government or by any body and the amount charged by the Board IJJl&r sectioo 32 
shall be carried to the fund of the Board and all paymems shall be made the1eftom 
(3) The Board may spend such sums as it thinb fit for the performance of i1S 
f\anrti<ms under this Act, and such sums shall be mmd as expenditure payable out of 
the fund of the Board. 
30. (I) The accountS of the Board shall be prepanxl and maintainM in such form and m 
such manner as may be provided by n:gulalions. 
(2) The Board shall came to be prqiaml for each financial yeann annual ~ 
ment of acw1nts in such form as may be provided by regulations. 
(3) The accounts oftbe Board shall be audiled by an audiuir duly qualified to act 
as an auditor oftbe companies under scc:tion 226 of the Companies Act, 1956. 
(4) The auditoc shall send a copy of the report togedJcr with an audited copy of 
accounts to the Board which shall as soon as may be after the receipt of the audit 
report forward the same to the Sl3IC Gowmmcnt. 
(5) The Slate Govemmmt sbaU caux the audit rqiort ~with audited copy 
of BCConnt• to be laid be:fure the S- I qis••n as soon as may .be after tbe reccipt 
of the same onder snb-slClion (4) • 
l'uadol 
Boen!. 
• Aecoulllllld 
aDCllL 
31. (I) The Board shall during cacb financia l )'Qr prq>are in such form and at such A•u l 
time as may be provided by regnllfjms, an -1 rqiort giving a tnJe and full accouul of ._t. 
its activities during the pmoious financial year and an account of the aaivitics likdy to be 
UDder13lcen by it in current financial year and copies of such report shall be forwarded to 
the State Governmeol 
(2) The State Government shall cause CMll')' such report to be laid before the 
State 1.egjs!an1re as soon as lllllY be after the reciqJt of the report under sub· 
section ( l ). • 
13-10 GUJARAT GOVERNMENT GAZETTE, .EX., 5-10-1999 
.. ·CHAPTER VI 
MISCELLANEOUS. 
-
[PART IV 
~ ID be 32. Thi: lloaid may charge such atJIOWli as may be ddei1uixw:id by it for considering the 
m.rp.d by proposal and the proposed concession agreemmt under snMection (2) of section 5. 
-
M-bon, 3J. All members and ofikers and Se.tV3Jlls of the Board shall, while acting or purporting 
..nnn llDd to~ in pursuanc oflhe provisions of this Aaor.any rules or regulations made thereunder. 
-111 to be be deemed to be pub!ic SCMID!s. within the mt.aning of sec:tioD 21 of the Indian Penal 45 oft860. 
pablc Code - -
terVaatl. • 
P1-. or 34. No suit, pn:isecution or other leg3i procmling shall lie against the Board or any 
action talwl member and officer or servant of the Boan! for anythirig which is in good f3ith done or 
111 good ra1& intc:ndr4 to be dune in pursuance of the provisia)s of this Act or any rules and regulation 
made thei-ewider. · . ' 
Arbilntion. 35. A conressian agxeemeut shall CCl$in an arbitn!tim clause providing' !hat-
G11jarat 
Public 'l"orb 
Coo.lrKIS 
Disputes 
Arbitratio.o 
li'ibwlal Act, 
1992 not to 
.pp1,i .. 
PowU' to , 
mu. rcl.<s. 
(a)all paroe., to the~ shall submit to ~any dispute Y.bich may 
arise between them out of~ provisioos of the agreement, · 
(b}the place of arbitration shall be at Ahllledabad or any Olha ptaee in Indiaagn:ed 
lo by the parties, and 
( c) the dispute referred to in clause (a) ~ be decided in acc:ordance with the law 
for the time being in force in India. 
3 6. Nothing contained in the Gujarat Public W&tks Contracts Disputes Arbitration 
Tribunal Act, 1992 sh.all apply toa::.y a.'1lilratioo arising out of the provisi<XlS of the coocessioo 
agre.emer:t entered into by the State ('-o,·emmen\ a Gowrnmellt agency or a spe.;ified 
Govemment agency with a developer. 
J7. U) The State Government may, by ooti.iicatic: ~ l1ie Official Gaufie, make roles 
for~ ''18 out the purposes of this Aa. . 
(;; n particular ar.d with0tlt prejudice to the generality of the fo.-egoing power, 
such rulzs-i;-.::.y ?rovide for all or any of the following matters, namely:-
' (a) .the Sc1ic:me for concession agreemect wlder clause (b) of sub-section (1) 
of S«tinn 4; . ·- - 1' 
(b) the amount of~ of a project exceeding wbi91t a proposal shall be sut­
m.ined to the Board UDdet sub-sec!lon (l) of section 5; and diffemtt 
amounts of costs for diifereut nature of projects; 
( c) the matters relatillg to competitive public bidding and direct negoti&ion 
Gllj. 4 of 
1992. 
under sub-section (2) of ~on 8; • 
(d) the manner in wb:ch the costofpreparationoftlie proposal and.the con­
cessTon agreement ·s.".all be detcrmi."ltd undea- clause (b) of sub-section 
(5} of sec:ti~ 10; 
(e} the other factors ~ving regard t; which <-barges may be revised and !he 
mard:r in which. they may be re-,ised under sub sectiim (2) of section 11; 
. (f) the manner in which an opportunity of being be;ud sbaU be given to the 
devc::lcp« Wider sub-section (2) of section 15; · 
(g) any other matter which is to=be or ID3y be .P~- - . . . .. 
(3) All. rules JDade wcleT Uris =tioo shall be laid fut no;, les!> than thirty dey;s befure 
the State Legislature as •ooo 'as ;>ossible after tlley an: rnaJc l'l<! ;hall b<I subject to 
.· 
• 
-___ .... - -~ 
PAR"r IV] - GUJARAT GOVER. .1ENT GAZb TIL. EX .. 5- l O· J 999 -13- ll 
rescission by the State Legislatu.~ or to sucil rnodiileativ. as the State Le~' may 
• make during the session in \'iilich they are so laid or the sesGior im"'ediatcl) fo!hwing. 
Goj. Ord. 
l 0(1999. 
(4) Any rescission ormodificatioc so made bytlic State LegisJaft,,e shcli be published 
in the Official Gazette, and sbal.l thereupoo take effect · 
38. (I) The Board may make regu!atioos no!. iocon.•istl:ct with provisions ofthi.3 Act and p.,,.,.1o 
the rules made thereunder, for enabling it to discllarge its functions uruler this Aa. "'~k• 
rtgclations. 
(2) In particular and \'lithout prejudice to the for<going powe.r, .~.icn regulal!or.s 
may provide fur all or any of the following matters, :ia.-ncly :-
(a) the time and the place at which the Boazd sball meet ar..d r.tlcs of proo;­
dure the Board shall observe in regard to transaction of Its ln;sin= at its 
ineeting under section 22; 
' {b) the other committees which the Board may ~;the uumlx;r of 
members \\iiicb the executive comrnnu:e and other COO':t-ittees <nay coo­
sist of aDd the functiOOs ~the Board which the<; may perfu!-m Wida 
section 25; 
( c) tlie ·remuneration, allowimces ar.d condi1MlS of seivicc o• offi~ and 
serva.!$ of the Board under su!>-sectioo (2) of section 26; 
(d) the furm and m:mner in which th: ac.counts of the Boan! shall Ile ,,.re-­
pared ani i:naintailllld u.'ldc · sut ;,ection (1) of section 30; 
( e) tbe fonn in which an annual statement of accounts of the Beard shall be 
prt.-;ared UDdei sub-section (2) of section 30; 
(!) th. .. form in which and the time at which an annual report cf the Board 
shall be prepared tmder su~(l) of section 31, 
(i) ·ny other m~r which is, or may bf: necessray to be ;Jr=ribed for the 
efficiellt CONluct of the affairs of the ~ 
39. (1) Nothing in this Act sball affect the validity of­
( a) a coocession agrcancnt eutered into by the State GowmnJent, a Gove.rn,-nent 
agency or a specified Goveimntnt agmcy with any person before !he date of the 
commcnce:ncnl of this Act {bereilJafter rofened to a.~ "the said date•), 
(b) (i) a letier of intent or any other wmm8 isSUf.d t> a person before the said date 
en!IUsting to him a project fur execution if a ~oo agreement is euk:red into 
with respect ;o tile project in pursuance of the saai J.eirer of intent or 1;he wri~, by the 
Stl!ie Government, a Government agency or a speCified Government agcocy with 
such person within a period of ooe }"'31 from tbe said dati; or such further: period. as 
may he Cl<teDded by Ille State Govemmmt, 
(ii) a concessioo agreement-ei;itered into wider sub-clause (i) DOtwitbstandiD8 
that the procedure specified in :=lions -8 allCi 10 or, as the case may be, 
sections 9 and I 0 is oot followe(l before emering into sud! concession 
agreement. 
• 
Sa.tap. 
40. (1) The Gujarat InbastroctureDevelopmem Oniinance, 1999 is hereby repealed ·Rapeol-
. • ..... p. 
• 
(2) Notwi1bstandiog ·such repeal, anything done or any action taken UDder the said 
Ordinance sball be deemed to have ~ dooe or taken under this Act. 
' 
13-12 GUJARAT GOVERNMENT GAZETTE. EX. 5- 10-1999 (P"" ' IV 
SCHEDULE I 
(See clause (j) of sedion 2) 
PROJECTS 
L Power GeneratiOD, Transmissioo and Distnbutioo Systrms. 
2. Roads, Bridges and By-passes. 
3. Ports (other than major ports) and Harbours thereof. 
4. Urban Tramponatioo. 
5. Dams. 
, 
6. Water Storage, Water Supply and Sewerage System 
7. lrrigatim 
4 
• '8. Land Reclamation Projects. 
9. Industnal Estates including ln.dustrial Parks. 
10. Tourism Projects. 
11. Solid Waste Managemeot. 
12. tnformallon Tecl>.nology rclaied Projects. 
13. Education. 
14. Hea.'th Facilities. 
i5. Public Marl<ets. 
16. Post-harvest Facilities. 
17. Inland Waterways otb;r than National Waterways. 
18. Fisheries ll..)t beyond territorial ware:s. 
19. Development of Minor Minerals. 
20. Gas and Gas Works. 
• 
----- ----- ---· ··-·· ··- .. 
---- -- . . 
PART IV] GUJARAT GO\'ERNMEN T GAZE I IE, EX., 5-10-1999 13·13 
• 
... 
; 
.. 
SCHEDULE Il 
(See afH«tjon (J) of 6«llon 4) 
l'!ATURE OF CONCESSION AGREEMENT 
I. Build Own Operate and Transfer·Agree1tt6nt : An agrec:ment Vlbereby the 
developer Wldertakes to finana:, <XllSlruct, majntain and operate a project and wbcrtby 
such.~ is td vest in the developer fix a specified period DuriDg the period of operation 
of the project by the dewlopc:r. be may be peunitted to charge user charges as specified 
in an agieemmt . The-developer is required to tralisfeTtbe project to the State Govcmmeot, 
a Go~"'nwcut agency or, as the case may be, a speciMd GQvemmeut agency after the 
expi.rY ofthll1>eriod of operaticm. · 
2. Build Own Operat~ and Maintain .Agreement : An agrcemCIJl whereby a 
developer undcttakcs to finanp:, ~ ~~and maintain a project and wbcrdly 
such ~is io wstin the~ fur specified period. Durillgtbe period of operalicn , 
of the project, be may be pd miUr:d to dwge usa: clwges a,. PJl""ified in 1he agteemenl. 
3. Build andTransferA°greemenl :An~wbr:rd>ya~w:idert:akes 
to finallCe and coostJUct a projett . Aftei the completion of tbe project, the develOper is 
required to transii:r the projett to tbe State Government, a Government a,ency or, ~lhe 
case may be, a specified eJove:i:nment agaicy. Tbe dm:iopcl shall be paid such amount 
as is fuaid in .amortizatiOll sc"cdUle s~ in tbe ilglec::meut. . 
. . 
4. . Build 1Aase and Transfer .Agreeme111 :.AJI. agrecmcat wbc\'eby a dcvdopa­
underlakea to finance and consttuc:tthe project. On completion of the project, the developer 
haods it over to the State Clovcmmmt, a Govemmmr agQicy or, as the case may be, a 
specified~ agency iJr opecarioll under a ·lealeagreemmt fur period cpocifW! 
. in the agieemem after tbe expizy· of which the prqect standS transfered to the State 
&M:mment, the~ agency or, as~ case may be, the specified~ 
agency. • 
5. Build 1'Tan.rfor and Opuau A.g!W-1 :.AJI. agieetneut whereby ~ clowloper­
Ulldatakcs to finance and CXlllStnK;l the pllljc:d. Oo gwnp1etim of the project, the de\oe1opu 
ummn tbe project to the Staie Govemment, a Goveqimmt agency or, as the case may 
be, a specifi..t &m:mment agency;which permits tbe ckveloper to operate tlic project 
_ on im bdlalfmr .a period llpC" iflod in tbe agieemeut. : 
6. Lease .Management .Agreawnt :An i.gmment whlnby the Slate Gowmmcnt, 
a GoWl'lllllml agency or a specificd Govemmmt agmcy leales a project <rimed by the 
State Gow:rnmmt, tbe GoVClmmt agcPc)' or, as the case may be, a specified GMrmncnt 
8jplCy to tbeJJt1SOll wllo is pe• 11iilltd to operate and maintain tbe project fur lhe period 
. Specified in the agieement and to charge 119a' dJaip diaefui. 
7. : ManagelMnt Agnement :.AJI. agica:oent whereby the state Govemmm, a 
' Government agency or a specified Oovenuilalt agency eatrusts the operatioa llld 
••e• a 1mt of a project to a porsm fur lhf>period sPceified in tbe agioemour llll payment 
of spttified c;oosidmlian. In such agieemeul the Slate Govc:mmm, the Oo\'alllllClll 
ageacy or, as tbB cue may be, a specified ao-nmmt agmcy ma}> dlargc the mc:r 
c;:harges and collect tbe same eitbet itle1f or cm!ll18t the Collectioo fur coaaidontiou to uy 
penon who shall atta-colleding the 1UCI' dmies pay the - to the Slate Gow:maalt, 
a ~ agency or as the case may be, a llJ>Oi ilWI Government agency. 
8. RehabilJtate Ope"* l1llfi T'rantfer .AgreemeN · :An agi-.at whereby &11 
existing project is vested in a penca · 10 RllOWte, opcnitc and mai$in for the period 
spixiliol in the agRCIDClll afta-the e:xpiJy of wbidl the project is RqUiRd 1D be bada1r:d 
IV-EX. .13-4. 
13-14 
• 
s 
GUJARAT GOVERNMENT GAZETTE. EX .• 5-10-1999 lfAJ<T IV 
to the State Govemment, a Clovenmimt~~ or, as the~ may oo, the specified 
CloYemment ageocy. During the period of operation of the project by the developer, he 
may be permitted to charge user charges as specified in the agJCemeot. 
9. Rehabilitate Own Operate and Maintain Agreement : An agreement whereby 
an existing projett is vested in a persoo to renovate, opeiate and maintain. 1 he ~eloper 
shall be permitted to charge user charges as specified in the agreement. · . . ., 
10. Service Contract Agreement : An a;greement ·whereby a person undertakes to 
provide services to the StateGoveriimeot, a Gownnnent ag<incy or, a specified Govcmment 
agency for a specified period. The State Government, a Government agency or, as the 
case may be, a specified Govermnent agency shall pay him an amount according to the 
agreed schedule. 
Ji . Supply Operate and Transfer Agreement :An agreement whereby a person 
supplies to the State Govermneot. a Government agency or a specified Govermneot 
agency the equipments and machinery for a project and undertakes to operate the project 
for a period and consideration specified .in the agreement. During the operatioo of the 
project, he shall undertake to' ttain employees of the State Government, the Government 
agency or, as the case may be, tbe specified Go"-ernmeat agency to operate the project. 
12 . Joint Jimture Agreement :An agreement whereby tbe State Government, a 
Governmeot agency or a specified Govermnent agency enters into an agreement With a 
develo:ier to jointly finance, construct, operate and maintain a project for a period specified 
in the agreement after the expiry of which the project is required to be transferred to the 
State Govefn.ment, the Government agency or, as the case may be, the specified 
Government agency. . 
GOVERNMENT CENTRAL PRESS. GANDHINAGAR. 
•· 
' 

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