The Himachal Pradesh Infrastructure Development Act, 2001

THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT 
ACT, 2001  
ARRANGEMENT OF SECTIONS 
Sections: 
CHAPTER-I 
PRELIMINARY  
1.  Short title, extent, scope and commencement.  
2. Definitions. 
CHAPTER-II 
ESTABLISHMENT AND CONSTITUTION OF THE 
BOARD  
3. Establishment and incorporation of the Board. 
4. Headquarter of the Board. 
5. Constitution of Board. 
6. Term of office of members. 
7. Filling up of casual vacancies. 
8. Meetings of Board. 
9. Temporary association of persons with Board. 
10. Constitution of Committees. 
11. Powers of Chairperson, Chief Executive Officer and 
Committees. 
12. Appointment of officers and other employees of the Board. 
13. Acts and proceedings of Board presumed to be va lid. 
CHAPTER-III  
FUNCTIONS OF BOARD 
14. Functions of Board. 
CHAPTER-IV 
PROCEDURE FOR PERFORMANCE OF FUNCTIONS 
OF THE BOARD.  
15. Procedure for identifying Projects. 
16. Parameters for concession agreement or arrangem ent. 
17. Procedure for implementing project development.  
18. Coverage of risks in concession agreement or ar rangement. 
19. Board to form entities for project implementati on. 
2  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT A CT, 2001 
20. Procedure for inviting private sector participa tion in 
development projects. 
21. Fee. 
22. Procedure to raise resources. 
CHAPTER-V 
FINANCE, ACCOUNTS, AUDIT AND ANNUAL REPORT 
23. Fund of Board. 
24. Additional Capital and Grants to the Board by t he Government. 
25. Borrowing Power of the Board. 
26. Accounts and Audit. 
27. Annual Report. 
CHAPTER-VI 
MISCELLANEOUS  
28. Winding up of the Government Owned Companies an d transfer 
of assets and liabilities to the Board. 
29. Members, officers and servants to be public ser vants. 
30. Protection of action taken in good faith. 
31. Arbitration. 
32. Power to make regulations. 
SCHEDULE-I  
SCHEDULE-II 
THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT 
ACT, 2001  
(ACT NO. 1 OF 2002) 
1 
(Received the assent of the Governor on the 23 rd  January, 2002 and 
published both in Hindi and English in the Rajpatra , Himachal Pradesh 
(Extra-ordinary), dated 24 th  January, 2002, pp. 3895-3924.) 
An Act to provide for a framework for participation  by persons other 
than the State Government and Government agencies i n 
financing, construction, maintenance and operation of 
infrastructure projects and to raise resources on b ehalf of the 
State Government for infrastructure development and  for that 
purpose to establish a Board and to provide for the  matters 
relating thereto .  
                                                 
1. Passed in Hindi by the Himachal Pradesh Vidhan S abha. For Statement of 
Objects and Reasons see the Rajpatra, Himachal Prad esh (Extra-ordinary), dated 
21 st  December, 2001, pp. 3671 and 3687. 
THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 3 
BE it enacted by the Legislative Assembly of the Stat e of Himachal 
Pradesh in the Fifty-second Year of the Republic of India, as follows:-  
CHAPTER-I 
PRELIMINARY  
1. Short title, extent, scope and commencement .- (1) This Act may 
be called the Himachal Pradesh Infrastructure Development Act, 2001.  
(2) It extends to the whole of the State of Himachal Pradesh.  
(3) It shall apply to such infrastructure projects as are implemented by 
a Government agency through private sector particip ation under the 
provisions of this Act and fall in the category of infrastructure projects 
specified in Schedule-I and such other infrastructu re projects as are notified 
by the State Government, by notification, from time to time.  
(4) It shall come into force on such date 1 as the State Government 
may, by notification, in the Official Gazette, appoint.  
2. Definitions .- In this Act, unless the context otherwise requires,-  
(a) "Act" means the Himachal Pradesh Infrastructure  
Development Act, 2001;  
(b) "Board" means the Himachal Pradesh Infrastructu re 
Development Board established under section 3 of this Act; 
(c) "Capital" means the Capital for the time being raised or 
authorised to be raised for the purposes of the Board;  
(d) "concession agreement or arrangement" means a c ontract of 
the nature specified in Schedule-II between a developer and 
the Government or a Government agency relating to a  
project;  
(e) "developer" means a person with whom a concessi on 
agreement or arrangement is entered into by the 
Government or a Government agency;   
(f) "escrow account" means a bank account in which cash is 
deposited or from which cash is withdrawn in such m anner 
as specified in the concession agreement or arrangement; 
(g) "Financial year" means the period in respect of  which any 
annual accounts of the Board is laid before it, whe ther that 
period is a year or not;  
(h) "Government or State Government" means Governme nt of 
Himachal Pradesh;  
                                                 
1. Act came into force from 28 th  day of January, 2002 vide Notification No. Fin. IF -
(C) 45-1/99, dated 28 th  January, 2002, published in the Rajpatra, Himachal  
Pradesh (Extra-ordinary), dated 28 th  January, 2002, pp. 3935-3936. 
4  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT A CT, 2001 
(i) "Government agency" means a Government Departme nt or 
a Corporation or a body owned or controlled by the 
Government or an authority established by or under any law 
and includes a local authority; 
(j) “infrastructure project” means facilities and s ervices 
provided by a project, specified in Schedule-I; 
(k) "investment" means preliminary and preoperative  expenses, 
capital expenditure, lease on land and equipment, i nterest 
during construction, administrative expenses, expen diture 
on acquisition of an existing infrastructure projec t owned 
by the State Government or a Government agency, all  
operating and maintenance expenses including expens es 
incurred on recovery of user levies; 
(l) "local authority" means a Municipal Corporation , 
Municipal Council, Nagar Panchayat, Zila Parishad, 
Panchayat Samiti and Gram Panchayat;  
(m) "member" means a member of the Board including 
Chairman and Chief Executive Officer;  
(n) "private sector participant" means any person o ther than 
Central Government or State Government or Governmen t 
Agency or any joint venture between Central Governm ent 
or State Government Departments or any Statutory Body or 
Authority or Local Authority or any Corporation or 
Company in which Central Government or State 
Government or Government Agency, Statutory Body or 
Authority or local body is holding not less than 51 % paid 
up share capital; 
(o) "private sector participation" means investment  by a private 
sector participant in an infrastructure project of the 
Government agency or the local authority in the State;  
(p) "project" means project specified in Schedule-I ;  
(q) "regulations" means regulations made by the Boa rd under 
this Act; 
(r) "Schedule" means Schedule appended to this Act;  
(s) "Scheduled Bank" shall have the same meaning as  assigned 
to it in clause (e) of section 2 of the Reserve Ban k of India 
Act, 1934 (2 of 1934);  
(t) "seal" means the common seal of the Board; 
(u) "special purpose vehicle" means an independent entity set 
up with the limited special purpose;  
(v) "State Government guarantee" means a guarantee given by 
the State Government to any agency;  
THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 5 
(w) "user charges" means the amount charged for the  use of 
facilities and services provided by the developer; and  
(x) "user levies" means the right or authority gran ted to the 
developer by the Government agency or the local aut hority 
to recover investment and fair return on investment  and 
shall include toll, fee, charge or benefit by any name.  
CHAPTER-II  
ESTABLISHMENT AND CONSTITUTION OF THE BOARD  
3. Establishment and incorporation of the Board.- (1) As soon as 
may be after the commencement of this Act, the Gove rnment may, by 
notification in the Official Gazette, establish a B oard to be called the 
Himachal Pradesh Infrastructure Development Board w ith effect from such 
date as may be specified in the notification.  
(2) The Board shall be body corporate by name afore said having a 
perpetual succession and a common seal with power, subject to the 
provisions of this Act, to acquire, hold and dispos e off property both 
movable and immovable and to contract and shall by the said name sue and 
be sued.  
4. Headquarter of the Board .- The Headquarter of the Board shall 
be at Shimla.  
5. Constitution of Board .- The Board shall consist of,-  
(a) the Chief Secretary to the Government who shall  be the 
Chairperson ; 
(b) the Finance Secretary or any State Government o fficer of 
other equivalent rank shall be the Chief Executive Officer, to 
be appointed by the State Government, by notification; 
(c) not exceeding ten other members, which shall in clude 
Secretaries to the Government in the Departments of  Power, 
Public Works, Irrigation and Public Health, Urban 
Development, Town and Country Planning, Tourism, 
Industry, Finance and Planning, to be appointed by the 
Government, by notification.  
6. Term of office of members .- Every member shall hold office 
during the pleasure of the State Government.  
7. Filling up of casual vacancies .- If any vacancy arises in the Board 
or in any committee thereof by reason of death, res ignation or otherwise, the 
same shall be filled up by the Government as soon as possible.  
8. Meetings of Board .- (1) The Board shall meet at such time and 
place and shall observe such rules of procedure in regard to transaction of its 
business at its meeting (including the quorum at su ch meeting) as may be 
provided by regulations. 
6  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT A CT, 2001 
(2) The Chairperson, or, if for any reason, he is u nable to attend any 
meeting, any other member chosen by the members pre sent at the meeting, 
shall preside over the meeting. 
(3) All questions which come up before any meeting of the Board 
shall be decided by a majority of the votes of the members present and voting, 
and, in the event of an equality of votes, the Chai rperson, or in his absence, 
the person presiding, shall have and exercise a second or casting vote.  
9. Temporary association of persons with Board .- The Board may 
associate with itself any person whose assistance o r advise is required in 
performing any of its functions under this Act.  
10. Constitution of Committees .- The Board may constitute an 
Executive Committee and such other committees consi sting of such number 
of members for performing such of its functions, as  may be provided by 
regulations.  
11. Powers of Chairperson, Chief Executive Officer and 
Committees.- The Chairperson, Chief Executive Officer and Commit tees of 
the Board shall exercise such powers as may be provided by regulations.  
12. Appointment of officers and other employees of the Board .- 
(1) The Board may appoint such officers and other e mployees, as it may 
consider necessary for the efficient discharge of its functions.  
(2) The mode of recruitment, salary and allowances and other 
conditions of service of officers and other employe es of the Board shall be 
provided by regulations. 
13. Acts and proceedings of Board presumed to be valid . No act or 
proceeding of the Board or of any of its committees shall be invalid merely by 
reason of- 
(a) any vacancy therein or any defect in the consti tution thereof, 
or  
(b) any irregularity in its procedure not affecting  the merit of the 
case. 
CHAPTER-III  
FUNCTIONS OF BOARD  
14. Functions of Board .- The Board shall,-  
(a) enable the private sector participation in infr astructure 
projects specified in Schedule-I on any of the conc ession 
agreement or arrangement specified in Schedule-II; 
(b) identify suitable projects for private sector p articipation; 
(c) undertake the development of projects for priva te sector 
participation on its own or in association with age ncies 
engaging in the business of project development or in 
THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 7 
pursuance of any agreement entered into for this pu rpose by 
the Government with any person ;  
(d) consider proposals to give exclusive rights to any person to 
develop projects ;  
(e) formulate the terms of any agreement or arrange ment for 
project development and any concession agreement or  
arrangements required for the implementation of pro jects 
developed under clauses (c) and (d);  
(f) invite private sector participation in respect of projects 
developed as per clauses (c) and (d), as per the pr ocedure laid 
down in this Act and make appropriate recommendatio ns to 
the Government in the matter ;  
(g) administer and manage a fund for the purpose of  undertaking 
or assisting in project development for meeting any  financial 
commitments envisaged under any concession agreemen t or 
arrangement and for the performance of its other fu nctions 
including its own administrative expenditure and to  secure 
contributions to this fund in the form of share capital or grants 
or loans from Government and other sources includin g 
bilateral and multilateral donor agencies, financial institutions 
and commercial banks;  
(h) advise the Government or a Government Agency on  all 
matters of policy relating to private sector partic ipation in 
infrastructure projects and their mode of implement ation 
including issues relating to privatisation or disin vestment of 
the existing infrastructure assets of the public sector ;  
(i) co-ordinate the implementation of and monitor t he progress 
of infrastructure projects undertaken in the State of Himachal 
Pradesh under this Act;  
(j) act as a special purpose vehicle to raise resou rces to finance 
development expenditure under the State Plan on beh alf of 
the State Government and also to discharge obligati ons on 
this account on behalf of the State Government from  revenue 
and other receipts accruing to the State Government  from 
such development expenditure; and 
(k) perform such other functions as may be entruste d to it by the 
State Government, by notification.  
CHAPTER-IV 
PROCEDURE FOR PERFORMANCE OF FUNCTIONS OF 
THE BOARD  
15. Procedure for identifying Projects .- (1) For the identification of 
projects for private sector participation in infras tructure development in 
pursuance of section 14, the Board may consider sug gestions from 
8  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT A CT, 2001 
Government agencies or persons engaged in the busin ess of developing or 
implementing infrastructure projects.  
(2) The Board may itself conduct or have conducted on its behalf such 
preliminary investigations as are necessary to esta blish the prima facie 
suitability of the project for private sector parti cipation within the parameters 
for a concession agreement or arrangement given in section 16 in identifying 
the projects which can be developed for private sector participation.  
(3) The Government agencies may opt to undertake th e development 
of such identified projects on their own or with the assistance of the Board.  
16. Parameters for concession agreement or arrangem ent .- The 
following parameters for a concession agreement or arrangement shall define 
the suitability of a project for inviting private sector participation, namely:- 
(a) the concession agreement or arrangement may pro vide for the 
transfer of a project taken up with private sector participation, 
to the Government or its agencies not later than a period of 99 
years from the date of agreement or arrangement of 
implementation of a project ;  
(b) the concession agreement or arrangement may pro vide for 
financial participation by the Government or its ag encies in 
any project up to a maximum of 20% of the project c ost and 
the actual nature and quantum of this financial par ticipation 
shall be based on the processes of due diligence an d 
competitive bidding provided in the regulations framed by the 
Board for this purpose;  
(c) the concession agreement or arrangement may pro vide for 
such incentives to the project as are admissible un der the 
concerned sectoral policy of the Government to prom ote 
private sector participation or investment ;  
(d) the concession agreement or arrangement may pro vide for 
guarantees by the State Government or Government ag encies 
in respect of liability of any Government agency wi th regard 
to a project;  
(e) the concession agreement or arrangement may pro vide for the 
opening and operation of an escrow account with res pect to 
any payments to be made to the project by the State  
Government or any Government agency or any other pe rson 
or persons; 
(f) the concession agreement or arrangement may pro vide for 
appropriate modes and terms for transfer of Governm ent land 
and acquisition of private land for the purposes of  project 
implementation ;  
(g) the concession agreement or arrangement may pro vide for 
right to develop land for such purposes as are admi ssible 
under the relevant statute; and  
THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 9 
(h) the concession agreement or arrangement may pro vide for the 
levy of the charges for the facilities or services provided by 
the project.  
17. Procedure for implementing project development .- (1) In 
deciding the manner in which an identified project is to be developed for 
private sector participation from amongst the optio ns available under section 
14, the Board shall have regard to its own capabili ties, offers available for 
collaboration by other agencies and any agreement o r arrangement entered 
into by the Government for this purpose with any pe rson and form such 
special purpose vehicles, companies or entities on its own or as joint ventures 
as may be prescribed by regulations. 
(2) In considering a proposal for project developme nt by private 
sector participation under section 14, the Board shall ensure that any exclusive 
right for project development conferred on such per sons is limited to a 
specified period.  
18. Coverage of risks in concession agreement or ar rangement .- 
(1) The Board shall ensure that any concession agre ement or arrangement 
formulated by the Board under section 14 is in cons onance with the 
parameters given in section 16 and contains all nec essary covenants to take 
care of the risks associated with the concerned project.  
(2) The concession agreement or arrangement shall s trive for the 
optimum contractual structure with regard to the ne ed to balance the risks of 
stakeholders, maximize efficiency and minimize cost s as may be prescribed 
by regulations.  
19. Board to form entities for project implementati on .- In order to 
ensure implementation of a project developed under this Act, the Board may 
form such special purpose vehicles, companies or en tities on its own or as 
joint ventures as are deemed necessary for this pur pose, keeping in view the 
need to comply with the conditions outlined in sect ion 16 with regard to the 
involvement of Government or its agencies.  
20. Procedure for inviting private sector participa tion in 
developed projects .- (1) In inviting private sector participation and  making 
recommendations to the Government under section 14, the Board shall follow 
a selection process, which adheres to accepted norms of transparency and cost 
effectiveness and the Board shall frame the regulat ions to lay down the 
situations where competitive bidding method or othe r methods shall be 
followed.  
(2) In making a recommendation with regard to a pri vate sector 
participant with respect to a project developed und er section 14, the Board 
may recommend grant of first right of refusal to th e person developing the 
project, however, such first right of refusal shall  be granted only on the basis 
of an appropriate procedure, which adheres to accepted norms of transparency 
and cost effectiveness.  
10  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 
21. Fee .- (1) The Board may charge such fee, for carrying out any of 
its functions, as prescribed by regulations or in t erms of any agreement or 
arrangement entered into by it.  
(2) The Board may also permit any person developing a project under 
section 14 to receive a similar amount as fee, if t he project developed by such 
a person is undertaken by any other person.  
22. Procedure to raise resources .- (1) For raising of resources for 
financing development expenditure under the State P lan in pursuance of 
section 14, the Board shall make procedure consiste nt with the need to ensure 
transparency and cost effectiveness.  
(2) The Board may take the assistance of recognised  financial 
institutions and reputed arrangers in performing this function.  
CHAPTER-V  
FINANCE, ACCOUNTS, AUDIT AND ANNUAL REPORT  
23. Fund of Board .- (1) The Board shall have its own fund and all 
receipts and sums which may, from time to time, be received by the Board 
from the State Government or any other person or ag ency and the amount 
charged by the Board under section 21, shall be cre dited thereto and all 
payments of the Board shall be made therefrom. 
(2) The Board shall have the power, subject to the provisions of this 
Act, to spend such sums as it thinks fit to cover a dministrative expenses and 
for the performance of its functions and such sums shall be treated as 
expenditure payable out of the fund of the Board.  
(3) All money standing at the credit of the Board w hich cannot 
immediately be applied as provided in sub-section ( 2), shall be deposited in 
the Scheduled Bank or Banks or in the Public Accoun t of the State 
Government or may be deployed in such other manner and subject to such 
conditions as are contained in regulations framed b y the Board for this 
purpose.  
24. Additional Capital and Grants to the Board by t he 
Government .- The Government may, after due appropriation made  by 
Legislature by law in this behalf,- 
(a) provide any capital, over and above the capital  arising out of 
the winding up of the Government Owned Companies, t hat 
may be required by the Board for the discharge of i ts 
functions under this Act or for any purpose connect ed 
therewith on such terms and conditions as the Gover nment 
may determine; and  
(b)  pay to the Board, on such terms and conditions  as the 
Government may determine, by way of loans or grants  such 
sums of money as the Government may consider necess ary 
for the efficient discharge by the Board of its fun ctions under 
this Act.  
THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 11 
25. Borrowing Power of the Board .- (1) The Board may, with the 
consent of the Government or in accordance with the  terms of any general or 
special authority given to it by the Government, bo rrow money from any 
source by the issue of bonds, debentures, loans or such other instruments as it 
may deem fit for discharging all or any of its functions under this Act.  
(2) The Government may guarantee in such manner as it thinks fit for 
the repayment of the principal and the payment of i nterest thereon with 
respect to the loans borrowed by the Board under sub-section (1). 
(3) Subject to such limits as the Government may, f rom time to time, 
lay down, the Board may borrow temporarily by way o f overdraft or 
otherwise such amounts as it may require for discha rging its functions under 
this Act.  
26. Accounts and Audit .- (1) The accounts of the Board shall be 
prepared and maintained in such form and in such manner as may be provided 
by regulations. 
(2) The Board shall cause to be prepared for each F inancial year an 
annual statement of accounts in such form as may be provided by regulations. 
(3) The accounts of the Board shall be audited by a n auditor duly 
qualified to act as an auditor of Companies under s ection 226 of the 
Companies Act, 1956 (1 of 1956). 
(4) The auditor shall send copy of the report toget her with 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 State Government. 
(5) The State government shall cause the audit repo rt together with 
audited copy of accounts to be laid before the Stat e Legislature, as soon as 
may be, after the receipt of the same under sub section (4). 
27. Annual Report .- (1) The Board shall during each Financial year 
prepare in such form and at such time as may be pro vided by regulations, an 
annual report giving a true and full account of its activities during the previous 
Financial year and an account of the activities lik ely to be undertaken by it in 
current Financial year and copies of such report sh all be forwarded to the 
State Government. 
(2) The State Government shall cause every such rep ort to be laid 
before the State Legislature, as soon as may be, af ter the receipt of the report 
under sub-section (1).  
CHAPTER-VI  
MISCELLANEOUS  
28. Winding up of the Government Owned Companies an d 
transfer of assets and liabilities to the Board .- (1) The Government Owned 
Companies shall be wound up in accordance with the provisions of the 
Companies Act, 1956 (1 of 1956). 
12  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 
(2) Subject to the provisions of Companies Act, 195 6 (1 of 1956), 
from such date as the State Government may, by noti fication in the Official 
Gazette, appoint,-  
(i) all properties and other assets vested in the G overnment 
Owned Companies, immediately before such date, shal l vest 
in the Board; 
(ii) all debts, obligations and liabilities incurre d, all contracts 
entered into and all matters and things engaged to be done by, 
with, or for the Government Owned Companies, immedi ately 
before such date, shall be deemed to have been incu rred, 
entered into and engaged to be done by, with or for the Board;  
(iii) all non-recurring expenditure incurred by Gov ernment Owned 
Companies up to such date and declared to be capita l 
expenditure by the Government Owned Companies shall , 
subject to such terms and conditions as may be determined by 
the Government, be treated as the capital provided by the 
Government to the Board; 
(iv) all sums of money due to the Government Owned 
Companies, immediately before such date, shall be deemed to 
be due to the Board;  
(v) all suits and other legal proceedings institute d or which could 
have been instituted by or against the Government O wned 
Companies, immediately before such date, may be con tinued 
or instituted by or against the Board;  
(vi) all the employees holding any office under the  Government 
Owned Companies, immediately before such date, shal l be 
treated as employees of the Board and shall hold of fice in the 
Board on the same terms and conditions of service w hich 
were applicable to them.  
(3) If any dispute or doubt arises as to which of t he properties, rights 
or liabilities of the Government Owned Companies transferred to the Board or 
as to which of the employees serving under the Gove rnment Owned 
Companies are to be treated as employees of the Boa rd, under this section, 
such dispute or doubt shall be decided by the Government in consultation with 
the Board and the decision of the Government shall be final.  
Explanation .- For the purpose of this Act, the expression 
"Government Owned Companies" shall mean the Himachal Pradesh Road and 
Other Infrastructure Development Corporation Limited and Himachal Pradesh 
Health Systems Corporation Limited incorporated und er the Companies Act, 
1956 (1 of 1956). 
29. Members, officers and servants to be public ser vants .- All 
members, officers and servants of the Board shall, while acting or purporting 
to act in pursuance of the provisions of this Act o r any regulations made 
THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 13 
thereunder, be deemed to be public servant within t he meaning of section 21 
of the Indian Penal Code, 1860 (45 of 1860).  
30. Protection of action taken in good faith .- No suit, prosecution or 
other legal proceeding shall lie against the Board or any member or officer or 
servant of the Board for anything which is in good faith done or intended to be 
done in pursuance of the provisions of this Act or regulations made 
thereunder.  
31. Arbitration .- All agreements or arrangements entered into by t he 
Board shall contain an arbitration clause providing that,-  
(a) all parties to the agreement shall submit to ar bitration any 
disputes which may arise between them out of the pr ovisions 
of the agreement or arrangement ;  
(b) the place of arbitration shall be at Shimla or any other place in 
India agreed to by the parties ; and  
(c) the disputes referred to in clause (a) shall be  decided in 
accordance with the law for the time being in force.  
32. Power to make regulations .- (1) The Board may make 
regulations not inconsistent with provisions of thi s Act for enabling it to 
discharge its functions under this Act.  
(2) In particular and without prejudice to the fore going power, such 
regulations may provide for all or any of the following matters, namely:-  
(a) the time and the place at which the Board shall  meet and rules 
of procedure, the Board shall observe in regard to transaction 
of its business at its meeting under section 8 ; 
(b) the committees which the Board may constitute, the number 
of members which the Executive Committee and other 
Committees may consist of and the functions of the Board 
which they may perform under section 10;  
(c) the powers of the Chairperson, Chief Executive Officer and 
Committees of the Board under section 11; 
(d) the mode of recruitment, salary and allowances and other 
conditions of service of officers and other employe es of the 
Board under sub-section (2) of section 12 ;  
(e) the manner of disinvestment of assets of any Go vernment 
agency under section 14;  
(f) to regulate competitive bidding under section 1 6;  
(g) to decide the manner in which an identified pro ject is to be 
developed for private sector participation under section 17 ;  
(h) the procedure for dealing with risks associated  with various 
infrastructure projects under section 18;  
14  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 
(i) the manner of competitive bidding or other meth ods to be 
followed under section 20;  
(j) fee to be charged under section 21;  
(k) the form and manner in which the accounts of th e Board shall 
be prepared and maintained under sub-section (1) of  section 
26;  
(l) the form in which an annual statement of accoun ts of the 
Board shall be prepared under sub-section (2) of se ction 26; 
and  
(m) the form in which and the time at which an annu al report of 
the Board shall be prepared under sub-section (1) o f section 
27.  
__________ 
SCHEDULE-I  
[See section 1 (3)]  
INFRASTRUCTURE PROJECTS  
1. State Highways including Roads, Bridges, Bye pas ses and 
related Road Infrastructure. 
2. Inland Waterways.  
3. Power including Power Generation, Transmission a nd 
Distribution System project. 
4. Water projects including dams, water storage, wa ter supply and 
sewerage system projects.  
5. Gas pipelines or related facilities.  
6. Urban Infrastructure including shopping and comm ercial 
complexes, parking lots, solid waste management and  
transportation facilities etc.  
7. Tourism project including resorts, adventure and  winter sports 
facilities, cable cares and ski lifts and entertain ment complexes 
etc.  
8. Industrial estates, industrial areas, parks incl uding development 
of parks offering facilities to projects like infor mation 
technology and biotechnology etc.  
9. Satellite townships offering general purpose rea l estate or 
specifically focussed on provision of education, health, resort or 
entertainment facilities.  
10. Any other infrastructure projects, notified by the State 
Government.  
__________ 
 
THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 15 
SCHEDULE-II 
[See sections 2 (c) and 15 (a)]  
NATURE OF CONCESSION AGREEMENT OR 
ARRANGEMENT   
The following concession agreement or arrangement w ith variations 
and combinations may be arrived at by the Governmen t agency or the local 
authority for undertaking infrastructure project wi th private sector 
participation. 
1. Build Own /Operate and Transfer Agreement or Arrang ement .- An 
agreement or arrangement whereby the developer unde rtakes to finance, 
construct, maintain and operate a project and where by such project is to vest 
in the developer for a specified period. During the  period of operation of the 
project by developer, he may be permitted to charge user charges as specified 
in an agreement or arrangement. The developer is re quired to transfer the 
project to the State Government or a Government age ncy after the expiry of 
the period of operation.  
2. Build Own Operate and Maintain Agreement or Arrange ment .- An 
agreement or arrangement whereby a developer undert akes to finance, 
construct, operate and maintain a project and where by such project is to vest 
in developer for a specified period. During the per iod of operation of the 
project, he may be permitted to charge user charges  as specified in the 
agreement or arrangement.  
3. Lease Management Agreement or Arrangement .- An agreement or 
arrangement whereby the State Government or a Gover nment agency leases 
a project owned by the State Government or the Gove rnment agency to the 
person who is permitted to operate and maintain the  project for the period 
specified in the agreement or arrangement and to ch arge user charges 
therefor.  
4. Rehabilitate/Operate and Transfer Agreement or Arrangement .- An 
agreement or arrangement whereby an existing projec t is vested in a person 
to renovate, operate and maintain for the period specified in the agreement or 
arrangement after the expiry of which the project is required to be transferred 
to the State Government or a Government agency. Dur ing the period of 
operation of the project by the developer, he may be permitted to charge user 
charges as specified in the agreement or arrangement.  
5. Rehabilitate Own Operate and Maintain Agreement or 
Arrangement .- An agreement or arrangement whereby an existing project is 
vested in a person to renovate, operate and maintai n. The developer shall be 
permitted to charge user charges as specified in th e agreement or 
arrangement.  
6. Management Agreement or Arrangement .- An agreement or 
arrangement whereby the State Government or the Gov ernment agency 
entrusts the operation and management of a project to a person for the period 
specified in the agreement or arrangement on paymen t of specified 
consideration. In such agreement, the State Governm ent or the Government 
16  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 
agency concerned may charge user charges and collec t the same either itself 
or entrust the collection for consideration to any person who shall after 
collecting the user charges pay the same to the Sta te Government or the 
Government agency.  
7. Service Contract Agreement or Arrangement .- An agreement or 
arrangement whereby a developer undertakes to provide services to the State 
Government or a Government agency for the specified  period. The State 
Government or Government Agency shall pay him an am ount in accordance 
with the agreement or arrangement. 
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