LexThe Kerala Infrastructure Investment Fund Act,1999 (Act 4 of 2000).
Kerala · state statute
Open in Lexace · Ask the AI about this actTHE KERALA INFRASTRUCTURE INVESTMENT FUND
ACT, 1999
(Act 4 of 2000)
CONTENTS
Preamble
Sections
1. Short title, Extent and Commencement
2. Definitions
3. Kerala Infrastructure Investment Fund Scheme
4. Constitution of Board
5. Term of Office of Members
6. Power and Functions of the Board
7. Contribution to the Fund
8. Power of the Board to borrow and lend
9. Guarantee by Government of loans
10. Appointment of officers and staff
11. Mode of recovery of money due to Board
12. Members of Board etc. to be public servants
13. Protection for acts done in good faith
14. Power of Government to issue directions
15. Accounts and Audit
16. Annual report and audited statement of accounts
17. Power to order inquiry
18. Dissolution of the Board
19. Bar of jurisdiction of Civil Courts
20. Removal of difficulties
21. Modification of the scheme
22. Repeal and savings
Schedule.
THE KERALA INFRASTRUCTURE INVESTMENT FUND
ACT, 1999
(Act 4 of 2000)
An
Act
to provide for the constitution of a fund for investments in the infrastructure
projects in the State and for matters connected therewith or incidental thereto.
Preamble —WHEREAS it IS expedient to constitute a fund for investments in the
infrastructure projects in the State and for matters connected therewith or incidental
thereto.
BE it enacted in the Fiftieth Year of the Republic of India as follows:—
1. Short title , extent and commencement —(1) This Act may be called the
Kerala Infrastructure Investment Fund Act, 3999.
(2) It extends to the whole of the Stale of Kerala
✓
(3) It shall be deemed to have come into force on the 11th day of
November, 1999.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) ‘Board’ means the Kerala Infrastructure Investment Fund Board
constituted under section 4;
*(aa) “concessionai re” means the private sector participant which has
entered into a public-private partnership;
(ab) “concession agreement” means an agreement entered into between a
public agency and a private sector participant for and in respect of a public -
private partnership;
(ac) “detailed project study” means a detailed study of the project made
after the preliminary decision for investment, in order to ascertain the capital
cost, technological parameters, description of the technology to be used,
technical specifications, plan schedule to assist the financial investment, plan
for implementation of the project and such other information as may be
specified in the Scheme;
(ad) “Executive Committee” means the committee constituted under
section 6B;
* Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016
(ae) “feasi bility study” means a preliminary study to assess the
technical and financial viability and to assess the social and environmental
impact of a project for making a decision for investment which shall include
the demand for services, appropriate technology to be adopted, capital cost,
time required for implementation and such other information as may be
specified in the Scheme.”
(b) ‘Financial assistance’ means the types of assistance speci fied in the
Scheme;
(c) ‘Fund’ means the Kerala Infrastructure Investment Fund established
under section 3 and the scheme;
(d) ‘Fund Manager’ means the Fund Manager of the Board;
(e) ‘Government’ means the Government of Kerala;
*(ea) “Government Company” means any company in which not less
than fifty one per cent of the paid -up share capital is held by the Government
or Central Government or other State Governments and includes a company
which is a subsidiary of any Government Company;
(eb) “Infrastructure” means the assets or services in any one or more of
the sectors specified in the Second Schedule”;
**(f) ‘Infrastructure projects’ include projects in the sectors specified in the
second Schedule and multipurpose projects comprising of one or more of the
sectors specified therein”;
(g) ‘Local Self Government Institutio n’ means a Panchayat at any level
constituted under the Kerala Panchayat Raj Act, 1994 (13 of 1994), or a
Municipality constituted under the Kerala Munici pality Act, 1994 (20 of
1994);
(h) ‘Other undertakings’ means Public Companies established
in the State under the Companies Act, 1956 (Central Act 1 of 1956) in
joint sector, where the investment of the Government is not less than *#
twenty six per cent of the total paid up share capital, or societies established
under Travancore -Cochin Literacy, Scientific a nd Charitable Societies
Registration Act, 1955 (XII of 1955) or the Societies Registration Act, 1860
(Central Act 21 of 1860) and where Govern ment, Local Self Government
Institutions of any Public Sector Under taking, as the case may be, have not
less tha n * @ twenty six per cent of interest in its assets, ownership and
management;
* Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016
** Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016
*# Vide Amendment Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016 the words “forty per cent” substituted with “twenty six per cent”.
*@ Vide Amendment Act 15 of 2016 , notification no. 15841/Leg. A1/2016/Law dated
05.11.2016 the words “fifty per cent” substituted with “twenty six per cent”.
(i) ‘Public Sector Undertakings ’ means any Government Com pany
established in the State under the Companies Act, 1956 (Central Act 1 of
1956) or a Co -operative Society registered or deemed to have been
registered under the Kerala Co -operative Societies Act, 1969 (21 of
1969) where the Government holds not less than *fifty
one per cent of the share capita l, and substantial control over its
management and includes public undertakings established under a
statute;
**(ia) “private sector participant” means any person or entity other than
a public agency or the Central Government or a public sector
undertaking of the Central Government;
(ib) “project” means an Infrastructure Pr ojects and includes both
physical and social Infrastructure projects;
Explanation:- For the purpose of this clause ‘physical infrastructure
projects’ means projects primarily intended for creation of tangible
assets and ‘social infrastructure projects’ means intangible social assets
such as schools, social services etc.
(ic)“public-private partnership” means an arrangement between a
public agency and a private sector participant for providing
infrastructure which includes investment, design, development,
construction, maintenance or operation undertaken by the private sector
participant, where in risks a reallocated between them such that the
private sector participant takes the risks beyond the stage of design,
construction and the payment for the services are performance linked, in
the form of user charges, annuities or unitary payment;
(id)"public agency" means any department of the Government or the
Central Government or other State Governments or public sector
undertaking, Government Company, statutory board formed by the
Government or the Central Government or other State Governments,
Local Self Government Institutions, co-operative institution, university,
any society or trust formed, owned or controlled by the Government or
the Central Government or other State Governments";
(j) ‘Schedule’ means the Schedule to this Act;
(k) ‘Scheme’ means the scheme framed under this Act;
*#(ka)"Special Purpose Vehicle" means the Public Agency, Pub lic
Sector Undertaking or Public-Private Partnership formed for executing
any work financed by the Board;
(kb) ‘sponsoring agency’ means the public agency designated by the
Board to implement a project through public-private partnership”;
* Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
** Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
*# Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
(l) ‘State’ means the State of Kerala;
*(la) "State support" means the support extended by the Government to a
concessionaire, which may include, -
(i) subsidy or capital grant not exceeding such proportion of the
cost of the project, as may be specified in the scheme;
(ii) equity;
(iii) loans;
(iv) guarantee by the Government;
(v) opening and operation of escrow account:
(vi) conferment of right to develop any land;
(vii) incentives in the form of exemption from the payment of,
or deferred payment of, any tax or "fees levied under any
law or such other incentives, as may be specified, in the
Scheme."
(m) ‘Undertakings’ means public sector undertakings or other
undertakings,
**(ma) "user levy" means user charge or fee or any other amount, by
what ever name be called, payable by the user of an infrastructure
facility.".
(n) ‘Year’ means the financial year,
3. Kerala Infrastructure Investment Fund Scheme — (1) The Government
may, by not ification in the Gazette, f rame a scheme to be called the ‘Kerala
Infrastructure Investment Fund Scheme ’ for the establishment of a fund under
this Act for investments in the infrastructure projects of the State and there
shall be established, as soon as may be after the framing of the, scheme, a fund
in accordance with the provisions of this Act and the scheme.
*#(1A) The fund corpus shall comprise of the net total of the amounts
specified in sub-section (2) hereunder.;
* Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
** Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
*# Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
(2) There shall be credited to the fund, —
*(a) The amounts released to the Board from the budget allocation
under section 7;
(b) the amount borrowed by the Board under section 8;
(c) grants or loans or advances made by ** any institution;
(d) any amount raised by the Board from other sources to augment
the resources of the Board;
(e) any other amount which, under the provisions of the scheme,
shall be credited to the-fund.
(3) The fund shall vest in, and be administered by the Board constituted
under section 4 *#in such manner as may be specified in the scheme.
(4) The fund may be utilised for all or any of the following purposes,
namely. —
(a) to finance *@ or leverage investments in infrastructure
projects in the State;
(b) to provide financial assistance to public sector under
takings and other undertakings for their investments in
infrastructure projects;
(c) *%to redeem the bonds or debentures or any other
Financial instrument used to raise resources for the Fund
and to repay the loans availed from co-operative banks,
other commercial banks and any institution to
implement the infrastructure project
* Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
** Vide Act 15 of 2016 notification no. 15841/Leg. A1/2016/Law dated 05.11.2016, the
words “the Government or” omitted.
*# Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
*@ Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
*% Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated
05.11.2016.
*(ca) to finance or leverage investments and financial instruments relating to
land acquisitions for infrastructure projects and other Government
purposes;
(cb) to provide funding for projects that face significant funding barriers
because of the need to combine resources across multiple sectors or parts
thereof;
(cc) to provide direct loans advances and loan guarantees to eligible projects,
programmes of any legal entity or instrumentality including public or
other undertaking for their investments in infrastructure projects identified
by the State
(d) for implementation of any other purpose specified in the scheme.
**(5) All moneys specified in sub-section(2) other than money contributed by
Government under section7, shall be deposited with the approval of the
Board in a Nationalized Bank or in such other prudent investment:
Provided that any portion of the money contributed by the Government
under section7 may be deposited or invested in any Nationalized Bank or in
sovereign bonds of the Union or States or in such other prudent investment
other than in the State Treasury.
Explanation:- For the purpose of this sub-section, ‘prudent investment’ shall
mean those investments which carry the highest rating from the appropriate
regulatory body or credit rating agency for that class of investment.;
(6) Subject to the provisions of this Act, the scheme framed under sub-section (1)
may provide for all or any of the matters specified in sub-section (4) and in
the *# first schedule.
*@ (6A) The accounts of the Board shall be operated by the Fund Manager:
Provided that the Board may delegate the powers for operation of accounts to
one or more officers of the Board and may set appropriate financial limits as it
deems fit.
* Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
** Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
*# Vide Act 15 of 2016 notification no. 15841/Leg. A1/2016/Law dated 05.11.2016, the words
“schedule” substituted with “first schedule”.
*@ Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
(7) The scheme shall be laid, as soon as may be, after it is framed , before the
Legislative Assembly while it is in session fo r a total period of fourteen day s which
may be in one session or in two successive sessions, and if, befo re the expiry of the
session in which it is so laid or the session immediately following, the Legislative
Assembly makes any modification in the scheme, the scheme shall th ereafter have
effect only in such modified form, so howeve r that any such modi fication shall be
without prejudice to the validity of anything previously done under the scheme.
*(8) The Government shall lay before the State Legislative Assembly along with
the presentation of the Annual budget the following documents,
(a) a statement of the sources and application of the funds of the Board;
(b) a certificate from the Fund Trustee and Advisory Commission to the effect
that the funds of the Board have been deployed for the purposes intended and
that surplus funds have been managed as laid down under the provisions of
this Act.
**3A. Eligible projects. -( 1) Projects eligible for financial assistance from the Fund
shall be the projects referred to the Board by the Government and approved by the
Board.
(2) Eligible projects shall be of a value exceeding ₹ 100,00,00,000 (Rupees
One Hundred Crore) implemented by a public agency:
Provided that f or the purpose of assessing the value, projects not less than
Rupees Ten Cro re may be grouped into tranches, each of which has to satisfy the
stipulation on the value specified in sub-section (2):
Provided further that the Government may, by general or special order, apply
the provisions of this Act to any public-private partnership project:
Provided also that it shall not ap ply to an y project undertaken by the Central
Government or any public undertaking of the Central Government independently,
except as a joint venture with the State Government.
Explanation: - For the purpose of this sub -section, in the case of a public -
private partnership project, 'project value' means, where the private sector participant
is, -
* Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
** Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
(i) required to make capital investment, the value of the asset or facility to be
created including cost of land, if the cost of land is to be borne by the private s ector
participant; or
(ii) not required to make capital investment, the current replacement value of the
asset or facility, excluding land, w hose operation an d maintenance shall be the
responsibility of the private sector participant.
4. Constitution of Board.—(1) The Government may, by notification in the Gazette,
constitute with effect from such dale as may be specified therein, a Board to be
called “the Kerala Infrastructure Investment Fund Board” for the administration of
the fund and to supervise or carry out the activities financed from the fund
(2) The Board shall be a body corporate by the name afore said, having perpetual
succession and a common seal and shall by the said name sue or be sued.
*(2A) The headquarters of the Board shall be Thiruvananthapuram.;
**(3) The Board shall consist of the following members, namely: -
(a) Chief Minister : Chairperson
(b) Minister for Finance : Vice-Chairperson
(c) Vice-Chairman, State Planning : Member
Board
(d) Chief Secretary : Member
(e) Secretary (Law) : Member
(f) Secretary (Finance) : Member
(g) Secretary (Finance-Resources) : Member
(h) Seven independent members who
are experts, who have worked in an
institution of national repute in one
or more of the areas of Finance.
Banking, Economics : Members
(i) Chief Executive Officer : Member Secretary
* Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
** Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
Explanation: -For the purposes of the provisions of this Act the term
‘Secretary' shall denote Additional Chief Secretary, Principal Secretary, Secretary or
Special Secretary to Government, as the case may be;
*(4) The Board may, at the discretion, of the Chairperson seek the participation of
any other Minister or Secretary of any Department whose project is under
consideration of the Board for financing;
**
5. Term of office of mem bers. —(I) A member appointed under clause (h) of sub -
section (3) of section 4 shall hold office during the pleasure of the Government-
(2) Any member appointed under clause (h) of sub-section
(3) of section 4 may resign his member
ship by giving notice i n writing to the Government but shall continue in office
until his resignation is accepted by the Government
*# 5A. Meetings of the Board. - (1) The Board shall meet at such time and place
and shall observe such rules of procedure in regard to transac tion of business at its
meetings as may be specified in the Scheme.
(2) The Chairperson shall preside over the meetings of the Board. When the
chairperson of the Board is absent, the Vice -Chairperson shall preside over the
meetings. The Chief Executive Officer shall be the Convener of the Board meetings.
(3) Agenda of a meeting of the Board shall be decided by a majority of two -
third of the votes of the members present and voting and in case of any equality of
votes, the person presiding shall have a second or casting vote.
(4) The quorum for a meeting shall be eight and at least one independent
member shall attend the meeting.
(5) All investment decisions taken in the Board meetings in the absence of the
Chairperson shall be ratified by the Chairperson before implementation.
(6) The members of the Board may, with the permission of the Chairperson,
attend the meetings of the Board through video conferencing.
(7) No act or proceedings of the Board shall be invalid by reason only of the
Existence of any vac ancy amongst its members or any defect in the constitution
thereof.
* Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
** Vide Act 15 of 2016 notification no. 15841/Leg. A1/2016/Law dated 05.11.2016, sub-sections
(5) to (7) omitted.
*# Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
*6. Functions of the Board. -Subject to the provisions of this Act, the Board shall
have the following functions, namely: -
(a) Approve the selection of eligible projects for financial assi stance through
the Fund;
(b) Authorise the mobilization of resources for augmentation, maintenance and
utilization of the Fund;
(c) Approve the public agency which shall implement a project through public
sector mode or through a Public-Private Partnership;
(d) Co-ordinate the efforts of the Government, any public agency and
sponsoring agencies in matters regarding the development of the
infrastructure in the State including Public-Private Partnership projects;
(e) Identify sources of financing, and approve suitable modes of raising
resources;
(f) Identify bottlenecks in the Projects and recommend policy initiatives to
rectify the same;
(g) Formulate and recommend policies related to eligible projects so as to
ensure that project risks are identified and allocated between the
stakeholders;
(h) Perform such other functions as may be entrusted to it by the Government.
6A. General powers of the Board . - The Board shall, for the purpose of
carrying out its functions under this Act, have the following powers, namely: -
(a) To call upon any public agency or concessionaire or any person to
furnish information in regard to any project;
(b) To inspect or cause to inspect and monitor any Project and its
execution, operation and management;
(c) To regulate its own procedures;
(d) To approve proposal and inst ruments to mobilise and deploy
resources of the Fund;
* Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016.
(e) To sanction financial assistance based on eligibility norms as per the
Scheme;
(f) To approve the Investment Prospectus, operational guidelines and
oversight mechanism;
(g) To recover the amounts due to the Board from the assisted projects,
project authority, undertakings, public agency and concessionaire as
per the recovery schedule;
(h) To modify, revise or reschedule the recoveries as may be considered
appropriate;
(i) To opt for revenue recovery proceedings, if found necessary and
appropriate, against any of the assisted project, project authority,
undertakings, public agency and/or concessionaire in the interest of
the Board;
(j) To disburse all expenses relating to the administration of the Fund
including travel, i nterest on borrowings, fees, professional charges
and other expenses;
(k) To invest any surplus fund of the Board, as may be available from
time to time, in such manner as may be specified in the Act and in
the Scheme and also to realise the returns due from s uch
investments;
(l) to review on a periodic basis, the performance of any assisted
project, project authority, undertakings, public agency and/or
concessionaire receiving any assistance or loan from the Fund;
(m) To enter into Memorandum of Understanding or perfo rmance
contract with any assisted project, project authority, undertakings,
public agency and/or concessionaire under the purview of this Act,
on behalf of the Government;
(n) To enter into contracts on behalf of the Board;
(o) To exercise such powers and function s as may be specified in the
Scheme;
(p) To exercise such powers and perform such functions as may be
conferred on or entrusted to it by the Government for carrying out
the purposes of this Act;
(q) To do all acts necessary for and incidental to the carrying out o f the
function entrusted or delegated to it;
(r) To certify reports submitted to the State Legislature;
(s) To certify other publications of the Fund including investment
prospectus and tender documents.
6B. Executive Committee -( 1) There shall be an Executive Co mmittee which
shall exercise such powers and perform such functions as may be delegated to
it by the Board.
(2) The Executive Committee shall consist of the following members,
namely: -
(a) Minister for Finance : Chairperson
(b) Chief Secretary : Member
(c) Secretary (Law) : Member
(d) Secretary (Finance) : Member
(e) Secretary (Finance-Resources) : Member
(f) Three independent members
of the Board, to be nominated
by the Government : Members
(g) Chief Executive Officer : Member
(3) The Secretary to Government of the admin istrative department in
Government concerned with the project proposal placed before the Board for
consideration shall be a special invitee to the meetings of the Executive Committee.
(4) The decision making shall be by a majority of not less than two -thirds of
the members present and voting.
(5) The quorum for a meeting shall be five.
(6) The members of the Executive Committee may, with the permission of the
Chairperson, attend the meeting through video conferencing.
(7) The Chief Executive Officer shall be the Secretary of the Executive
Committee.
6C. Fund Trustee and Advisory Commission (FTAC). -(1) The Board shall by
general order, constitute with effect from such date as may be specified therein, a
Commission to be called the 'Fun d Trustee and Advisory Commission'
(2) The Commission shall comprise of not less than three and not more than
five members including a Chairperson.
(3) The term of office of the Commission shall be for a period of two years.
(4) The members shall h old office at their pleasure and shall not be remove d
by Government or the Board except on grounds of conviction on any criminal
charges involving moral turpitude or corruption by a court of law.
(5) The members shall be experts with proven experience at the nationa l or
international levels in an y of the fields of banking, financial regulation, financial
markets, administration or economics.
(6) The Boar d shall nominate one of the members as the Chairperson of the
Commission.
(7) The members of the Fund Tru stee and Advisory Commission may, with
the permission of the Chairperson, attend the meeting through video conferencing.
(8) The Commission shall meet once before September and Feb ruary of each
financial year and as many times, as it deems fit for carrying out its functions.
(9) The Chief Executive Officer shall be the Secretary to the Commission.
6D. Functions of Fund Trustee an d Advisory Commission. - (1) The
Commission shall act as the trustee of the fund and help to ensure that all
investments of the fun d serve the purpose and int ent of the Act and that there is no
diversion of funds of the Board.
(2) The Commission shall with the app roval of the majority of members issue
"Fidelity Certificate" every six months certifying t hat the application of funds an d
the investment of surplus funds are in conformity with the Act and Scheme.”
6E. Powers of Fund Trustee and Advisory Commission. -The Fund Trustee
and Advisory Commission shall have the following powers, namely: -
(a) to call for periodical reports from the Board;
(b) to call f or any documents in possession of Board necessary for the
discharge of its functions under this Act;
(c) to supervise the implementation of the conditions regarding creatio n of
the securities by the Board for the purpose of raising funds;
(d) to carry out such acts, as are necessary, for the protection of interest of
the holders of the securities issued by Board;
(e) to do all things necessary to resolve the grievances of the holders of the
securities issued by the Board;
(f) to ascertain that the funds nec essary to discharge the interest and
principal amount payable in respect of the securities is available with the Board as
stipulated under this Act;
(g) to ascertain that the funds so available with the Board are deployed in
prudential investments;
(h) to direct the Chief Executive Officer to convene meetings of the Fund
Trustee and Advisory Commission as many times, as it deems appropriate, in
addition to the two meetings specified in sub-section (8) of section 6C:
Provided that the Chairperson shall issue such directions either on his own or
at the request of at least two members.
6F. Project identification, prioritization and implementation. -
(1) On identifying or conceptualizing a proj ect to be developed, managed an d
operated in the State, the Board, o n its own accord or based on a study or survey
caused to be conducted or based on inputs received from a third party, may seek the
views of the public agency concerned thereon:
Provided that if the public agency does not furnish its views within thirty days
from the date of receipt of the said communication from the Board, it shall be
deemed that the public agency has no view to offer.
(2) Any Government Department may also identify or conceptualize a project
to be developed, managed and operated in the Sta te and send the proposal thereafter
to the Board for its recommendation. The Board shall scrutinize, evaluate and where
more than one such proposal is received, prioritize the same.
(3) The Board, on receipt of the views of the public agency under sub -section.
(1) or proposal from any Government Department under sub-section (2), shall
examine the project proposal with reference to the cost benefit analysis of the project
including the socio -economic cost benefit and shall appraise the project proposal
with sufficient details;
(4) Where the public agency or the Government Department has proposed a
project through Public -Private Partnership, the Board shall further examine the
project with reference to the following factors, namely-
(a) the cost effectiveness of implementation through public -private
partnership with value for Money test, as may be specified in the scheme;
(b) the possibility of specifying project performance parameters and
measuring their outcomes;
(c) the risk sharing with the participants;
(d) the technological an d managerial advantages due to participation;
(e) the socio -economic factors which may affect investment by the
participant;
(f) compliance with regulatory norms.
(5) The Board, may cause a feasibility study of the proposed project a nd after
satisfying itself as to its feasibility, may recommend the same to the Government,
indicating specifically as to whether it may be implemented through public sector
mode or through public private partnership.
(6) The Board shall cause the details of projects recommended under sub -
section (5), to be published on its website an d on such other websites, as may be
specified in the Scheme:
Provided that the Board may, for reasons to be recorded in writing, choose not
to publish the details of a Project.
(7) On receipt of proposal for implementation of the Project under sub -section
(5), the Government shall consider the sa me and communicate its decision. on the
implementation of the Pr oject including the mode of its implementation, to the
Board.
(8) In r espect of a Project decided by the Government to be implemented
through. Public sector mode, the Board shall designate the public agency which shall
implement that Project, give direction for its implementation and monitor the
progress of implementation.
(9) If the public agency does not commence the Project within three months
from the date of receipt of such direction or expresses its inability to implement the
Project, for any reason recorded in writing, the Board with the approval of the
Government may re-examine the P roject as in sub -section (3) an d make a fresh
recommendation to the Government.
(10) In respect of Project decided by the Government to be implemented
through Public-Private Partnership, the Board shall cause the sponsoring agency to
publish the details of the proposed projects in such form and in such manner, as may
be specified in the Scheme, inviting objections and suggestions. The sponsoring
agency shall, based on the objections and suggestions, if any, received, prepare and
submit a report to the Board within such period, as may be specified in the Scheme.
(11) The Board, on receipt of the report from the sponsoring agency under
sub-section (10), shall consider the project in consultation with the administrative
department and after causing the detaile d project study, if it considers necessary,
finalize the scope and structure of the Project, either in its original form or with such
modification, as it deems fit, also taking into account, the following aspects,
namely:-
(a) whether the Project needs any public financial support, and if so, the
appropriate form of such support;
(b) the tender criteria or variables relevant for evaluation of the tender; and
(c) the appropriate concession agreement or a combination thereof, from out
of those listed in Third Schedule.
*7. Budgetary allocation for repayment .- (1) From, time to time, Government shall
make provision in the Annual Budget to defray the expenses incurred for payment of
annuity or other repayment obligation incurred in lieu of section 8 and to mee t
operational and administrative expenses of the Board:
Provided that Government shall set apart a share of the Motor Vehicle Taxes
as contribution to the fund, reckoned on the basis of the Motor Vehicle Taxes
collected for the previous year such share be ing ten per cent in the first year and
increased by ten percent each year upto fifty per cent of the Motor Vehicle Tax in
the fifth year:
Provided further that in addition, the cess levied on petroleum products shall
also be contributed to the Fund by the Government on the basis of the amount of
cess collected during the previous year.
(2) The transfer of funds required for the successive twelve months shall be
completed either in one or more installments, before the last working day of
December of that year:
* Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016
Provided that the revenue realised from any project including user levy shall
be set-off from the appropriation so made at the end of the year and only the balance
after defraying operational expenses need be provided as appropriation during the
year.
(3) The Government may after due appropriation by law passed by the
State Legislature from time to time make grants, advances and loans to the fund for
the purposes of this Act, on such terms and conditions as the Government may
determine.
*8. Power of' the Board to borrow and lend . -(l) The Board may, from time to time,
with the previous sanction of the Government and subject to such conditions as the
Government may by general or special order determine, borrow any sum required
for the purposes of this Act.
(2) For the purpose of such borrowing the Board may issue any financial
instrument including General Obligation Bonds, Revenue Obligation Bonds or any
other appropriate financial instruments or raise funds through any financial
structures including Re venue Bonds with structured repayment mechanism, Land
Bonds and any other appropriate financial instruments or by making arrangements
with Banks, Multilateral Funding Agencies or Institutions approved by the
Government in that behalf.
(3) The Board may act as the sponsor for setting up infrastructure investment
structures, as are required for facilitating the mobilisation of resources for a project
or group of projects.
Explanation:- For the purpose of this sub-section, the infrastructure investment
structures may include, but are not limited to Alternate Investment Fund (AIF),
Infrastructure Investment Trust (InvIT), Mutual Funds and Infrastructure
Development Fund (IDF).
(4) The Financial i nstruments and securities issue d by the Board under this
section s hall be issued, transferred, dealt with or redeemed in such manner as
decided by the Board subject to the directions of the Government.
* Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016
8A. Power of the Board to delegate . - The Board may delegate to the Executive
Committee or the Chief Executive Offic er such powers and functions under this Act
or scheme as it may consider necessary for the efficient administration of the fund,
subject to such restrictions and conditions if any, as it may specify.
*9. Guarantee by Government of loans - (l) **The Government shall guarantee the
payment of the principal and interest of any fund proposed to be raised by the Board
under section 8:
Provided that the total guarantee issued by the Government under this Act shall
not exceed the limits set by the Kerala Ceiling on Government Guarantees Act, 2003
(30 of 2003) in force.
(2) The Government shall, so long as any such guarantee is in force lay before
the State Legislature in every year during the budget session, a statement of the
guarantee, if any, given during the current financial year and up to date accounts of
the total sums, if any, which have been paid out of the Consolidated Fund of the
State by reason of any such guarantee or paid into the said fund towards repayment
of any moneys so paid out.
*#10. Appointment of officers and staff . -(1) The Board may with the approval of
Government, create such posts an d appoint such number of officers and staff as it
considers necessary to assist the Board in the discharge of its functions and duties
under this Act.
(2) There shall be a Chief Executive Officer (CEO) for the Board who shall be
given the rank and status of a Secretary to the Government, appointed by the
Government. The Chief Executive Officer shall be the Fund Manager of the Board.
(3) The Chief Executive Offi cer shall exerc ise the power of supervision an d
control over all the officers and staff of the Board.
(4) The method of appointment, salary and allowances and other conditions of
service of the officers and the staff appointed under subsection (1) shall be such, as
may be specified, by the Government from time to time.
* Vide Act 5 of 2002, the words “rupees one thousand crores” substituted with “rupees two
thousand crores”.
** Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016
*# Substituted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016
11. Mode of recovery of money due to Board —All sums payable by any
person to the Board or recoverable by at under this Act o r the scheme and all
charges or expenses incurred in conne ction therewith shall, without prejudice
to any other mode of recovery, be recoverable as arrears of public revenue due
on land under the provisions of the Revenue Recovery Act for the time being
in force.
12. Members of Board etc..to be public servants . —Every m ember of th e
Board, *Executive Committee, Fund Trustee and Advisory Commission the
Fund Manager and staff of the Boar d appointed under sub -section (1) of
section 10 shall be deemed to be public s ervants within the meaning of section
21 of the Indian Penal Code (Central Act 45 of 1860).
13. Protection for acts done in good faith —No suit or other legal proceeding shall
lie against any member of the Boa rd o r any other person in respect of anything
which is done in good faith or intended to be done in go od faith under this Act or
under the scheme.
14. Power of Government to issue directions —(1) Notwithstanding anything
contained in this Act it shall be lawful fo r the Government to issue directions to
the Boa rd in matte rs relating to State and National Pol icies and such d irections
shall be binding on the Board.
* *
(2) The Gove rnment may, afte r consultation with the Boa rd, give to the Board
general directions to be followed by the Board.
(3) In the exe rcise of the powers and pe rformance of its duties unde r this Act,
the Board shall not depart from any general direction issued under sub -section (2)
except with the previous permission of Government.
15. Accounts and Audit— (1) The Board shall cause to be maintained such books
of accounts and other books in relation to its accounts and p repare an annual
statement of accounts and balance sheet in such form and in such manner as may be
specified in the scheme.
(2) The accounts of the Board shall be audited by such auditor in such manner
and at such time as the Government may, by general or special order, direct and the
auditor so appointed shall have such powe rs of requiring the production of
documents and the furnishing of information in respect of such matters.
* Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016
(3) The accounts of the Board as certified by the auditor to gether with the audit
report thereon shall be fo rwarded annually to the Governmen t who may issue such
directions to the Board as they may deem fit and the Boa rd shall comply with such
directions.
16 Annual report and audited statement of accounts —(1) The an nual report of the
Board shall be prepa red under the direction of the Board and aft er approval by the
Board, a copy of the report shall be submitted to Government before the end of July
every year.
(2) The Government shall, as soon as the annual report is received, cause the same
together with the audited statement of accounts to be laid on the table of the
Legislative Assembly.
17. Power to order inquiry . —(1) The Government may, at any time appoint any
person to inquire into the working of the Board and to submit a report to the
Government.
(2) The Board shall give the person so appointed all facilities for the proper conduct
of the inquiry and furnish to him such documents, accounts and information in the
possession of the Board as he may require.
*17A. Power to appoint an Inspection Authority . -(1) The Government may by
general or special order, appoint an inspection authority compr ising of such persons
as it dee ms fit to inspect an y p rojects and the documents of an y Special Purpose
Vehicle implementing the same that has been financed by the Board.
(2) Such Authority shall have the powers to call for documents from any Special
Purpose Vehicle and inspect its office, site and premises of the projects implemented
by it.
18. Dissolution of the Board —(1) If the Government for any reason ar e of opinion
that it is not n ecessary to continue the Boar d they may, by notification in the
Gazette, dessolve the Board from such date as may be specified therein.
(2) Upon the pu blication of a notification under sub-section (1) dissolving the
Board,
(a)
* Inserted vide Act 15 of 2016, notification no. 15841/Leg. A1/2016/Law dated 05.11.2016
(a) the Chairman and all the othe r Members of the Board shall, as from
the date of dissolution, vacate their offices as such;
(b) all the powers and functions which may, by or under the
provisions of this Act be exercised and pe rformed by or on behalf of the Board
and the Chair man shall, as from the date of dissolution, be exe rcised and
performed by the Government or such authority or person as they may appoint
in this behalf.
(c) all funds and other property vested in the Board shall v est in the
Government, and
(d) all liabilities legally subsisting and enforceable against the Board
shall be enforceable against the Government to the extent of the funds and
properties vested in them
(3) Nothing in this section shall affect the liability of the G overnment in
respect of bonds or debentures guaranteed by the Government.
19. Bar of jurisdiction of civil Co urts.—No Civil Cou rt shall have jurisdiction to
settle, decide ordeal with any question or to determine any matter which is by o r
under this Act or sch eme required to be settled, decided o r dealt with or to be
determined by the Government or the Board or any officer authorised by the
Government or the Board.
20. Removal of difficulties. —(1) If any difficulty a rises in giving effect to the
provisions of this Act, the Government may, as occasion may require, by order,
do anything not inconsistent with this Act or the scheme made thereunder, which
appears to tExcerpt shown. Open the full act in Lexace.