LexThe Meghalaya Infrastructure Development Finance Board Act, 2011 (Act No. 11 of 2011)
Meghalaya · state statute
Open in Lexace · Ask the AI about this actThe 6th April, 2011.
No.LL(B) 131/2010/85. —The Meghalaya Infrastructure Development Finance Board
Act, 2011 (Act No. 11 of 2011) is hereby published for general information.
.
MEGHALAYA ACT NO. 11 OF 2011.
(As passed by the Meghalaya Legislative Assembly)
Received the assent of the Governor on 6th April, 2011.
Published in the Gazette of Meghalaya Extra-Ordinary issue dated 6th April, 2011.
MEGHALAYA INFRASTRUCTURE DEVELOPMENT FINANCE B,OARD ACT 2011
AN
ACT
to provide for constitution, establishment, and sustained operation of a Board for
financing of all types of infrastructur~ in the State and to provide for matters·
connected therewith or incidental thereto.
Be it enacted by 'the Legislative of the State of Meghalaya in the Sixty-second
Year of the Republic of India a~ follows: -
CHAPTER-I
PRELIMINARY
Short title, extent 1. (1) This Act may be called the Meghalaya Infrastructure
commencement Development Finance Board Act,2011.
and applicability.
(2) It extends to the whole,of the State of Meghalaya.
(3) It shall come into force on such date as the State Government
may by way of notification in the OfficJal Gazette, appoint:
Provided that different dates may be, appointed for different
sections of this Act.
(4) It shall apply to such Infrastructure Projects as are
implemented by Qrthrough the Board, under the provision of this Act.
Definitions. In this Act, unless the subject or context otherwise requires, -
(a) "Act" means the Meghalaya- Infrastructure Development
Finance Board Act, 2011; ,
(b) "Approved Detailed Project Report" means the Approved
Detailed Project Report adopted and published by' the
Board in accordance with Section 23;
(c) "Bankable Projects" means those Infrastructure Projects
which " are determined by the Board to be -Viable' for the
purpose of finanCing; "
(d) "Board" means the Meghalaya Infrastructure Development
Finance Board constituted under Section 3(1);
, (e) "Central Government" means the Government of India, its
respective departments or any other authorities, agencies
and instrumentalities functioning under the direction or
control of the Government of India;
(f) "Chairperson" means the chairperson of the Board
appointed under Section 4(1);
(g) "Concession" me'ans grant of financial assistance or
conferment of right on government property and public
assets to a person other than the State Government or
Government Agency as per the terms specified in the
Concession Agreement;
(h) "Concessionaire" means a person with whom Concession
Agreement is entered into by the State Government, the
Government Agency or the Specified Government Agency;
(i) "Concession Agreement" means the agreement of the
nature and parameter specified in Schedule II that may be
entered by and between the Concessionaire and the State
Government, the Government Agency or the Specified
Government Agency;
U) "Consultant" means the consultancy agency, whether
belonging to the State Government or any other person(s)
which is entrusted by the Board with preparing of the
Detailed Project Report;
(k) "Detailed Project Report" means the Detailed Project
Report prepared by the Consultant in accordance with
Section 22;
(I) "Escrow Account" means a bank account in which cash is
deposited or from which cash is withdrawn in the manner
specified in the Concession Agreement;
(m) "Financial Year" means the period of twelve months
commencing on the 1 st of April of each year and ending on
the 31 st March of the following year;
(n) "Fund" means the Meghalaya Infrastructure Development
Fund constituted under Section 20 (1);
(0) "Government Agency" means a corporation or a body
owned or controlled . by the State Government or an
authority established by or under any law and includes
Local Authority; .
(p) "Infrastructure Projects" means the infrastructure projects
specified in Schedule-I and such other projects as may be
notified by the State Government from time to time;
(q) "Local Authority" means a municipal board or corporation,
municipal council, municipal town committee or notified
areas committee;
(r) "Member" means a Member of the Board including
Chairperson;
(s) "prescribed" means prescribed by rules or regulation made
under this Act;
(t) "Specified Government Agencies" means the State
Government and Government Agencies participating jointly;
(u) "State" means the State of Meghalaya;
(v) "State Government" means the Government of the State of
Meghalaya and its departments, agencies and
instrumentalities functioning under its direction or control;
(w) "State Government Guarantee" means a guarantee given
by the State Government to a Concessionaire;
(x) "Subsidy" means financial assistance in cash or kind
provided by the Board, State Government, Government
Agencies or Specified Government Agencies; and
(y) "User Charges" means the right or authority granted to the
developer by the State Government to recover investment
and fair return on investment and shall include toll, fee,
charge, rentals or benefit by whatever, name called.
CHAPER II
MEGHALAYA INFRASTRUCTURE DEVELOPMENT FINANCE BOARD
Establishment of 3. (1) As soon as may be after the commencement of this Act, the
the Board. State Government may, by 'notification in the Official Gazette
constitute and establish a Board to be called the Meghalaya
Infrastructure Development Board and the Board shall become
operational from such date the State Government may notify in the.
Official Gazette.
(2) The Board shall:
(a) be a body corporate having a perpetual succession;
(b) have a common seal;
(c) have the power to acquire, purchase, lease, rent or
otherwise take possession of any property or assets,
both movable and immovable, in its own name .
Provided that any transaction on land shall be subject to
the provIsions of Meghalaya Transfer of Land
(Regulation) Act, 1971;
(d) be capable or suing and being sued; and
(e) have the power to do or perform all such acts and things
as a body corporate may legally do or perform.
(3) The head office of the Board shall be situated at Shillong or at
such other place as the State Government may specify by a
notification in the Official Gazette. The Board may establish branch
or other offices at such other places in the State as it may deem fit.
Composition of 4. (1) The Board shall consist of a Chairperson and not less than two
Board. and not more than seven other Members to be appointed by the
State Government by notification in the Official Gazette .
(2) The composition of the Board established under sub-section
(1), shall be as follows: -
(a) The Minister of Finance of the ,.. Chairperson
State Government
(b) The Chief Secretary to the State , .. Member
Government
(c) The Additional Chief Secretaryl .. , Member
The Principal Secretary,
Department of Finance
(d) The Additional Chief Secretaryl .,. Member
Principal Secretary to the Chief
Minister
(e) The Additional Chief Secretaryl
Principal Secretary,
Planning Department
(f) Three technical experts to be ... Members
nominated by the State
Government
(g) The Minister-in-charge of the Special
concerned Administrative Invitee
Department
(3) The appointment of the Chairperson and all other Members of
the Board as first constituted and every s·ubsequent change
thereafter shall be published in the Official Gazette.
(4) The term and other conditions relating to salary and fee of
Members, Secretary, officer and employees of the Board shall be
such as may be prescribed.
Qualification of 5. (1) The Members appointed under clause (f) of section 4 shall be
Members. persons of ability, integrity and standing and qualified in the fields of
management of Infrastructure Projects, law, finance , economics or
commerce.
(2) The minimum qualification and experience in the fields of
management of Infrastructure Projects, law, finance, economics or
commerce, namely, -
(a) qualifications and experience in the field of
management of Infrastructure Projects, -
relevant professional qualification and a minimum work
experience of ten years after acquiring the professional
qualification, in a government department or public
sector organization or in a private sector engaged in
Infrastructure .Projects and having adequate financial
credentials in respect of conceptualizing, appraisal,
development, financing or implementation of
Infrastructure Projects.
(b) qualifications and experience in the field of Law-
a serving or a retired District and Sessiotls Judge or a
person qualified to be a District and Sessions Judge.
(c) qualifications and experience in the field of Finance,
Economics or Commerce -
(i) membership of the Institute of Chartered
Accountants of India or Post Graduation in
Economics, Commerce or Management; and
(ii) ten years' of work experience after acquiring,
the said qualification in a government,
department, public sector organization or in a
private sector organization having adequate
financial credentials, or ten years' teaching
experience in a university or a college,
recognized by the University Grants
Commission or All India Council of Technical
Education in the stream of finance, economics
or commerce.
(3) Before appointing any person as the Member under clause (f)
of section 4(2), the State Government shall satisfy itself that the
person does not have any financial or other interest, which may
affect prejudicially his functioning as a Member of the Board.
(4) Notwithstanding anything contained in this Act, the State
Government may, by order, remove any Member of the Board from
"his office if such Member:
(a) is an un-discharged insolvent; or
(b) is found guilty under the laws of India of a criminal offence
of a dishonest or fraudulent nature; or
(c) has been convicted of an offence which, in the opinion of
the State Government, involves moral turpitude; or
(d) is of unsound mind and stands so declared by a
competent court; or
(e) has become physically incapacitated to hold the office; or
(f) has so abused his position as to render his Gcmtinuance in
office prejudicial to the Pl!blic interest; or
(g) in case of employees of the State Government or any of
the Government Agency or any Specified Government
Agencies, has resigned, or been removed or dismissed
from the service for any reason whatsoever; or
(h) in the case of a person having professional qualifications,
is disqualified or suspended from practising his or her
profession by order of any competent authority made in
respect of him or her personally; or
(i) is judgedbYJh~ Board a~ behaving with gross misconduct
capable of bringing the Soard into disrepute; or
(j-) has ' failed ter aisclose his or her interests or potential
interests inan Infr'aStructure Projector a Bankable Project
in the State as required under Section 11; and
(k) has ill- the opinio!1 of th"e State Government, such financial
,or other interest in an Infrastructure Project or a Bahkable
Project in. theState, " a~"~s likely to affect prejudicially the
discharge by him of hisfundions as a Member.
(5) Any Member of the Board .shall cease to hold office in the
Board if he is removed in accordance with the provisions of sub-
section (4) or relinquishes ' his> office by giving a written notice of at
least three calendar months to.the State Government.
Powers of 6.The Chairperson, shall have the powers of general
Chairperson. superintendence :and'direCtions 'in the conduct of-the ;affa'irs' of the
-Soard and.shall, preside over the meetings ofthe Board:
Provided .-that the Chairperson may delegate such of his powers
relating to administrative matters of the Board, as he may think fit, to
any other Member or officer' of the Board.
Member's 7. Every Member .Of {he Hoara 'may appornt a nominee to attend a
nominees. meeting of the Board on hisbE:fficflF~san observer. Such a nominee
may speak o6 'behalfof the 'rv1em'berbut is not entitled to vote.
Tenure of 8. (1) EverYMemb~r .appointed :undet 'section 4(2) (f) shall hold office
Members. for 3 years or during' the pleasure of the' State Government.
(2) The Chairperson and every ' other Me"mber sh'all, before
entering upon his office , make and subscribe an oath of office and of
secrecy in such form, manner and before such authority, as may be
prescribed.
Filling up of 9. A vacancy caused by the resignation orremdval of any Member or
casual vacancies. by death or otherwise shall be filled up within a period of two months
by fresh appointment in accordanGe with the provisions of this Act.
Meetings of 10. (1) The Board shall ' meet at'. -suc~ t(mes and such places, and
Board shall observe such rules ot" procedure in regard to the transaction of
business at its meeting ' as may be provided by the regulations:
Provided that the Hoard shall meet-at ., Ieast once every three
months.
(2) The ~ n1eetings of the -Board shall be .. presided over by its
Chairperson or, in his ~ or her absence by the senior most Member
nominated by the Members who are present at the meeting from
among themselves.
(3) The quorum required for transacting any business by the
BoardatJts meeting shall beat least four, who shall be present in all
the meetings of the Board. Meetings of the Board shall be
sus'Pended or terminated if the number of Members present
becomes . less than the quorum .
(4) ; A~ de_cisioJ1 of the majority of B.oard Members present at a
meeting of the: Board shan be the decision of the Board and, in t~e
event of an equaJity of votes; the person presiding at the meeting
shan ·have:a lcastingNotflin additi.on to_ his or her deliberative. vote.
(5) The Members .of the Board shall discharge thek obligations
under this Act and the rules made under this Act on an honorary
basis anci:the :expens.esincurred . in connectianwith such discharge
of , obligations and conduct of meetings s~ ha11 form part of the
administrative expenses of the Board.
D1eQ1Qaure of 11. (1) If any Memberof ·the Board, or a Member of a committee, or
inte,eat; his relative is a director, shareholder, proprietor or partner in the
contr.acting entity or the Concessionaire or is.in any way directly or
indirectly interested in any project or contract or Concession
Agreement entered into or proposed to be entered into or under
consideralion by the Board, or in any other matter which is the
subject of consic:taration by the Board, and which may cause a
conflict of interests in the performance of his OJ her duties as a
Member of the Board, ora Member of acCommittee; he or she shall
fully . disclose the nature of such interest as. soon aspos.sfbie· after the
commencement of the~ meatingof the . Boafd :orthat ofthe Committee
at which the. p.rojector the contract or the Conces .sion Agreement or
. other matter is-, a subject of consideration, . and that M.ember of the-
Board. or Member of the Gommtttee shall not take part in the
consideration of, or vote on, any question relating to. that contract,
propo$8d .,c.ontract or matter.
Explanation : For the. purpose of this Section, the term "relative"
shaUbear the meaning as assigned to it under Section 2 (41) of the
Compani.es.Act. 1956.
(2) If a Member of the Board, or a Member of a Committee
referred:JQ in sub-section (1) fails to disclose a conflict of interest as
required by sub-section (1) and is· present at a meeting of the Board
or a Committee, or in any manner participates in the consideration
of, or vote. on, any question relating to the contract or other matter
referred to in sub-sectfQn (1). the proceedings in relation to that
contr.a.ct or matter shal·I, as soon as such non-disclosure is
discovered, be rendered. invalid and. thereafter be reviewed by the
Board or the~ Commjttee, as the case may be, in the absence of the
Member of the. Board, alternate Memberofthe Board , or Member of
the Committee concerned.
Appointment of 12. (1) The Board may appoint a secretary and such other
secretary, employees as it considers necessary for the efficient performance of
experts, its functions under this Act
professionals
and officers and (2) The salaries and allowances payable to and other terms and
other employees conditions of service of the secretary and officers and other
of Board. employees 'of the Board and the number of such officers and 'other
employees shall be such as may be prescribed.
(3) The Board may engage, in accordance with the procedure
specified by regulations, such number of experts and professionals
of integrity and outstanding ability, who have special knowledge and
experience in the sector, to assist the Board in discharging of its
functions under this Act.
Temporary 13. The Board may associate with any person whose assistance or
association of advice is required in performing any of its functions under this Act.
persons with
Board.
Constitution· of 14. The Board may constitute Committees consisting of such number
Committees. of Members, and other employees, professionals and officers for
performing such of its functions, as may be determined by the Board
and such Members, employees, professionals and officers shall be
the members of the Committee so constituted.
Providing 15. The Board may obtain information in relation to the progress of
information to any Bankable Project which has been undertaken as per the
Board. provisions of this Act.
Acts and 16. No act or proceeding of the Board or of any' of its Committees
proceedings of shall be invalid merely by reason that any vacancy therein or any
Board notto be defect in the constitution of the Board, or any defect in appointment
invalid. of a person acting as Chairperson or a Member or any irregularity in
its procedure not affecting the merit of the case.
Board 17. The Board shall be accountable to the State Govt.
accountability.
CHAPTER III
DUTIES, FUNCTIONS AND POWERS OF THE BOARD
Duties and 18. (1) The Board shall have the following duties and funCtions;
Functions of the namely, -
Board.
(a) finance, procure finance and provide credit facilities for
construction, development, operation, maintenance,
rehabilitation and up gradation of Bankable Projects tn
the State;
(b) administer and manage the Fund for the purpose of
undertaking or assisting any financial commitments or
Subsidy envisaged under any Concession Agreement or
other arrangement and for the performance of its duties
and functions including its own administrative
expenditure;
(c) determine whether an Infrastructure Project is a
Bankable Project and decide on the mode and manner
of financing such Bankable Project in accordance with
the provisions of this Act;
(d) perform such other functions as may be entrusted to it
by the State Government;
(2) The duties and functions of the Board shall be exercised in
an independent, transparent and efficient manner and. < shaH
disseminate all relevant information abowt its operations to ' the
public, in such manner as may be determined by the Board.
Powers of the 19. (1) The Board shall have the following powers, namely:-
Board.
(a) to finance construction, development, operation,
maintenance, rehabilitation · and up gradation of
Bankable Projects in the State in accordance with the
provisions of this Act;
(b) to provide credit facilities for financing construction,
development, operation, maintenance, rehabilitation and
up gradation of Bankable Projects which are to be
extended through the State Government, Government
Agencies, Specified Government Agencies or through
Public Private Participation;
(c) to borrow and raise money with or without security by
issue of bonds, debentures, loans or such other
instruments as it may deem fit and to receive money
from Indian or foreign sources and deposit at interest or
otherwise in such manner as the Board may think fit;
institutions,
Central
(I) to negotiate arJd enter into any contract or arrangement
for the more efficient conduct of the business of the
Board or any party thereof and to sublet any contract
from time to time;
(m) encourage investment of capital in Bankable Projects in
the State, consider proposals for private participation
and grant Subsidy and exclusive rights to any person to
develop any Infra~tructure Project and Set parameters
for Concession Agreements or arrangements and
negotiate and formulate the terms of any Concession
Agreement (including the User Charges) or any other
agreement or arrangement in relation to such Bankable
Projects in accordance with the provisions of this Act;
(n) to charge fees for carrying out any of its duties or
functions;
(0) to form special purpose vehicles in the form of
companies or other form of entities on its own or as joint
ventures as may be deemed necessary for the purpose
of implementation of Bankable Projects;
(p) to undertake and conduct or direct committee or
Consultants or any other person, to conduct surveys,
feasibility studies, collect data and prepare Detailed
Project Reports;
(q) to do all or any other things and perform such other acts
as are incidental or may be thought conducive for
attainment of the above objects or consequential upon
the exercise of the powers or discharge of its functions
and duties.
CHAPTER IV
MEGHALAYA INFRASTRUCTURE DEVELOPMENT FUND
Meghalaya 20. (1) the State Government shall constitute a fund to be known as the
Infrastructure Meghalaya Infrastructure Development Fund which shall vest in the Board.
Development
.(2) The Fund shall consist of: Fund.
(a) contribution from the State Government or the Central
Government;
(b) amount charged by the Board under Section 25;
(c) amounts borrowed or mobilised by the Board from capital or
debt markets by any instrument whatsoever from both
domestic· and international entities including financial
institutions, banks, multilateral lending agencies and
international and domestic grant providers, for Infrastructure
Projects;
(d) all money received for Bankable Projects;
(e) any other income accruing to the Fund/Board, including by
way of investments;
(f) money accruing to the Fund/Board through sale, lease or rent
of any assets of the Board;
(3) In case amounts allocated for the Fund remain un-committed ' at the
end of any Financial Year for any reason whatsoever, then such amounts
shall continue to vest with. the Fund and shall be available for utilisation in
the next Financial Year. ·
(4) The State Government may make advances t6 the Fund in order to
meet a deficit or . any part thereof and such advances shall be made on
such terms and conditions, whether as to repayment or otherwise, as the
Government may determine.
(5) The monies comprising the Fund shall be utilised or applied for:
(a) financing construction, development, operation,
maintenance, rehabilitation and up gradation of Bankable
Projects;
(b) meeting administrative and other expenses in relationt6 the
functioning of the Board;
(c) meeting any financial commitments or Subsidy envisaged
under any Concession Agreement or any other agreement
or arrangement for development of infrastructure in the
State;
(6) Notwithstanding anything contained in this Act, the Board shall have
the powers, to spend such sums as it thinks fit to cover administrative
expenses and for the performance of its duties and functions and such
sums shall be treated as expenditure payable out of the Fund of the Board.
CHAPTERV
BANKABLE PROJECT IDENTIFICJ(TION & IMpLEMENTATION
Identi iication. 21. For the identification of Infrastructure Projects that may be
funded or financed, the Boar'dmay consider suggestions from State
Government, Government Agencies, Specified Government
Agencies or persons engaged in the business of developing or
implementing of Infrastructure Projects.
Detailed Project 22. (1)The Board may itself conduct or have conduCted by one or
Report. more Committee, Consultants or any other person such preliminary
investigations and feasibility study as are necessary to establish the
viability of the Infrastructure Project. and the Committee or the
Consultants or any other persgn appointed by the Board for this
purpose shall prepare and submit a Detatied Project Report to the
Board in such form and containing such details as may be
determined by the Board.
(2) The Board shall review each Detailed Project Report to
determine whether it has been prepared according to the Board's
requirements. If the Board finds deficiencies it may direct the
Consultants to present a revised Detailed ProjeCt Report within a
prescribed period.
Approved 23. (1) Detailed Project Report once approved by the Board shall be
Detailed Project adopted and published by the Board as Approved Detailed Project
Report. Report. The Board shall provide a copy of the Approved Detailed
Project Report to the concerned departments of the State
Government and to the concerned Government Agency or the
Specified Government Agency. The Board shall also publish the
Approved Detailed Project Report on its website.
(2) The Board shall determine on the basis of the Approved
Detailed Project Report whether an Infrastructure Project is a
Bankable Project or not and shall also take into consideration any
comments offered by the concerned departments of the State
Government or the concerned Government Agency or the Specified
Government Agency.
Implementation 24. (1) In deciding the mode and manner in which an identified
of Bankable Bankable Project is to be financed, the Board shall have regard to its
Projects. own capabilities, offers available for collaboration by other
Government Agencies and any Concession Agreement, or
arrangement entered into by the State Government for this purpose
with any person and form such special purpose vehicles, companies
or' entitie~ on its own or as joint ventures as may be prescribed by
the regulations.
(2) In inviting private sector participation, the Board shall follow a
competitive bidding prbcess which adheres to accepted norms of
transparency and cost effectiveness and the Board shall frame the
regulations to lay down 'the situations where competitive bidding
method or other methods shall be followed, The Board may grant
first right of refusal to the person developing the Bankable Project
However, such first right of refusal shall be granted only on the basis
of an appropriate procedure, which adheres to accepted no~ms of
transparency and cost effectiveness. The Board shall have the right
to cancel any adopted process without citing any reason and initiate
a fresh process,
(3) In considering a proposal for development of a Bankable
Project by private sector participation, the Board shall ensure that
any exclusive right for such project development conferred on such
persons is limited to a specified period.
(4) In order to ensure implementation of a Bankable Project,
developed under this Act, the Board may form such special purpose
vehicles, companies or entities on its own or as joint ventures as are
deemed necessary for this purpose.
(5) The Board shall ensure that any Concession Agreement or
arrangement formulated by Board is in consonance with the nature
and parameters given in Schedule II and contains all necessary
covenants to take care of the risks associated with the concerned
Bankable Project and that the Concession Agreement or
arrangement shall strive for the optimum contractual structure with
regard to the need to balance the risks of stakeholders, maximize
efficiency and minimize costs as may be prescribed.
(6) The Concessionaire may, charge, recover and appropriate
the User Charges for use of any facility or product or service related
to or arising out of a Bankable Project, where such project is
undertaken by the Concessionaire. The Board shall specify the mode
and manner of determination and variation of User Charges.
(7) Once any Bankable Project has been finalized. or a
Concession granted, the State Government and the Board shall
ensure that they do not act in any manner, which results in material
adverse impact on the viab'ility of the Infrastructure Project or the
Concession Agreement
(8) In case the State Government, Government Agencies, or the
Specified Government Agencies wishes to terminate any
Concession, it shall take such action only in consultation with the
Board or as per the guideline provided by the Board in this behalf:
Fees.
Provided that where a Concession Agreement is terminated
with or without the consent of the Concessionaire, the
Concessionaire shalt be entitl.ed to such amount of compensation for
such termination, as is specified in the Concession Agreement.
25. The Board may charge'such fee, for carrying out any of its duties
and functions, as prescribed by regulations or in terms of any
agreement or arrangement entered into by it.
CHARTER VI
ACCOUNTS, AUDIT AND REPORT
Accounts and 26. (1) The accounts of the Board shall be prepared and maintained
Audits. in such form and in such manner as may be provided by the rules.
(2) The Board shall cause to be prepared for each Financial Year
an annual statement of accounts in such form as may be provide by
the rules.
(3) The accounts of the Board shall be audited by an auditor duly
qualified to act as an auditor of Companies under Section 226 of the
Companies Act, 1956. (1 of 1956)
(4) The auditor shall include in their report assessments relating
to the achievement of the purpose of the Fund, compliance with the
policies and procedures established by the Board, and the
effectiveness of the management of the Fund.
(5) The auditor shall send copy of the report together 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.
(6) The State Government shall cause the audit report together
with audited copy of accounts to be laid before the State Legislature,
as soon as may be, after the receipt of the same under sub-section
(5).
(7) All expenses, costs and charges including fees payable to
Auditors pursuant to this Section shall be paid out of the Fund in
accordance with sub-section (5) of Section 20.
Reports 27. (1) The Board shall during each Financial Year prepare in such
form and at such time as may be provided by regulations, an ann,uel
report giving a true and full account of its activities during the
previous Financial Year and an account of the activities likely to be
undertaken by it in current Financial Year and copies of such report
shall be forwarded to the State Government.
(2) The State Government shall cause every such report to be
laid before the State Legislature, a~ soon. as mC3Y be, after the receipt
of the report under sub-section (1).
CHAPTER VII
MISCELLANEOUS
Banking and 28. All sums received for the purposes of the Fund shall be paid into
Withdrawal. an account or accounts with such banks as are agreed with the State
Government and no amount shall be withdrawn there from except
under the authority of the Board and by means of:
(a) cheques signed by such persons as are authorized in that
behalf by the Board; or
(b) transfer of money electronically certified by such persons
authorised in that behalf by theBoard .
Members, 29. All Members and employees and officers of the Board shall,
officers and while acting or purporting to act in pursuance of the provisions of this
servants to be Act or any rules or regulations made thereunder, be deemed to be
public servants. public servants within the meaning of Section 21 of the Indian Penal
Code 1960 and Section 2(c) of the Prevention of Corruption Act,
1988.
Protection of 30. No suit, prosecution or other legal proceeding shall lie against
action taken in the Board or any member and officer or servant of the Board for
good faith. anything . which is in good faith done or intended to be done in
pursuance of the provisions of this act or any rules and regulations
made thereunder.
Powers to make 31. (1) The State Government may, by notification in the Official
Rules. Gazette, make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the
foregoing powers, such rules may provide for all or any of the
following matters, namely,-
(a) the matters relating to competitive public bidding,
inviting comparative bids and direct negotiation under
this Act;
(b) the ~ manner in which . the developer for any Bankable
Project shall be selected unqer this Act;
(c) the scheme for concession agreement;
(d) the other factors having regard to which charges may
be revised and the manner in which they may be
revised;
(e) the manner in which an opportunity of being heard
shall be given to the developer;
(f) the form.. and manner in which the accounts ' ofi.the
Board shall be prepareq and maintained;
(g) the form in which an annual statement of accounts of
the Board shall be prepared;
(h) the form in which and the time at which an annual
report of the Board shall be prepared;
(i) any other matter which is to be or may be prescribed.
(3) Every rule made under this Act shall be laid, as soon as after
it is made, before the State Legislature.
Power to make 32. (1) The Board may make regulations not inconsistent with
regulations. provisions of this act and the rules made thereunder, for enabling it
to discharge its functions under this Act.
(2) In particular and without prejudice to the foregoing powers,
such regulations may provide for all or any of the following matters,
namely, -
(a) the manner in which a proposal shall be submitted to
the Board under the Act;
(b) the time and the place at which the Board shall meet
and rules of procedure the Board shall observe iFl'
regard to transaction of its business at its meeting;
(c) the other 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 this Act;
(d) the remuneration, allowances and conditions of service
of Members, secretary, experts, professionals and
officers and other employees of Board;
(e) any other matter which is, or may be, necessary to be
prescribed for the efficient conduct of the affairs of the
Board.
(3) Every regulation made under this Act shall be laid, as soon
as after it is made, before the State Legjslature.
Act to ha'le 33. The provIsions of this Act shall · have effect notwithstanding
overriding eff@t. anything inconsistent therewith contained in any other law for the
time being in force in the State.
Power to remove 34. (1) If any difficulty arises in giving effect to the provisions of this
difficulties. Act, the State Government may, by order published in the Official
Gazette, make such provisions, not inconsistent with the provisions
of this Act as may appear to it to be necessary for removing tile
difficulty:
Provided that no such order shall be made after the expiry of
period of two years from the date on which this Act come into force.
(2) Every order made under this Act shall be laid, as soon as
after it is made, before the State Legislature.
SCHEDULE I
[See section 2(0)]
INFRASTRUCTURE PROJECTS
1. Power generation, transmission and distribution Systems.
2. Transportation Roads, Bridges, By-passes and related areas for the benefit of
public including agricultural and industria! sector
3. Urban and Rural Projects including housing, water supply, sewerage disposal and
treatment, urban and rural roads and lighting, solid waste management, parks, mass
transit, markets, etc.
4. Dams, Irrigation, Canals, waterways, water storage.
5. Land Reclamation Projects.
6. Tourism Projects.
7. Education.
8. Health care infrastructure and allied facilities.
9. Fisheries.
10. Development of Minor Minerals.
11. Gas and Gas Works.
12. All infrastructure facilities required for industrial, agricultural and overall growth of
the State.
13. Industrial estates, Industrial parks, Industrial Townships, Special Economic
Zones, IT Parks, etc.
14. Other industrial infrastructure for promotion of core industries such as coal, steel,
cement, petroleum, manufacturing, and others.
15. Other agricultural and related infrastructure including post harvest facilities like
warehousing, cold storage, marketing of agricultural produce.
16. Any other sector which may be notified by the State Government.
SCHEDULE II
[See Section .2(i), 24(5)]
CONCESSION AGREEMENT
A. NATURE OF CONCESSION AGREEMENT
1. Build Operation and Transfer Agreement: - An agreement whereby the
Concessionaire undertakes the construction, including financing, of a given
infrastructure facility, and the operation and maintenance thereof. The
Concessionaire operates the facility over a fixed term during which it is allowed to
charge User Charges not exceeding those proposed in its bid or as investment, and
operating and maintenance expenses in the project. The Concessionaire transfers
the facility to the State Government, Government Agency or Specified Government
Agencies unit concerned at the end of the fixed terms.
2. Build Own Operate and Transfer Agreement: - An agreement whereby the
developer undertakes to finance , construct, maintain and operate an Infr<;:lstructure
Project and whereby such Infrastructure Project is to vest in the developer for a
specified period. During the period of operation of the Infrastructure Project by the
developer, he may be permitted to charge user charges as specified in an
a'greement. The developer is required to transfer the project to the State
Government, the Government Agency or Specified Government Agency, as the case
may be, after the expiry of the period of operation.
3. Build-Own-and Operate Agreement: - An agreement whereby a Concessionaire is
authorized to finance, construct, own, operate and maintain an infrastructure or
development facility from which the proponent is allowed to recover its total
investment, operating and maintenance costs plus a reasonable return thereon by
collecting User Charges.
4. Build Own Operate and Maintain Agreement:- An agreement whereby a developer
undertakes to finance, construct, operate and maintain an Infrastructure Project and
whereby such project is to vest in the developer for specified period. During the
period of operation of the project, he may be permitted to charge User Charges as
specified in the agreement.
5. Build and Transfer Agreement: - An agreement whereby developer undertakes to
finance and construct an Infrastructure Project. After the completion of the project,
the developer is required to transfer the project to the State Government, the
Government Agency or, the Specified Government Agency as the case may be. The
developer shall be paid such amount as is fixed in amortization schedule specified in
the agreement.
6. Build Lease and Transfer Agreement: - An agreement whereby a developer
undertakes to finance and construct the Infrastructure Project. On completion of the
project, the developer hands it over to the State Government, the Government
Agency or, as the case may be, the Specified Government Agency for operation
under a lease agreement for period specified in the agreement after the expiry of
which the project stands transferred to the State Government, the Government
agency or, as the case may be, the Specified Government Agency.
7. Build Transfer and Operate Agreement; - An agreement whereby the developer
undertakes to finance and construct the Infrastructure Project. On completion of the
project , the developer transfers the project to the State Government, the
Government Agency or, as the case may be, a Specified Government Agency which
permits the developer to operate the project on its behalf for a period specified in the
agreement.
8. Contract-Add-and-Operate Agreement: An agreement whereby ~ the
Concessionaire adds to an existing infrastructure facility, which it is renting from the
State Government. It operates the expanded project over an agreed franchise
period. There may, or may not be, a transfer arrangement in regard to the facility.
9. Develop operate and Transfer Agreement: - An agreement whereby favorable
conditions external to a new Infrastructure Project which is to be built by a private
project proponent are integrated into the arrangement by giving that entity the right to
develop adjoining property, and thus , enjoy some of the benefits the investment
creates such as higher property or rent values .
10. Lease Management Agreement: - An agreement whereby the State Government,
the Government Agency or the Specified Government Agency leases a project
owned by the State Government, the Government Agency or, as the case may be,
the Specified Government Agency to the person who is permitted to operate and
maintain the project for the period specified in the agreement and to charge user
charges therefore .
11. Management Agreement: - An agreement whereby the State Government , the
Government Agency or the Specified Government Agency entrusts the operation
and management of a project to a person for the period specified in the agreement
on payment of specified consideration. In such agreement the State Government,
the Government Agency or, as the case may be,the Specified Government Agency
may charge the User Charges and collect the same either its.elf or entrust the
collection for consideration to any person who shall after collecting the User Charges
pay the same to the State Government, the Government Agency or, as the case may
be, the Specified Government Agency.
12. Rehabilitate Operate and Transfer agreement:. - An agreement whereby an
existing pr9ject is vested in a person to renovate, operate and maintain for the period
speCified in the agreement after the expiry of which the Infrastructure Project is
required to be transferred to the State Government, the Government Agency or, as
the case may be, the Specified Government Agency . During the period of operation
of the project by the developer, he may be permitted to charge User Charges as
specified in the agreement.
13. Rehabilitate Own Operate and Maintain Agreement: - An agreement whereby an
existing project is vested in a person to renovate, operate and maintain. The
developer shall be permitted to charge User Charges as specified in the agreement.
14. Service Contract Agreement: '- An agreement whereby a person undertakes to
provide services to the State Government , the Government Agency or the Specified
Government Agency for a specified period. The .,State Government, the Government
Ag~ncy or, as the case may be, the Specified Government Agency shall pay him an
amount according to the agreed schedule .
15 . Supply Operate and Transfer Agreement: - An agreement whereby a person
supplies to the State Government, the Government Agency or the Specified
Government Agency the equipment and machinery for a project and undertakes to
operate the project for a period and consideration specified in the agreement. During
the operation of the project, he shall undertake to train employees of the State
Government , the Government Agency or, as the case may be, the Specified
Government Agency to operate the Infrastructure Project.
-16. Joint Venture Agreement: - An agreement whereby the State Government, the
Government Agency or the Specified Government Agency enters into an agreement
with a developer to jointly finance, construct, operate and maintain a prQject for a
p'eriod specified in the agreement after the expiry of which the project is required to
be transferred to the State Government, the Government Agency or, as the case
may be, the Specified Government Agency.
17. Agreement of any other nature which the Board may determine in consultation
with the State Government and notify in the Official Gazette.
B. Parameters for Concession Agreement or Arrangement:
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 provide for the transfer of a
project taken up with the private sector participation to the State Government, the
Government Agency or, as the case may be, the Specified Government Agency, not
later than a period of 40 years from the date of agreement or arrangement of
implementation of a project;
(b) the Concession Agreement or arrangement may provide for financial participation
by the State Government, the Government Agency or, as the case may be, the
Specified Government Agency in any project up to a maximum of 30% of the project
cost and the actual nature and quantum of this financial partExcerpt shown. Open the full act in Lexace.