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PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
1
Part-I
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB
Notification
No.10-Leg./2002.- The following Act of the Legislature of the State of Punjab received the
assent of the Governor of Punjab on the 8th July, 2002 and is published for general information :-
THE PUNJAB INFRASTRUCTURE (DEVELOPMENT & REGULATION)
ACT, 2002
(Punjab Act No. 8 of 2002)
AN
ACT
to provide for creation, development, maintenance and operation of infrastructure and for
the matters connected therewith or incidental thereto1.
Be it enacted by the Legislature of the State of Punjab in the fifty -third year of the Republic
of India as follows :
CHAPTER I : PRELIMINARY
1. Short title and commencement
(1) This Act may be called the Punjab Infrastructure (Development & Regulation) Act, 2002.
(2) It shall come into force on such date as the State Government may, by notification in the
Official Gazette, appoint.
2. Definitions - In this Act, unless the context otherwise requires,-
(1) "Authority" means the Punjab Infrastructure Regulatory Authority established under
section 4;
1 As substituted vide notification no.3 9-Leg./2015 dated 09.12.2015 & notification no.26-Leg./2016 dated
04.07.2016
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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(2) "Board" means the Punjab Infrastructure Development Board established under section
18;
(3) "bye-laws" means the bye-laws made by the Board under section 24;
(4) “Chairperson” means the chairperson of the Authority;
(5) “concession” includes any right or interest granted to a concessionaire in relation to any
aspect of an infrastructure project, as well as any subsidy, subvention, grant or other
similar financial incentive granted by the State Government to secure the viability and
commercial efficacy of an infrastructure project;
(6) “concession agreement” means any of the contracts executed for the purposes of private
participation in an infrastructure project between a concessionaire and a public
infrastructure agency in terms of this Act, or the rules or regulations made there under as
per the model specified in Schedule II;.
(7) "concession fee" means the sum of money required to be paid by the concessionaire to a
public infrastructure agency in consideration of grant of a concession for unde rtaking an
infrastructure project pursuant to the provisions of this Act, rules or regulations made
thereunder;
(8) "concessionaire" means a person, who is selected and awarded a concession for
financing, development, maintenance or operation of an infrastruct ure project in terms of
this Act or rules or regulations made thereunder;
(9) “committee” means a committee and includes a Sectoral Sub -Committee, Project
Implementation Sub -Committee or any other Committee called by any other name,
constituted by the Board under this Act for the purposes assigned to them;
(10) "development" includes creation of new facilities, rehabilitation, improvement,
expansion, alteration and replacement of existing facilities;
(11) "Development Fund" means the Punjab Infrastructure Development Fund constituted
under section 27;
(12) "disinvestment" means a sale of equity or shares held by the State Government or a
public body to any person;
(13) “fee” means a charge levied and collected for facilitating the development, maintenance
and providing of infrastructure facilities under this Act;
(14) "infrastructure project" means a project in any of the infrastructure sectors, which
may involve development, maintenance or operation of infrastructure facilities through
private participation or financial sources other than those provided by State Budget;
(15) "infrastructure sector" means an infrastructure sector specified in Schedule I and shall
include such other sectors as may be notified by the State Government from time to time
in this behalf;
(16) “milestone bonding” means a schedule or chart indicating the specified time within
which a work is to be completed.
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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(17) "negotiated contract" means a contract entered into by the State Government in terms
of section 36;
(18) "notification" means a notification published in the Officia l Gazette of the State of
Punjab;
(19) "prescribed" means prescribed by the rules made under this Act;
(20) “private participation ” means the participation in development, maintenance or
operation of infrastructure projects by any person other than the State Gover nment,
public infrastructure agency or public body as may be permitted by the Board from time
to time;
(21) “Project Management Team” means a team of expert officials of the Board2;
(22) "public body" means a body either established by State Government or working under
the control of the State Government;
(23) "public infrastructure agency" means a Government Department, Government
Company, Government -owned or controlled Corporation, Local Authority or a Public
Body, which own, govern or control infrastructure sectors or infrastructure projects;
(24) "regulations" means the regulations made by the Authority under section 17;
(25) "rules" means the rules made by the State Government under section 46;
(26) "Schedule" means a schedule appended to this Act;
(27) “Schedule of amortisation” means a schedule of periodic payments of interest and
principal owed on a debt obligation;
(28) "section" means a section of this Act;
(29) “sectoral policy” means a policy pertaining to an infrastructure sector;
(30) “service provider” means any agency or body other than t hose constituted under the
Act, which provides services to the Board;
(31) “special purpose vehicle” means any body or authority, consisting of experts in the
relevant fields as may be constituted by the Board to execute an infrastructure project;
(32) "State Government" means the Government of the State of Punjab in the Department of
Finance;
(33) "tariff" means a toll or charge or fee, other than the fee levied under clause (13) of
section 2 and section 25, payable by the users of an infrastructure project;
(34) "unsolicited proposal" means a proposal for the development, maintenance or operation
of an infrastructure project received from any person without any invitation or a proposal
initiated by the State Government or the Board in terms of section 37; and
(35) “Vice-Chairperson” means the Vice-Chairperson of the Authority.
2 As amended vide notification no.31-Leg./2003 dated 03.11.2003
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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CHAPTER II : PRIVATE PARTICIPATION IN THE
INFRASTRUCTURE PROJECTS
3. Private Participation
Any person may participate in the accomplishment of the infrastructure projects in terms
of the provisions of this Act:
Provided that where participation is sought by any person by participating in
disinvestment process, the provisions of this Act shall not apply:
Provided further that any authority or body, constituted to implement such disinvestment,
may seek assis tance from the Authority, Board, Committee or the Project Management
Team as the case may be.
CHAPTER III: PUNJAB INFRASTRUCTURE
REGULATORY AUTHORITY
4. Establishment of the Authority3
(1) The State Government 4 shall, by notification, establish for the purpose of this Act, an
authority to be called the Punjab Infrastructure Regulatory Authority.
(2) The Authority shall be a body Corporate known by the aforesaid name having perpetual
succession and a common seal with power, subject to the provisions of th is Act to
acquire, hold and dispose of property, both movable and immovable and to contract and
shall, by the said name, sue or be sued.
(3) The Head Office of the Authority shall be at Chandigarh 5 or at such place, as the State
Government may notify from time to time.
5. Composition of the Authority.
(1) The Authority shall consist of a Chairperson and two other Members duly appointed by
the State Government by notification in the Official Gazette6.
3 Established vide notification no.1/5/70/2009-5FE4/470 dated 07.10.2009
4 As amended vide notification no.31-Leg./2003 dated 03.11.2003
5 Directed vide notification no.1/5/70/2009-5FE4/475 dated 08.10.2009
6 As a mended vide notification no.3 9-Leg./2015 dated 09.12.2015& notification no. 26-Leg./2016 dated
04.07.2016
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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(2) The Chairperson7, shall either be a retired Chief Justice or a serving or retired Judge of
the Supreme Court or a retired Chief Justice of a High Court or a serving or retired Judge
of a High Court or a serving or retired officer of the rank and status of the Chief Secretary
of the State of Punjab or Secretary to the Government of India.
(3) The members shall possess the qualifications specified in sub-section (5).
(4) The State Government may appoint one of the members, by notification as 4 Vice-
Chairperson of the Authority.
(5) The members appointed under sub-section (1), shall have the following qualifications and
experience in the fields of Management of Infrastructure Sectors or Infrastructure
Projects, Law, Finance, Economics or Commerce -
(i) Qualifications and experience in the field of management of infrastructu re
sector or infrastructure project: - Relevant professional qualifications and a
minimum experience of ten years of working after acquiring the said
qualifications in a Government department or public sector organisation or in a
private sector organisation; having annual turnover of one hundred crore rupees or
more in any infrastructure sector in respect of conceptualizing, appraisal,
development, financing or implementation of infrastructure projects;
(ii) Qualifications and experience in the field of Law :- A serving or a retired
District and Sessions Judge or a person qualified to be a District and Sessions
Judge;
(iii) Qualifications and experience in the field of Finance, Economics or
Commerce:-
7 Appointed vide notification no. 1/5/70/2009-5FE4/638 dated 12.11.2009, thereafter, vide notification
no.1/5/70/2009-5FE4/226 dated 15.12.2014
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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Qualifications:
(a) Membership of the Institute of Chartered Accountants of India; or
(b) Post Graduation in Economics, Commerce, Management or Engineering.
Experience:-
(a) Ten years’ experience of working after acquiring the said qualifications in a
Government department or public sector organisation or in a private sector
organisation having annual turnover of one hundred crore rupees or more; or
(b) Ten years’ teaching experience in a university or a college, recognised by the
University Grants Commission or an institute recognised by the All India
Council of Technical Education.
(6) Before appointing any person to the Authority as a Chairperson or Vice -Chairperson or
member, as the case may be, the State Government shall satisfy itself that the person does
not have any financial or other interest, which ma y affect prejudicially his functioning as
a Chairperson or Vice-Chairperson or member of the Authority.
6. Powers of Chairperson and Vice-Chairperson8
(1) The Chairperson shall have powers of general superintendence and directions in the
conduct of the aff airs of the Authority. The Chairperson shall, preside over the meetings
of the Authority as well as exercise and discharge the powers and functions of the
Authority vested in him in accordance with the regulation.
(1-A) Where there is a provision , for a ppointment of sole Arbitrator by the Government/
Government agencies, in an agreement entered into between two or more Contractors , or
contractor/contractors on one side and a Depart ment, Public Sector Undertaking , Board,
Corporation, Society or Agency und er the control of the State Government on the other
side, regarding the creation, development, maintenance and operation of infrastructure
related projects and for matter s connected therewith or incidental there to of the State
Government, in such a case, the Chairperson or any member so nominated by the
Chairperson shall be deemed to be the sole Arbitrator, under the Arbitration and
8 Amended vide notification no.36-Leg./2017 dated 29.12.2017
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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Conciliation Act, 1996 (Act 26 of 1996) in disputes where the claimed amount is five
crore rupees and above.
(1-B) Where there is a provision, for appointment of two or more Arbitrators one of them to be
appointed by the Government/ Government agencies, in an agreement entered into
between two or more Contractors , in an agreement entered into between two or more
contractors, or a contractor /contractors on one side and a Department, P ublic Sector
Undertaking, Board, Corporation , Society or Agency unde r the control of the State
Government on the other side, regarding the creation, development, maintenance and
operation of infrast ructure related projects and for matters connected therewith or
incidental thereto of the State Government, in such a case , the Chairperson or any
member so nominated by the Chairperson shall be deemed to be the Arbitrator required to
be appointed by the Government/ Government agencies under the Arbitration and
Conciliation Act, 1996 (Act 26 of 1996) , in disputes where the claimed amount is five
crore rupees and above.
(2) The Vice -Chairperson shall exercise and discharge the powers and functions of the
Chairperson, in the absence of the Chairperson, in accordance with the regulations.
7. Term of office and conditions of service of the Chairperson, Vice -Chairperson and
other members
(1) The Chairperson shall hold office for a term of five years from the date on which he enters
upon his office, or until he attains the age of seventy years, whichever is earlier.
(2) The term of office and other conditions of service of a member shall be applicable to the
Vice-Chairperson.
(3) A member shall hold off ice for a term of five years from the date on which he enters
upon his office or the date on which he attains the age of sixty -eight years, whichever is
earlier.
(4) If a person already holding an office is appointed as a Chairperson or a member, as the
case may be, he shall have to resign from that office before joining the Authority.
(5) The salary and allowances 9 payable to, and the other terms and conditions of the
9 Notified vide notification no.1/5/70/2009-5FE4/700 dated 30.11.2010
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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Chairperson, Vice -Chairperson and other members shall be such, as may be prescribe d
and the same shall not be varied to their disadvantage during their tenure.
(6) Notwithstanding anything contained in sub -sections (1), (2) and (3), the Chairperson or
the Vice-Chairperson or a member, as the case may be, may :-
(i) relinquish his office by giving a written notice of at least three calendar months to
the State Government; or
(ii) be removed from his office in accordance with the provisions of Section 8.
(7) The Chairperson or the Vice -Chairperson or any other member, ceasing to hold office as
such, -
shall be ineligible for further employment under the State Government; and
shall not accept any commercial employment in any infrastructure sector organisation,
associated with the Government of the State of Punjab during his term in office, for a
period of two years from the date he ceases to hold such office.
(8) A vacancy caused to the office of the Chairperson or Vice -Chairperson or any other
member, as the case may be, shall be filled up within a period of three months from the
date on which such vacancy occurs.
8. Removal and suspension of the Chairperson, Vice -Chairperson and member from
office in certain circumstances
(1) The State Government may remove the Chairperson, Vice Chairperson or any member
from office after complying with the provisions of sub-section (2), if he has,-
(i) been adjudged insolvent; or
(ii) been convicted of an offence which, in the opinion of the State Government,
involves moral turpitude; or
(iii) become physically or mentally incapable; or
(iv) acquired such financial or oth er interest as is likely to affect prejudicially his
functions in any of the said capacities; or
(v) so abused his position as to render his continuance in office prejudicial to the
public interest.
(2) Notwithstanding anything contained in sub -section (1), the Chairperson or Vice -
Chairperson or member, as the case may be, shall not be removed from his office unless,-
(i) a reference is made by the State Government to the Chief Justice of the High
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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Court of Punjab and Haryana seeking an enquiry and recommendati on on the
proposed removal of the Chairperson or Vice -Chairperson or member along with
the grounds for the removal and material supporting such proposal;
(ii) the reference is duly enquired into by an inquiry committee headed by a sitting or
retired High Court Judge or any other person appointed by the Chief Justice of the
High Court of Punjab and Haryana; and
(iii) the inquiry committee makes recommendation that the Chairperson or Vice -
Chairperson or member ought to be removed on such ground or grounds.
(3) The State Government may suspend the Chairperson, Vice -Chairperson or any member
of the Authority in respect of whom a reference has been made to the Chief Justice under sub -
section (2), until any recommendation is made by the inquiry committee appointed by th e Chief
Justice.
9. Meetings
(1) The Authority shall meet at such times and places and shall follow such procedure to
transact its business in the meetings, as may be specified in the regulations.
(2) The Chairperson or, if for any reason he is unable to attend a meeting of the Authority,
the Vice -Chairperson, and in his absence, any other member chosen by the members
present from amongst themselves at the meeting, shall preside over the meeting.
(3) All questions which come up before any meeting shall be decided by a majority vote of
the members present and voting, and in the event of an equality of votes, the person
presiding, shall have a second or casting vote.
10. Vacancies not to invalidate proceedings of the Authority
No act or proceeding of the Authority shall be invalid merely by reason of :-
(i) any vacancy in, or any defect in the constitution of the Authority; or
(ii) any defect in the appointment of a person acting as a member of the Authority; or
(iii) any irregularity in the procedure of the Authority not affecting the merits of the
case.
11. Officers and other employees of Authority
(1) The Authority may appoint officers and such other employees, as it considers necessary
for the efficient discharge of its functions under this Act.
(2) The salary and allowances payable to and the other conditions of service of the officers
and employees of the Authority appointed under sub -section (1), shall be such as may be
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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determined by regulations.
12. Finance, accounts and audit
(1) After the Au thority is established by the State Government, the Authority shall open an
account in any nationalized bank or a bank authorized by the Reserve Bank of India to
carry out the banking business. The following may be credited to the Account, namely –
(i) contribution received from the State Government
(ii) grants received by the Authority; and
(iii) any other sum received by the Authority from any sources including fees fixed by
the Authority under the regulations for the proceedings before the Authority.
(2) The Account shall vest in and be administered by the Authority, which will apply the
same to meet the various expenses of the Authority, including the salaries, allowances
and administrative expenses defrayed for purposes authorised by this Act.
(3) The Authority shall cause its books and accounts to be maintained, and its annual
accounts to be prepared in the form prescribed by the State Government in consultation
with the Accountant General, Punjab.
(4) The annual accounts of the Authority shall be audited b y the Accountant General, Punjab
and any expenditure incurred in connection with such audit, shall be payable by the
Authority.
(5) The Accountant General, Punjab and any other person appointed by him in connection
with the audit of the Accounts of the Authori ty, shall have the same rights and privileges
as the Accountant General, Punjab generally has in connection with the audit of the State
Government accounts and, in particular, the rights to demand production of the relevant
books, accounts, supporting vouc hers and other documents and papers of the Authority,
for inspection.
(6) The accounts of Authority as certified by the Accountant General, Punjab or any other
person appointed by him in this behalf along with the audit report with respect thereto,
shall be fo rwarded annually to the State Government, which shall cause the same to be
laid before the State Legislative Assembly.
13. Furnishing of returns to the Legislative Assembly
(1) The Authority shall prepare an annual report every year giving a summary of its activi ties
done during the previous year in such form and at such place, as may be prescribed and
copies of the report shall be forwarded to the State Government for laying them before
the Legislative Assembly.
(2) The Authority shall furnish to the State Legislativ e Assembly, at such time and in such
form and manner as may be prescribed or required by the State Legislative Assembly, the
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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returns, statements and particulars in regard to any proposed or existing program for the
promotion and development of the infrastructure sector.
14. Functions of the Authority
(1) The Authority shall discharge the following functions, namely:-
(i) to aid and advise the State Government in the formulation of appropriate policy
or guidelines relating to tariff;
(ii) to conduct the public hearing regarding the approval of proposed infrastructure
projects in terms of section 30;
(iii) to determine, modify or vary the tariff on the basis of the concessions granted to
the concessionaires and the interest of the consumer;
(iv) to regulate the working of the concessionaire and promote efficient, economical
and equitable performance, including laying down standards of performance of
the concessionaire in regard to the service to the consumer;
(v) to adjudicate upon appeal preferred to it agains t an order passed by the Board or
the State Government related to the approval of an infrastructure project o r the
award of a concession;
(vi) to adjudicate upon disputes inter -se two or more Concessionaires, operators of
infrastructure projects, the State Government and the Board; and
(vii)10 to adjudicate upon , as an Arbitrator , the disputes inter -se between two or more
contractors, or a contractor/contractors, on one side and a Department , Public
Sector Undertaking, Board, Corporation, Society or Agency und er the control of
the State Government on the other side, regarding the creation, development ,
maintenance and operation of infrastructure related projects and for matters
connected therewith or incidental thereto of the State Govt. under the Arbitration
and Conciliation Act,1996 (Act 26 of 1996), where the claimed amount is five
crore rupees and above.
Provided that the Authority shall not discharge any of the aforesaid functions or any other
such functions in respect of which The Punjab State Electrici ty Regulatory Commission
established under sub-section (1) of section 17 of the Electricity Regulatory Commissions
Act, 1998 (Act no. 14 of 1998), is empowered to discharge.
(2) The Authority shall always act consistent with the objectives and purposes for wh ich it
10 Added vide notification no.36-Leg./2017 dated 29.12.2017
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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has been established.
(3) Orders passed by the Authority in exercise of its powers under this Act, shall be final and
binding on all concerned and shall be executable as a decree.
15. Authority to have powers of a Civil Court
(1) The Authority, in conduct of all proceedings before it and in exercise of its powers under
this Act, will be guided by the principles of natural justice.
(2) The Authority shall have, the same powers as are vested in a civil court under the Code of
Civil Procedure, 1908, in respect of, -
(i) summoning and enforcing the attendance of any person and examining him on
oath;
(ii) requiring the discovery and production of documents;
(iii) receiving evidence on affidavits;
(iv) issuing commissions for the examination of witnesses or documents;
(v) reviewing its decisions;
(vi) dismissing an application for default or deciding it ex -parte, setting aside any
order of dismissal or any application for default or any order passed by it ex-parte;
and
(vii) any other matters as the Authority may specify by regulations.
16. Proceedings before the Authority shall be deemed to be Judicial Proceedings
(1) All proceedings before the Authority shall be deemed to be judicial proceedings within
the meaning of sections 193, 219 and 228 of the Indian Penal Code, 1860, and the
Authority sha ll be deemed to be a ‘Civil Court’ for the purposes of section 195 and
Chapter XXVI of the Code of Criminal Procedure, 1973.
(2) Every proceeding before the Authority shall be completed within a period of ninety days
of its commencement, except where the time period is extended by the Authority for the
reasons to be recorded in writing.
17. Power of Authority to make Regulations
(1) The Authority may make regulations for the proper performance of its functions under
this Act.
(2) In particular and without pre judice to the generality of the foregoing power and of
matters specifically provided for in this Act, such regulations may provide for all or any
of the following matters, namely; -
PUNJAB GOVT. GAZ. (EXTRA.), JULY 9, 2002
(ASAR 18, 1924 SAKA)
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(i) Specifying procedure to transact business in the meetings under section 9;
(ii) Determining of salaries, allowances and other conditions of service of the officers
and other employees of the Authority under sub-section (2) of section 11; and
(iii) Fixing of sums received by the Authority under clause (iii) of sub -section (1) of
section 12.
CHAPTER IV : PUNJAB INFRASTRUCTURE DEVELOPMENT BOARD
18. Establishment of the Board
(1) With effect from such date, as the State Government may by notification appoint, there
shall be established a Board for the purposes of this Act to be called the Punjab
Infrastructure Development Board:
Provided that till the Board is constituted under this Act, the Board already established
under section 3 of the Punjab Infrastructure Development Act, 1998 (Punjab Act No.1 of
1999) shall be deemed to have been constituted under this section.
(2) The Board established under sub-section (1), shall consist of a Chairman, Vice -Chairman
and the following, namely:-
(a) The Chief Minister of Punjab … Chairman
(aa)11 Omitted 12
(b) The Minister of Finance of Punjab ... Vice Chairman
(c) The Chief Secretary to Government of Punjab ... Member
(d) The Principal Secretary to Government of ... Member Secretary-
Punjab, Department of Finance cum-Convenor
(e) Principal Secretary to the Chief Minister of Punjab … Member
(f) Managing Director of Board … Member
(g) Three technical experts to be nominated by … Member
the State Government13,14,15, 16, 17
11 As amended vide notification no.38-Leg./2013 dated 23.05.2013 (Punjab Ordinance No.1 of 2013)
and thereafter vide notification no.58-Leg./2013 dated 11.12.2013 (Punjab Act No.47 of 2013)
12 Omitted vide notification no.17-Leg./2017 dated 27.07.2017 (Punjab Act No.13 of 2017)
13 As amendExcerpt shown. Open the full act in Lexace.