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The TAMIL NADU INFRASTRUCTURE DEVELOPMENT ACT 2012

Tamil Nadu · state statute
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THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
  1 
THE TAMIL NADU INFRASTRUCTURE 
DEVELOPMENT ACT, 20121. 
(TAMIL NADU ACT No. 22 OF 2012 ) 
 
The following Act of the Tamil Nadu Legislative Assembly 
received the assent of the Governor on the 31st May 2012 and 
is hereby published for general information:— 
 
An Act to provide for an enabling and facilitative environment 
in the State for financing, design, construction, maintenance 
and operation of Infrastructure projects also through private 
sector participation, and to provide for an institutional 
framework fo r i dentification, prioritization and 
implementation of such projects and for matters connected 
therewith and incidental thereto.  
 
BE it enacted by the Legislative Assembly of the State of Tamil 
Nadu in the Sixty -third Year of the Republic of India as 
follows:- 
CHAPTER – I. 
PRELIMINARY. 
1. Short title, extent, application and 
commencement.— (1) This Act may be called the Tamil Nadu 
Infrastructure Development Act, 2012. 
(2) It extends to the whole of the State of Tamil Nadu. 
(3) It shall apply to all Proje cts of  a value exceeding 
rupees five hundred crore implemented by a public agency: 
Provided that the Governme nt may, by general 2 or 
special order, apply the provisions of this Act, to any public - 
private partnership project, the project value of which is l ess  
than rupees five hundred crore:                                   
 
1  Published in Part IV –Section 2 of the Tamil Nadu Governme nt Gazette Extraordinary 
No.145, dated the 1st June 2012. 
2  Applies to all Public-Private Partnership projects of a value in excess of Rupees ten crores. 
[Notification No..II(2)/FIN/747(a)/2012 p ublished in Part II –Section 2 of the Tamil Nadu 
Government Gazette Ex traordinary No.314, dated the 7th November 2012. –  G.O. 
Ms.No.391, Finance(BPE) Department, dated 7-11-2012.] 
 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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Provided further that it shall not apply to any Project 
undertaken by the Central Government or a public sector 
undertaking of the Central Government, either independently 
or 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,— 
(a) required to make capital investment, the value of  
the asset or facility to be created including the cost of land, if 
the cost of the land is to be borne by the private sector 
participant; or 
(b) not required to make capital investment, the current 
replacement value of the asset or facility, whose operation and 
maintenance shall be the responsibility of the private sector 
participant. 
(4) It shall come into force on such date 1 as the 
Government may, by notification, appoint. 
2. Definitions.— In this Act, unless the context 
otherwise requires,- 
(a) “administrative department” means the department  
of the Secretariat which is administratively concerned with a 
Project as per the Tamil Nadu Government Business Rules, 
1978, and more than one department may also be 
administratively concerned with a Project; 
(b) “Board” means the Tamil Nadu Infrastructure 
Development Board established under section 3 of this Act; 
(c) “concessionaire” means the private sector 
participant which has entered into a public–private 
partnership; 
 
1  Appoints 15 th day of June 2012 as the date on which the said Act shall come into 
force. [Notification No. II(2)/FIN/308(a-1)/2012 p ublished in  Part II –Section 2 of th e 
Tamil Nadu Government Gazette  Extraordinary No.159, dated the 15th June 2012.  -  G.O. 
Ms.No.211, Finance (BPE) Department, 14 -6-2012 .] 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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(d) “concession a greement” means an agreemen t 
entered into between a public agency and a private sector 
participant for and in respect of a public-private partnership; 
(e) “detailed Project s tudy” means a detailed study of 
the Project made after the preliminary investment decision, 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 and the plan for implementation of the Project and 
such other information as may be prescr ibed i n the 
regulations; 
(f) “feasibility study” means a preliminary study made 
for investment decision making , to assess the technical, 
social, economic and financial viability and the social and 
environmental impact of a Project including the demand for 
the se rvices, appropriate technology to be adopted, capital 
cost, time required for implementation, and such other 
information as may be prescribed in the regulations; 
(g) “Government” means the State Government; 
(h) “Government c ompany” means any company in 
which not less than fifty one per cent of the paid -up share 
capital is held by the State Government or Governments and 
includes a company which is a subsidiary of a Government 
company as thus defined; 
(i) “Infrastructure”  means provision of assets or 
services in any one or more of the sectors specified in 
Schedule-I; 
(j) “Local authority” means any municipal corporation 
or municipal council or panchayat union council or village 
panchayat constituted under the relevant law for the time 
being in force; 
(k) “private sector participant” means any person other 
than a public agency or the Central Government or a public 
sector undertaking of the Central Government; 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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(l) “Project” means an Infrastructure Project; 
(m) “public-private partnership” means an arrangement 
between a public agency and a private sector participant for 
the provision of infrastructure through investment made or 
through design, development, construction, maintenance or 
operation undertaken by the private sector participant, where 
risks are allocated between them such that the private sector 
participant takes on the risk beyond the stage of design and 
construction and the payment for the services are 
performance linked, in the form of user charges, annuities or 
unitary payment; 
(n) “public-private partnership project” means a Project 
implemented through public-private partnership; 
(o) “public a gency” means any department of the 
Government or any public sector undertaking of the 
Government, a Government Company, Statutory Board 
formed by the Gover nment, Local authority, Co -operative 
Institution, State University, any Society or Trust formed, 
owned or controlled by the Government; 
(p) “public financial support” means financial support 
from the Central Government or the State support or both; 
(q) “public s ector m ode” means implementation of a 
Project directly by a public agency by it’s own resources or 
through the State Budgetary resources; 
 (r) “regulations” mean the regulations made by the 
Board under this Act; 
(s) “rules” mean the rules made by the  Government 
under this Act; 
(t) “Schedule” means a Schedule, appended to this Act; 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
  5 
(u) “sponsoring a gency” means the public agency 
designated by the Board to implement a Project through 
public-private partnership; 
(v) “State support” means the support extended by the 
Government to a concessionaire, which may include the 
following:- 
(i) subsidy or capital grant not exceeding such 
proportion of the cost of the Project, as may be prescribed in 
the rules; 
(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 prescribed 
in the rules. 
(w) “Tender Act” means the Tamil Nadu Transparency 
in Tenders Act, 1998 (Tamil Nadu Act 43 of 1998); 
(x) “user levy” means user charge or fee or any other 
amount, by whatever name called, payable by the user of an 
infrastructure facility. 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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CHAPTER-II. 
THE TAMIL NADU INFRASTRUCTURE 
DEVELOPMENT BOARD. 
3. Establishment of the Tamil Nadu Infrastructure 
Development Board .— (1) As soon as may be, after the 
commencement of this Act, the Government may, by 
notification, establish 1 a Board to  be called the Tamil Nadu 
Infrastructure Development Board with effect from such date 
as may be specified in the notification. 
(2) The head quarters of the Board shall be at Chennai. 
(3) The Board shall consist of the following members, 
namely:-2 
(a) the Chief M inister, who shall be the 
Chairperson, ex-officio; 
(b) the Minister in-charge of Finance, who shall be 
the Vice-Chairperson, ex-officio; 
(c) the Chief Secretary to Government, ex-officio; 
(d) the Secretary to Government, F inance 
Department, who sha ll be th e Member -
Secretary, ex-officio; and 
(e) the Chief Exe cutive Officer of  the Board, 
ex-officio. 
4. Meetings of the Board.— (1) The Board shall meet 
at such time and place and shall observe such rules of 
procedure in regard to transaction of business at its meetings, 
including the quorum at such meetings as may be provided in 
the regulations. 
(2) When the Chairperson of the Board, or in his 
absence the Vice-Chairperson, and in the absence of both the 
 
1 The Tamil Nadu Infrastructure Development Board was established with effect fro m the 
15th day of June 2012.  [ Notification No.II(2)/FIN/308(a -2)/2012 p ublished in                   
Part II –Section 2 of th e Tamil Nadu Go vernment Gazette Extraordinary No.159, dated the 
15th June 2012.  -  G.O. Ms. No.212, Finance(BPE) Department, dated 14-6-2012.] 
2 Amended vide Tamil Nadu Infrastructure Development (Amendment) Act, 2022 Act No. 
37 of 2022  
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
  7 
Chairperson and the Vice -Chairperson, any other memb er 
chosen by the members present from amongst themselves 
shall preside over the meeting of the Board. 
(3) All questions at a meeting of the Board shall be 
decided by a majority of the votes of the members present and 
voting and, in the case of any equality  of votes, the person 
presiding shall have a second or casting vote. 
(4) The M inister-in-charge of the administrative 
department and the Secretary to Government of the 
administrative department shall be the special invitees at the 
meetings of the Board: 
Provided that the Chairperson may allow any person as 
he deems necessary to be a special invitee. 
5. Proceedings of the Board not to be invalidated.— 
No act or proceedings of the Board shall be invalid by reason 
only of the existence of any vacancy amongst its members or 
any defect in the constitution thereof. 
6. Appointment of Chief Executive Officer, officers  
and s taff of the Board .1— (1) There shall be a Chief 
Executive Officer for the Board appointed by the Government. 
(2) The Board may, create such posts and appoint such 
number of persons as it may require, to carry out its 
functions and duties under this Act. 
(3) The salary, allowances and the conditions of service 
of the persons appointed under sub-section (2), shall be such  
as may be prescribed in the regulations. 
(4) The Chief Executive Officer of the Board shall 
exercise the power of supervision and control over all the 
officers and staff of the Board. 
 
 
 
1 Amended vide Tamil Nadu Infrastructure Development (Amendment) Act, 2022 Act No. 
37 of 2022 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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7. Functions of the Board.— The Board shall,— 
(1) act  as a nodal agency to co -ordinate the efforts of 
the Government in regard to the development of the 
Infrastructure sectors in the State; 
(2) identify or conceptualize, priorit ize and determine 
the sequence of Projects and recommend to the Government a 
shelf of Projects for implementation in the State; 
(3) identify bottlenecks in the Projects and recommend 
policy initiatives to rectify the same; 
(4) formulate policies related to the sectors specified in 
Schedule I, so as to ensure that Project risks are iden tified 
and allocated between the stakeholders; 
(5) c o-ordinate with the departments concerned and 
the implementing agencies; 
(6) prepare documents including feasibility study 
reports and detailed Project study reports, internally or 
through external consultants or experts; 
(7) scrutinize, evaluate and prior itize the Projects 
proposed by a public agency and recommend to the 
Government for its implementation; 
(8) prescribe the fo rm of tender documents for all 
Projects; 
(9) designate the public agency, which shall implement 
a Project through public sector mode or through a public-
private partnership; 
(10) approve concession agreements in respect of the 
Projects identified by the Board; 
(11) evaluate and recommend financial support from 
the Government under the Tamil Nadu Infrastructure 
Development Fund or from the Central Government; 
(12) co-ordinate with the Government, any Government 
agency and the sponsoring agency in the execution of public -
private partnership projects; 
(13) manage and utilise the Project Preparation Fund; 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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(14) promote and oversee, capacity building for project 
appraisal, project management, procurement, and related 
areas in Government departments and public agencies; and 
(15) perform such other functions as may be entrusted 
to it by the Government. 
8. Powers of the Board .— The Board shall, fo r 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 any information in regard to a ny 
Project; 
(b) to inspect, visit and monitor any Pr oject and its 
execution, operation and management; and 
(c) to regulate its own procedures. 
9. Executive Committee .— (1) The re shall be an 
Executive Committee of the Board. It shall exercise such of 
the p owers and perform such of the functions as may be 
delegated to it by the Board. 
(2) The Executive Committee shall consist of the 
following members, namely:-1 
(a) the Chief Secretary to Government, who shall be 
the Chairperson, ex-officio; 
(b) the Secretary to Government, Finance 
Department, ex-officio; 
(c) t he Chief  Executive Officer of the Board, who 
shall be the Member-Secretary, ex-officio; and 
(d) experts in the fields of finance, economics, 
commerce, infrastructure  and the like not 
exceeding two, as may be nominated by the 
Chairperson of the Executive Committee. 
 
(3) The tenure and the terms and conditions of 
appointment of the experts shall be as prescribed in the 
regulations. 
 
1 Amended vide Tamil Nadu Infrastructure Development (Amendment) Act, 2022 Act No. 
37 of 2022 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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10. Meetings of the Executive Committee.— (1) The 
Executive Committee shall meet at such time and place and 
shall observe such rules of procedure in regard to transaction 
of business at its meetings, including the quorum at such 
meetings as may be provided in the regulations. 
(2) When the Chairperson of the Executive Committee 
is absent, any other member chosen by the members present 
from amongst themselves shall preside over the meeting of the 
Executive Committee. 
(3) All questions at a meeting of the Executive 
Committee shall be decided by a majority of the votes of the 
members present and voting and, in the case of any equality 
of votes, the person presiding shall have a second or casting 
vote. 
(4) The Secretary to Government of the administrative 
department shall be the special invitee at the meetings of the 
Executive Committee. 
(5) The Chairp erson of the Executive Committee may 
invite any other person  as he may consider necessary to 
attend a meeting of the Executive Committee. 
11. Proceedings of the Executive Committee not to 
be invalidated .— No act or proceedings of the Executive 
Committee shall be invalid by reason only of the existence of 
any vacanc y amongst its members or any defect in the 
constitution thereof. 
12. Constitution of Other Committees.— The Board 
shall have the power to constitute such other committees as it 
considers necessary  and to delegate to them such of their  
powers as it deems fi t. Such Committees shall consist of 
members of the Board and of such other persons if any, as 
the Board in each case deems fit. 
13. Fees and allowances to non -official members 
and invitees.— The non-official members of the Board or of  
any of its committees and the invitees to the meetings of the 
Board or of any of its committees shall be paid such fees and 
allowances, as may be prescribed in the rules. 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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CHAPTER-III. 
PROJECT IDENTIFICATION, PRIORITIZATION 
AND IMPLEMENTATION. 
14. Project Identification and Pr ioritization1—       
(1) The Board, on its own accord or on a study or survey 
caused to be conducted or based on inputs received from a 
third party, on identifying or conceptualizing a Project to be 
developed, managed and operated in this State, shall 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 shal l be deemed that the 
public agency has no views to offer. 
(2) Any public agency may also identify or 
conceptualize a Project to be developed, managed and 
operated in this State and send proposal therefor 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 public 
agency under sub-section (2), shall examin e the same with 
reference to the following factors, namely:- 
(i) the cost-benefit analysis of the Project including the 
socio-economic cost-benefit; 
(ii) the cost effectiveness of implementation through 
public-private partnership with a value for money test, as may 
be prescribed in the regulations; 
(iii) the possibility of specifying Project performance 
parameters and measuring their outcomes; 
(iv) the risk sharing possibilities with the private sector 
participant; 
 
1 Delegated full powers to Ex ecutive Committee vide B.P.No. 470 Dated. 
26.07.2022  
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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(v) the te chnological and managerial advan tages that 
may accrue due to private sector participation; and 
(vi) the socio -economic factors which may affect 
investment by the private sector participant. 
(4) The Board, shall cause the feasibility study and  
after satisfying itself as to the feasibility  of the proposed 
Project, recommend the same to the Government, indicating 
specifically as to whether it may be implemented through 
public sector mode or through public–private partnership. 
(5) The Board shall cause the details of projects 
recommended under sub-section (4), to be published on its 
website and on such other websites, as may be prescribed in 
the rules: 
Provided that the Board may, for reason to be recorded 
in writing, choose not to publish the details of a Project. 
(6) On receipt of proposal f or implementation of the 
Project under sub-section (4), the Government shall consider 
the same and communicate its deci sion on the 
implementation of the Project including the mode of  its 
implementation, to the Board ordinarily within thirty days. 
15. Project Implementation through public sector 
mode1 — (1) In respect of a Project decided by the 
Government t o 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. 
(2) Deleted2 
 
16. Project implementation through public-private 
partnership3 — In respect of Project s decided by the 
Government to be implemented through public-private 
 
1 Delegated full powers to Executive Committee vide B.P.No. 470 Dated. 26.07.2022 
2 Deleted vide Tamil Nadu Infrastructure Development (Amendment) Act, 2022 Act No. 37 
of 2022 
3 Delegated full powers to Executive Committee vide B.P.No. 470 Dated. 26.07.2022 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
  13 
partnership, the Board shall cause the sponsoring agency to 
publish the details of the proposed project in such form and 
in such manner, as may be prescribed in the regulations, 
inviting obje ctions 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 prescribed in the regulations. 
17. Detailed P roject study and Project 
structuring1— The Board, on receipt of the report from the 
sponsoring agency under section 16, shall consider in 
consultation with the administrative department and after 
causing the detailed Project study, if it considers necessary, 
finalise the scope and st ructure 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 Schedule II. 
18. Procuring entity for Projects2— (1) Every public 
agency designated by the Board to implement a Project shall 
be a procuring entity under the Tender Act (Tamil Nadu Act 
43 of 1998): 
Provided that the Board may, for any class of Project as 
may be prescribed in the rules, be the procuring entity under 
the Tender Act. 
(2) No procurement under this Act shall be made by the 
procuring entity except by tender, following the provisions 
contained in the Tender Act. 
(3) The tender documents shall be i n the form and 
manner as may be prescribed in the regulations: 
Provided t hat for any class of Project as may be 
prescribed in the regulations, the p rocuring e ntity shall 
submit the tender documents for prior approval of the Board. 
 
1 Delegated full powers to Executive Committee vide B.P.No. 470 Dated. 26.07.2022 
2 Delegated full powers to Executive Committee vide B.P.No. 470 Dated. 26.07.2022 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
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(4) The pro curing entity shall, in respect of Projects 
identified by the Board, intimate the name and address of the 
tenderer whose tender has been accepted, to the Board and 
shall also obtain its approval on the concession agreement to 
be entered into with such tenderer. 
19. Appointment of Project Manager and Experts1— 
(1) The Board may, if it considers necessary, shall direct the 
sponsoring agency to appoint a person, who has knowledge 
and experience in the working of public-private partnership 
modes and processes, for such period as may be prescribed in 
the regulations, as Project Manager for a public-private 
partnership Project. The Project Manager, so appointed shall 
be responsible for the management and tendering of the 
Project. 
(2) A public-private p artnership project for which a 
Project Manager is appointed, the sponsoring agency shall, 
make avai lable the services of the officers serving in that 
agency who possess expertise in the fields of risk 
management, contingency p lanning, quality assurance and 
performance management, public sector accounting and 
financial management, to assist the Project Manager: 
Provided that, if expert in a field is not available within 
the sponsoring agency, the agency may engage the services of 
a practicing consultant. 
20. Project Management Facility  — The Government may, 
by notification, constitute an agency with such number of 
members, with such qualification, as may be prescribed in the 
regulations to be called the Project Management Facilit y for 
the management and supervision of any Project. The Project 
Management Facility shall exercise such powers and perform 
such functions, as may be prescribed in the regulations.  
21. Monitoring of Project Implementation.— (1) The Board 
shall monitor the implementation of all Projects including the 
enforcement of concession agreements. 
 
1 Delegated full powers to Executive Committee vide B.P.No. 470 Dated. 26.07.2022 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
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(2) The Board may, for the said purpose,- 
(a) require the submission of periodical or special 
reports from the sponsoring agency, in such form and 
manner, as may be prescribed in the regulations; 
(b) give directions to the sponsoring agency to 
maintain project documentation in such form and manner, as 
may be prescribed in the regulations; and 
(c) give such other directions to the sponsoring 
agency as it deems fit. 
(3) The Bo ard may make recommendations to the 
Government for corrective actions where projects appear to be 
failing to achieve their objectives. 
22. Infrastructure cess, user charges and f ees.—    
(1) The Government may levy Infrastructure cess at such 
rates and for such period, as may be prescribed in the rules. 
(2) The Board may levy user charges on the users of the 
infrastructure facility a nd fees for the services rendered, at 
such rates, as may be prescribed in the rules. 
23. Abuser c harge.— The Board may levy ab user 
charge at such rate, as may be prescribed in the rules, on any 
concessionaire f or abus e of any right accorded in the 
concession agreement: 
Provided that no such abuser cha rge shall be levied 
unless the concessionaire is given a reasonable opportunity of 
showing cause against such levy. 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
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CHAPTER-IV. 
FINANCE, ACCOUNTS AND AUDIT. 
24. Tamil Nadu Infrastructure Development Fund.— 
(1) The Government shall, by notification, constitute a Fun d1 
to be called the Tamil Nadu Infrastructure Development Fund 
with an initial corpus of such amount, as may be specified in 
that notification. 
(2) The Fund may be credited with the grants made by 
the Government from time to time for the  purpose and the 
amount collected as infrastructure cess. 
(3) The Fund may also be credit ed with the 
contributions received from public bodies, multilateral lending 
agencies or other financial institutions. 
(4) The Fund  may, with the recommendation of the 
Board, be utilised for providing financial support to facilitate 
design, development, working, administration, management of 
Projects. The Fund may also be utilised for such  other 
purposes, as may be prescribed in the rules. 
(5) The Fund shall be managed and utilised by the 
Government in such manner, as may be prescribed in the 
rules. 
25. Project Preparation Fund.— (1) The Government 
shall, by notification, constitute a Fund 2 to be called the 
Project Preparation Fund wit h an initial corpus of such 
amount, as may be specified in that notification. 
(2) The Fund may be credited with the grants made by 
the Government from time to time for the purpose and the 
amount collected as fees, user charges and abuser charges. 
 
1  Tamil Nadu Infrastructure Development Fund was constituted with an init ial corpus of 
Rs.10,00,00,000/- (Rupees Ten c rores only).  [Notification No.II(2)/FIN/193(a-1)/2013 
published in Part II –Section 2 of the Tamil Nadu Government Gazette Extraordinary 
No.43, dated the 15th Febr uary 2013.  -  G.O. Ms.No.39, Finance(Infrastructure Cell) 
Department, dated 14-2-2013.] 
2   Project Preparation Fund was constituted with an initial corpus of Rs.5,00,00,000/ - 
(Rupees Five crores only).  [ Notification No.II(2)/FIN/193(a-2)/2013 p ublished in        
Part II –Section 2 of the Tamil Nadu Government Gazette Extraordinary No.43, dated the 
15th February 2013.  -  G.O. Ms.No.40, Finance(Infrastructure Cell) Department, dated 
14-2-2013.] 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
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  17 
(3) The  Fund may, with the prior concurrence of the 
Government, also be credited with the contributions received 
from public bodies, multilateral lending agencies or other 
financial institutions. 
(4) The Fund may be u tilised to provide financial 
support for conducting studies, hiring the services of experts 
and consultants, preparing feasibility studies, detailed project 
studies, capaci ty building, research and for such other 
purposes, as may be prescribed in the rules. 
(5) The Fund shall be managed and utilised b y the 
Board in such manner, as may be prescribed in the rules. 
26. Accounts and a udit.— (1) The accounts of the 
Board shall be maintained in such manner and in such form, 
as may be prescribed in the rules. 
(2) The Board shall prepare an annual statement of  
accounts in such form, as may be prescribed in the rules. 
(3) The accounts of the Board shall be audited once in 
a year by a person duly qualified to act as an auditor of a 
company under section 226 of the Com panies Act, 1956  
(Central Act 1 of 1956). 
(4) The accounts of the Board as certified by the 
auditor together with audit report along with the remarks of 
the Board thereon s hall be forwarded to the Government 
within such time, as may be prescribed in the rules. 
(5) The Government may, by order, direct the Board to 
take such action as may be specified in the order to remedy, 
within such time as may be specified therein, the de fects, if 
any, disclosed in the audit report, and the Board shall comply 
with such direction. 
27. Annual report.— (1) The Board sh all, as soon as 
may be, after the end of each financial year, prepare and 
submit to the Government, before such date and in su ch 
form, as may be prescribed in the rules, a report giving an 
account of its activi ties during the previous year and the 
report shall also give an account of the activities, if any, which 
are likely to be undertaken by the Board in the current 
financial year. 
(2) The Government shall cause every such report to be 
laid before the Legislative Assembly, as soon as may be, after 
its receipt under sub-section (1). 
 
 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
 18 
CHAPTER-V. 
MISCELLANEOUS. 
28. Members, officers and employees of the Board 
to be public servants.— The Chairperson, Vice-Chairperson, 
Members, Member – Secretary and officers and employees  of 
the Board shall be deemed, when acting or purporting to act 
in pursuance of any of the provisions of this Act, or any rule  
or regulation or order or direction made or issued under this 
Act, to be public servants within the meaning of section 21  of 
the Indian Penal Code (Central Act XLV of 1860). 
29. Protection of action taken in good faith .— No 
suit or other legal proceedings shall lie against the 
Government, the Board or any member thereof or any officer 
or employee or person acting under the d irection of the 
Government or the Board in res pect of anything which is in 
good faith done or intended to be done in pursuance of this 
Act or any rule or regulation or order or direction made or 
issued under this Act. 
30. Power to make Rules.— (1) The Government may 
make rules for carrying out the purposes of this Act. 
(2) In particular and without prejudice to the generality 
of the foregoing power, such rules may provide for all or any 
of the following matters, namely:- 
(a) the websites in which the list o f Projects 
recommended by the Board for implementation under section 
14 shall be published; 
(b) the proportion of the cost of Project that may be 
provided as subsidy by the Government; 
(c) incentives that may be provided to a 
concessionaire as State support;  
(d) the tenure of experts in the Executive Committee 
and the terms and conditions of their appointment; 
 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
  19 
(e) the fees and allowances payable to the non -
official members of the Board or of any of its committees and 
to the special invitees to the meetings of the Board or of any of 
its committees; 
(f) the class of Projects for which the Board shall be 
the procuring entity under the Tender Act; 
(g) the rate and period for which Infrastructure cess 
may be levied; 
(h) the rates at which the Board may levy fees, user 
charges and abuser charge; 
(i) the pur poses for which the Tamil Nadu 
Infrastructure Development Fund and the Project Preparation 
Fund shall be utilised; 
(j) the man ner in which the Tamil Nadu 
Infrastructure Development Fund and the Project Preparation 
Fund shall be managed and utilised; 
(k) the manner and form in which accounts shall be 
maintained by the Board; 
(l) the form in which the annual statement of 
accounts of the Board shall be prepared; 
(m) the time limit within which the accounts and the 
audit report shall be forwarded by the Board t o the 
Government; 
(n) the form of the Annual report and the time limit 
within which it shall be submitted by the Board to the 
Government; 
(o) any other matter which is to be, or may be, 
provided for in the rules. 
 
 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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31. Power to make regulations.— (1) The Board may 
make regulations consistent with the provisions of this Act 
and the rules made thereunder. 
(2) In particular and without prejudice to the generality 
of the foregoing power, such regulations may provide for all or 
any of the following matters, namely:- 
(a) the information that may be assessed or 
ascertained through feasibility study and detailed Project 
study; 
(b) the posts, that may be created for appointment of 
officers and staff of the Board, their sa lary, allowances and 
conditions of service; 
(c) the form and manner of tender documents and 
the class of Projects in respect of which, the tender 
documents require prior approval of the Board; 
(d) the time and place of meetings of the Board and 
of the Exec utive Committee, the procedure to be followed in 
regard to the transaction of business at such meetings and 
the quorum at such meetings; 
(e) the ‘value for money test’ to ascertain the cost of 
implementation of a Project through public sector mode and 
through public-private partnership, in  order to compare and 
adopt the mode of implementation, which is cost effective; 
(f) the form and manner in which the details of the 
proposed Project shall be published by the sponsoring agency 
under section 16; 
(g) the p eriod within which the sponsoring agency 
shall submit a report to the Board under section 16; 
(h) period of experience for appointment as Project 
Manager; 
(i) the number of  members of the Project 
Management Facility, their qualifications, powers and 
functions; 
(j) the form and manner of submission of periodical 
and special reports by the sponsoring agency to the Board 
under section 21; 
(k) any other matter which is to be, or  may be 
provided for in the regulations. 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
  21 
32. Power to amend Schedules .— The Government 
may, by notification, in the Tamil Nadu Government Gazette 
amend any of the Schedules to this Act. 
33. Power to remove difficulties .— If any difficulty 
arises in giving effect to the provisions of this Act, the 
Government may, by notification, make such  provision not 
inconsistent with the provisions of this Act as may appear to 
them to be necessary or expedient for the purpose of removing 
the difficulty: 
Provided that no such notification shall be issued after 
the expiry of two years from the date of commencement of this 
Act. 
34. Power to exempt .— The Government may, by 
notification, exempt any Project from all or any of the 
provisions of this Act, for reasons to be recorded. 
35. Publication of rules, regulations and 
notifications and placing them before the Legislature .— 
(1) ( a) All rules or regulations made or notifications issued 
under this Act shall be published in the Tamil Nadu 
Government Gazette and, unless they are expressed to come 
into force on a particular date, shall come into force on the 
date on which they are so published. 
(2) Every rule or regulation made or notification issued 
under this Act shall, as soon as possible after it is made or 
issued, be placed on the table of the Legislative Assembly and 
if, before the expiry of the session in which it is so placed or 
the next session, the Legislative Assembly agrees in making 
any modification in any such rule or regulation or notification 
or the Legislative Assembly agrees that the rule or regulation  
or notification should not be made or issued,  the rule or 
regulation or notification shall, thereafter, have effect only in 
such modified form or be of no effect, as the case may be, so, 
however, that any such modific ation or annulment shall be 
without prejudice to the validity of anything previously  done 
under that rule or regulation or notification. 
36. Act to override other State laws .— The 
provisions of this Act shall have effect notwithstanding 
anything inconsistent therewith contained in any other State 
law for the time being in force. 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
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SCHEDULE - I. 
[See section 2(i)] 
SECTORS. 
 
  (1) Agriculture Infrastructure including Marketing and 
Post harvest infrastructure. 
  (2) Development of Minor Minerals. 
  (3) Drinking and Industrial Water supply s ystems, 
Desalination Plants. 
  (4) Education related Infrastructure. 
  (5) Fisheries. 
  (6) Gas and Gas Works. 
  (7) Health Infrastructure. 
  (8) Housing including Slum Developmen t and 
Development of Satellite towns. 
  (9) Industrial Estates including Industrial Parks and 
Special Economic Zones. 
(10) Information and Communication Technology related 
Projects. 
(11) Inland Waterways other than National Waterways. 
(12) Irrigation including Dams, Irrigation Structures, 
Canals. 
(13) Land Reclamation Projects. 
(14) Ports (other than major ports) and Harbours thereof. 
(15) Power Generation, Transmiss ion and Distribution 
Systems. 
(16) Roads, Bridges, including Rail over and under 
Bridges and By-passes. 
(17) Solid Waste Management. 
(18) Sports & Recreation Infrastructure. 
(19) Tourism and Hospitality Projects. 
(20) Urban Transpo rtation System, Bus terminals,    
multi level parking facilities. 
(21) Waste Water, Sewerage treatment systems. 
 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
  23 
SCHEDULE – II. 
[See section 17] 
NATURE OF CONCESSION AGREEMENTS.  
1. Investment or Financing related Agreements. 
(i) Build-Operate-and-Transfer (BOT) – A contr act ual 
arrangement whereby the c oncessionaire undertakes the 
construction, including financing, of a given infrastructure 
facilit y, and the operatio n and maintenance thereof. The 
concessionaire operates the facili ty over a fixed term during 
which they are allowed to charge the users appropriate tolls, 
fees, rentals and charges as incorporated in the contract to 
enable the recovery o f investment in the Project. The 
concessionaire transfers the facility to the Government at the 
end of the fixed term that shall be specified in the Concession 
agreement. 
(ii) Build-Own-and-Operate (BOO) – A contractual 
arrangement whereby the concessionaire is authorized to 
finance, construct, own, operate and maintain an 
infrastructure or devel opment facility from which the 
concessionaire is allowed to recover the total investment by 
collecting user levies from facility users. The ownership of the 
land wi ll be vested with the Go vernment. Under this mode, 
the c oncessionaire owns the asset s of the facility and may 
choose to assign its  operation and maintenance to a facility 
operator. The transfer of the facility to the Government is not 
envisaged in this str ucture; however, the Government may 
terminate its obligations after the specified time period. 
(iii) Build-Own-Operate-Transfer(BOOT) – A 
contractual arrangement whereby t he c oncessionaire is 
authorised to finance, construct, maintain and operate a 
Project and whereby such Project is to vest in the 
concessionaire for a specified period. D uring the operation 
period, the concessionaire  will be permitted to charge user 
levies specified in the Concession agreement, to recover the 
investment made in the Project. The concessionaire is liable to 
transfer the Project to the Government after the expiry of the 
specified period of operation. 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
 24 
(iv) Build-Transfer-and-Operate (BTO) – A contractual 
arrangement whereby the Government contracts out an 
infrastructure facility to the concessionaire to construct the 
facility on a turn -key basis, assuming cost overruns, delays 
and specified performance ris ks. Once the facility is 
commissioned satisfactorily, the concessionaire is given the 
right to operate the facility and collect user levies specified in 
the Concession agreement. The title of the facilities alw ays 
vests with the Government in this arrangement. 
(v) Design-Build-Finance-Operate-Transfer (DBFOT) - 
A contractual arrangement whereby the concessionaire is 
bestowed with  the responsibility of designing, building, 
financing and operating the facility bef ore transferring the 
Project to the Government  after the expiry of the specified 
period. The concessionaire operates the facility over a fixed 
term during which they are al lowed to charge the users 
appropriate tolls, fees, rentals and charges as incorporated in 
the contract to enable the recovery of i nvestment in the 
Project. 
2. Operations and Maintenance related Agreements. 
(i) Management Agreement  – A contractual 
arrangement whereby the Government entrusts the operation 
and management of a Project to the concessionaire for the 
period specified in the  agreement on payment of specified 
consideration. In such agreement, the Government may 
charge the user levies and collect the same either by itself or 
entrust the collection for consideration to any concessionaire 
who shall after collecting the user levies, pay the same to the 
Government. 
(ii) Lease Management Agreement  – A contractual 
arrangement whereby the Government leases a Project owned 
by it to the concessionaire which is permitted to operate and 
maintain the Project for the period specified in the contract.   
The concessionaire is allowed to charge the users appropriate 
fees, rentals and charges as specified in the agreeme nt to 
enable the recovery of investment in the Project. 
 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
  25 
(iii) Build-Lease-and-Transfer(BLT) – A contractual 
arrangement whereby t he concessionaire undertakes to 
finance and construct the Project and on its completion hands 
it over to the Government. The G overnment then gives the 
facility to the same operator on a lease arrangement for a 
fixed period, after which ownership of the fac ility is 
automatically transferred to the Government. 
(iv) Rehabilitate-Operate-and-Transfer(ROT) – A 
contractual arrangement whereby an existing facility is 
handed over to the concessionaire to invest, refurbish, operate 
and maintain for a period, at the expiry of which the facility is 
returned to the Government. The concessionaire operates the 
facility over a fixed term during which they are allowed to 
charge the users appropriate fees, rentals and charges as 
specified in the contract to enable the recovery of investment 
in the Project. 
(v) Rehabilitate-Own-and-Operate(ROO) – A 
contractual arrangement whereby an existing facilit y is 
handed over to the concessionaire to invest, refurbish, operate 
and maintain th e development facility from which the 
concessionaire is allowed to recover the total investment by 
collecting user levies from facility users.  The ownership of the 
land shall be vested with the Government. The transfer of the 
facility to the Government is  not envisaged in this 
arrangement; however, t he Government may terminate its 
obligations after a specified time period. 
 
  
 
THE TAMIL NADU INFRASTRUCTURE DEVELOPMENT         
ACT, 2012. 
 
 26 
Notifications issued 
1. In exercise of the pow ers conferred by sub -section (4) of 
Section 1 of the Tamil Nadu Infrastructure Development Act, 
2012 (Tamil Nadu Act No. 22 of 2012), the Governor of Tamil 
Nadu hereby appoints the 15 th day of June 2012 , as the 
date on which the said

Excerpt shown. Open the full act in Lexace.

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