LexThe Uttrakhand Ceiling On Government Guarantee Act, 2016
Uttarakhand · state statute
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The Uttrakhand Ceiling On Government Guarantee Act, 2016
(Uttrakhand Act No. 41 Of 2016)
AN
ACT
to provide for regulation of Government guarantees and other matters connected therewith or
incidental thereto,
It is hereby enacted by the Uttrakhand Legislative Assembly in the Sixty-seventh Year of
the Republic of India as follows :-
Short title and
commencement
1 (1)This Act may be called the Uttrakhand Ceiling on Government
Guarantees Act, 2016.
(2) It shall come into force on such date a s the Government may by
notification in the Official Gazette, appoint.
Definition 2 In this Act, unless the context otherwise requires-
(a) ‘Government’ means the Government of Uttarakhad;
(b) ‘Government Guarantees’ includes the guarantee given by the State
Government on behalf of Departmental Undertakings, Public sector
Undertakings, Local Authorities, Statutory Boards and Corporations,
Co-operative Institutions and other authorities and agencies under
the Government of Uttarakhand;
(c) ‘prescribed’ means prescribed by rules made under the Act;
(d) ‘private company’ means a private company as defined in section 03
of the companies Act, 1956;
(e) ‘private institution’ means who is receive less than 50 percent of its
core funding from government agencies;
(f) ‘State’ means the State of Uttarakhand.
Ceiling on
Government
Guarantees
3 (1) The total outstanding Government guarantees as on the first day of
April of any year shall not exceed 1 percent of the Gross State Domestic
Product estimated for the year.
(2) The total fresh Government guarantees given in a year shall not
exceed 0-03 percent of Gross State Domestic product estimated for the
years;
Provided that under the extreme exigencies and occurrence of
natural calamities of the order which require the Government to take
immediate fiscal policy measures, the Government may exceed the
ceiling prescribed under sub-section (1) and (2).
Restrictions on
Government
Guarantees
4 Notwithstanding anything contained in any other Acts:
(1) The Government guarantee shall ordinarily be extended by the
Government on behalf of the Departmental Undertakings, Public
Sector Undertakings, Local Author ities, Statutory Boards and
Corporations, co -operative Institutions and other Authorities and
Agencies under the Government.
(2) No Guarantees shall be award in respect of loan individual, private
institutions or private companies.
Guarantees
Commission
5 (1) The Government shall charge a minimum of 1.00 per cent of the
amount of Guaranteed loan as guarantees commission, which shall not
be waived under any circumstances.
(2) Depending on the default risk of the project the Government may,
by notification, specify commission at an enhanced rate.
Note- Default risk” means the probability of default by the borrower
on whose behalf the Government Guarantees is given, depending on
the amount borrowed, the type of industry and the economic
situations.
Guarantees
Redemption
Fund
6 (1) The Guarantee commission charged under section 5 shall recover
from the corpus of the Guarantee Redemption fund and it shall be
remitted in the Public Accounts of the States.
(2) The administration of Guarantee Redemption fund shall be in such
manner as may be prescribed.
Power of
Government to
make rules
7 The Government may by notifica tion in the Uttarakhand Gazette,
make rules for the purpose of carrying into effect the provisions of this
Acts.
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