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GUJARAT INFRASTRUCTURE DEVELOPMENT ACT, 1999
(1) This Act may be called the Gujarat Infrastructure Development Act, 1999.
(2) It extends to the whole of the State of Gujarat.
(3) It shall be deemed to have come into force on the 28th April, 1999.
In this Act, unless the context otherwise requires,--
(a) "Board" means the Gujarat Infrastructure Development Board established under section 17;
(b) "concession agreement" means a contract of the nature specified in Schedule II between a developer and the State Government, a Government agency or a specified Government agency, relating to a project;
(c) "developer" means a person with whom concession agreement is entered into by the State Government, a Government agency or a specified Government agency;
(d) "escrow account" means a bank account in which cash is deposited or from which cash is withdrawn in such manner as specified in the concession agreement;
(e) "Government agency" means a Corporation or
Any person may participate in financing, construction, maintenance and operation of a project.
(1) (a) A person may enter into a concession agreement of the nature specified in Schedule n with the State Government, a Government agency or a specified Government agency.
(b) The scheme for a concession agreement shall be such as may be prescribed.
(2) Where the Board, having regard to the nature of a project, is satisfied that it is necessary so to do, it may permit combination of two or more agreements of the nature specified in Schedule n into one agreement.
(3) No concession agreement shall provide for transfer of a project by a developer to the State Government, a Government agency or a specified Government agency later than thirty-five years from the date of agreement.
(4) (a) The State Government may, by notification in the Official Gazett
(1) A proposal prepared by the State Government, a Government agency or a specified Government agency for participation by a person other than the State Government, a Government agency or a specified Government agency in financing, construction, maintenance and operation of the project, the cost of which exceeds such amount as may be prescribed, shall be submitted to the Board alongwith proposed concession agreement relating thereto for its consideration and different amounts of cost may be prescribed for different nature of projects.
(2) The Board shall consider the proposal and the proposed concession agreement submitted to it under sub-section (1) or sub-section (1) of section 10 and may either recommend with or without modifications or not recommend, or return the proposal and concession agreement for reconsideration of the State Government, the Government agency or, as the cas
The State Government, a Government agency or a specified Government agency may provide to a person assistance in the following manner, namely:--
(a) participation in the equity of the project not exceeding forty-nine per cent, of the total equity;
(b) subsidy not exceeding fifteen per cent, of the cost of the project;
(c) senior or subordinate loans;
(d) guarantee by the State Government, a Government agency or a specified Government agency in respect of liability of a Government agency arising out of a concession agreement;
(e) opening and operation of escrow account;
(f) conferment of a right to develop any land;
(
No concession agreement for undertaking a project shall be entered into with any person unless the procedure specified in sections 8 and 9 or, as the case may be, sections 8 and 10 has been followed.
(1) A concession agreement for undertaking a project may be entered into with a person who is selected through a competitive public bidding as provided in section 9 or by direct negotiation as provided in section 10.
(2) The matters relating to competitive bidding and direct negotiation shall be such as may be prescribed.
(1) On the acceptance of the recommendation of the Board made under sub-section (2) of section 5, the State Government, the Government agency or, as case may be, the specified Government agency shall select a developer for the project through the competitive public bidding in the manner provided hereunder.
(a) A public notice inviting persons to participate in competitive public bidding for undertaking the project--
(i) shall be published once in a week for two consecutive weeks in atleast three newspapers, two in general circulation and one in circulation in the area in which the project is to be undertaken, and
(ii) may be published by any other means of mass communication.
(b) (i) Any person who intends to participate in the competitive public bi
(1) Where--
(i) a proposal for participation by a person for undertaking a project and a proposed concession agreement have not been prepared by the State Government, a Government agency or a specified Government agency for being submitted to the Board under sub-section (1) of section 5, and
(ii) a proposal for undertaking a project and a proposed concession agreement prepared by a person are submitted to the State Government, a Government agency or a specified Government agency;
the State Government, the Government agency or, as the case may be, the specified Government agency may--
(a) consider the proposal and the proposed concession agreement from all aspects (including technical and financial) and if necessary, modify the same in consultation w
(1) Where, in pursuance of a concession agreement with the State Government, the Government agency or, as the case may be the specified Government agency,--
(a) (i) the developer has constructed a project for providing goods or services; and
(ii) the project vests in the developer for a period specified in the concession agreement; and
(iii) on expiry of such period, the project is to vest in the State Government, the Government agency or, the specified Government agency,
the developer may charge such amount as specified in the agreement for providing goods or services by the project so long as the project continues to vest in him, or
(b) an existing project is vested to a person to renovate, operate and
Where a provision is made in a concession agreement requiring the developer to maintain the project constructed by him for a period specified in such agreement,--
(a) there shall be opened an escrow account by the developer, the money out of which shall be expended for the maintenance of the project in accordance with the provisions made in the concession agreement or in any other agreement with the State Government, the Government agency or, as the case may be, the specified Government agency; or
(b) the developer shall execute a bond in the favour of the State Government, the Government agency or, as the case may be, the specified Government agency binding himself to make payment of such amount of money as specified in the bond to the State Government, the Government agency or, as the case may be, the specified Government agency, in ca
A developer shall provide at his expense, training to the employees of the State Government, the Government agency or, as the case may be, the specified Government agency in respect of maintenance or operation of the project in accordance with the provisions made in the concession agreement or in any other agreement with the State Government, the Government agency or, as the case may be, the specified Government agency.
Where the project is transferred to the State Government, the Government agency or the specified Government agency according to the provisions of the concession agreement, all the rights of the developer in respect of the project shall stand transferred to the State Government, the Government agency or, as the case may be, the specified Government agency.
(1) Where a concession agreement is terminated by the State Government, the Government agency or, as the case may be, the specified Government agency with the consent of the developer or in absence of any default of the developer, the developer shall be entitled to such amount of compensation for such termination as specified in the concession agreement.
(2) A concession agreement may provide that if a default specified therein is committed by the developer, the State Government, the Government agency or, as the case may be, the specified Government agency shall, after giving to the developer an opportunity of being heard in such manner as may be prescribed, be entitled to terminate the concession agreement and--
(a) take over the project without repaying the amount invested by the developer in the equity and shall assume the liability o
(1) The State Government may, by notification in the Official Gazette, add to Schedule I any other project which falls within the executive power of the State and thereupon the project so added shall be deemed to be a project specified in Schedule I for the puposes of this Act.
(2) Every notification issued under sub-section (1) shall be laid before the State Legislature as soon as may be after it is issued.
As soon as may be after the commencement of this Act, the State Government may, by notification in the Official Gazette, establish a Board to be called the Gujarat Infrastructure Development Board with effect from such date as may be specified in the notification.
The head quarters of the Board shall be at Gandhinagar or at such other place as the State Government may, by notification in the Official Gazette, specify.
The Board shall consist of Chairman, Vice-Chairman, Member-secretary appointed by the State Government and such number of other members not exceeding fifteen, who shall be appointed by the State Government.
Every member shall hold office during the pleasure of the State Government.
If any vacancy arises in the Board or any committee thereof by reason of death, resignation or otherwise, the same shall be filled up by the State Government as soon as possible.
The Board shall meet at such time and place and shall observe such rules of procedure in regard to transaction of its business at its meeting (including the quorum at such meeting) as may be provided by regulations.
The Board may associate with itself any person whose assistance or advice is required in performing any of its functions under this Act.
The Board may obtain the information with regard to the progress of the project which was submitted to it under sub-section (1) of section 5 or which was undertaken as per the provisions of section 10 from the State Government, a Government agency or a specified Government agency.
The Board may constitute an Executive Committee and such other committees consisting of such number of members, for performing such of its functions, as may be provided by regulations.
(1) The Board may appoint such officers and servants as it may consider necessary for the efficient discharge of its functions.
(2) The remuneration, allowances and conditions of service of the officers and servants of the Board shall be such as may be provided by the regulations.
No act or proceeding of the Board or of any of its committees shall be invalid merely by reason of--
(a) any vacancy therein or any defect in the constitution thereof, or
(b) any irregularity in its procedure not affecting the merit of the case.
The functions of the Board shall be as follows, namely:--
(a) to promote participation of a person in financing, construction, maintenance and operation of any project irrespective of its cost;
(b) to advise the State Government, a Government agency or a specified Government agency on matters of policy in respect of participation referred to in clause (a);
(c) to lay down priorities of projects to be undertaken by the State Government, a Government agency or a specified Government agency;
(d) to consider the proposal for undertaking a project and the proposed concession agreement submitted to it and to recommend with or without modifications or not recommend or return the proposal and proposed concession agreement for reconsideration of the State Go
(1) The Board shall have its own fund.
(2) All sums which may, from time to time, be paid to the Board by the State Government or by any body and the amount charged by the Board under section 32 shall be carried to the fund of the Board and all payments shall be made therefrom.
(3) The Board may spend such sums as it thinks fit for the performance of its functions under this Act, and such sums shall be treated as expenditure payable out of the fund of the Board.
(1) The accounts of the Board shall be prepared and maintained in such form and in such manner as may be provided by regulations.
(2) The Board shall cause to be prepared for each financial year an annual statement of accounts in such form as may be provided by regulations.
(3) The accounts of the Board shall be audited by an auditor duly qualified to act as an auditor of the companies under section 226 of the Companies Act, 1956 (I of 1956).
(4) The auditor shall send a copy of the report together with an 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.
(5) The State Government shall cause the audit report together with audited copy of accounts to be
(1) The Board shall during each financial year prepare in such form and at such time as may be provided by regulations, an annual 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 as soon as may be after the reciept of the report under subsection (1).
The Board may charge such amount as may be determined by it for considering the proposal and the proposed concession agreement under sub-section (2) of section 5.
All members and officers and servants of the Board shall, while acting or purporting to act in pursuance of the provisions of this Act or any rules or regulations made thereunder, be deemed to be public servants within the meaning of section 21 (45 of 1860) of the Indian Penal Code.
No suit, prosecution or other legal proceeding shall lie against the Board or any member and officer or servant of the Board for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act or any rules and regulation made thereunder.
A concession agreement shall contain an arbitration clause providing that--
(a) all parties to the agreement shall submit to arbitration any dispute which may arise between them out of the provisions of the agreement,
(b) the place of arbitration shall be at Ahmedabad or any other place in India agreed to by the parties, and
(c) the dispute referred to in clause (a) shall be decided in accordance with the law for the time being in force in India.
Nothing contained in the Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 (Guj. 4 of 1992) shall apply to any arbitration arising out of the provisions of the concession agreement entered into by the State Government, a Government agency or a specified Government agency with a developer.
(1) The State Government may, by notification in the Official Gazette, 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 scheme for concession agreement under clause (b) of sub-section (1) of section 4;
(b) the amount of cost of a project exceeding which a proposal shall be submitted to the Board under sub-section (1) of section 5; and different amounts of costs for different nature of projects;
(c) the matters relating to competitive public bidding and direct negotiation under sub-section (2) of section 8;
(d) the manner in which the cost
(1) The Board may make regulations not inconsistent with 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 power, such regulations may provide for all or any of the following matters, namely :-
(a) the time and the place at which the Board shall meet and rules of procedure the Board shall observe in regard to transaction of its business at its meeting under section 22;
(b) 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 section 25;
(c) the remuneration, allowances and conditions of
(1) Nothing in this Act shall affect the validity of--
(a) a concession agreement entered into by the State Government, a Government agency or a specified Government agency with any person before the date of the commencement of this Act (hereinafter referred to as "the said date"),
(b) (i) a letter of intent or any other writing issued to a person before the said date entrusting to him a project for execution if a concession agreement is entered into with respect to the project in pursuance of the said letter of intent or the writing, by the State Government, a Government agency or a specified Government agency with such person within a period of one year from the said date or such further period as may be extended by the State Government,
(ii) a concession agreement entered into under sub-cla
(1) The Gujarat Infrastructure Development Ordinance, 1999 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.
SCHEDULE I
(See clause (j) of section 2)
PROJECTS
1. Power Generation, Transmission and Distribution Systems.
2. Roads, Bridges and By-passes.
3. Ports (other than major ports) and Harbours thereof.
4. Urban Transportation.
5. Dams.
6. Water Storage, Water Supply and Sewerage System.
7. Irrigation.
8. Land Reclamation Projects.
9. Industrial Estates including Industrial Parks.
10. Tourism Project
SCHEDULE II
(See sub-section (1) of section 4)
NATURE OF CONCESSION AGREEMENT
1. Build Own Operate and Transfer Agreement : An agreement whereby the developer undertakes to finance, construct, maintain and operate a project and whereby such project is to vest in the developer for a specified period. During the period of operation of the project by the developer, he may be permitted to charge user charges as specified in an agreement. The developer is required to transfer the project to the State Government, a Government agency or, as the case may be, a specified Government agency after the expiry of the period of operation.
2. Build Own Operate and Maintain Agreement : An agreement whereby a developer undertakes to finance, construct, operate and ma
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