MEGHALAYA INFRASTRUCTURE DEVELOPMENT FINANCE BOARD ACT, 2011

Act No. 11 of 2011

06th April, 2011

AN ACT to provide for constitution, establishment, and sustained operation of a Board for financing of all types of infrastructure in the State and to provide for matters connected therewith or incidental thereto.

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S.1 Short title, extent commencement and applicability

(1) This Act may be called the Meghalaya Infrastructure Development Finance Board Act, 2011.

(2) It extends to the whole of the State of Meghalaya.

(3) It shall come into force on such date as the State Government may by way of notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different sections of this Act.

(4) It shall apply to such Infrastructure Projects as are implemented by or through the Board under the provision of this Act.

S.2 Definitions

In this Act, unless the subject or context otherwise requires,-

(a) "Act" means the Meghalaya Infrastructure Development Finance Board Act, 2011;
(b) "Approved Detailed Project Report" means the Approved Detailed Project Report adopted and published by the Board in accordance with Section 23;
(c) "Bankable Projects" means those Infrastructure Projects which are determined by the Board to be viable for the purpose of financing;
(d) "Board" means the Meghalaya Infrastructure Development Finance Board constituted under Section 3(1);
(e) "Central Government" means the Government of India, its respective departments or any other authorities, agencies and instrumentalities functioning under the direction or control of the Government of India;
(f) "Chairperson" means the chairperson of the Board appointed under Section 4(1);
(g) "Concession" means grant of financial assistance or conferment of right on government property

S.3 Establishment of the Board

(1) As soon as may be after the commencement of this Act, the State Government may, by notification in the Official Gazette constitute and establish a Board to be called the Meghalaya Infrastructure Development Board and the Board shall become operational from such date the State Government may notify in the Official Gazette.

(2) The Board shall:

(a) be a body corporate having a perpetual succession;
(b) have a common seal;
(c) have the power to acquire, purchase, lease, rent or otherwise take possession of any property or assets, both movable and immovable, in its own name.

Provided that any transaction on land shall be subject to the provisions of Meghalaya Transfer of Land (Regulation) Act, 1971;

(d) be capable or suing and being sued; and
(e) have the power to do or perform all such acts and things as a body corporate may legally do or perform.

(3) The head office of the Board shall be situa

S.4 Composition of Board

(1) The Board shall consist of a Chairperson and not less than two and not more than seven other Members to be appointed by the State Government by notification in the Official Gazette.

(2) The composition of the Board established under sub-section (1), shall be as follows:-

Position/Member	Role
(a) The Minister of Finance of the State Government	Chairperson
(b) The Chief Secretary to the State Government	Member
(c) The Additional Chief Secretary/The Principal Secretary, Department of Finance	Member
(d) The Additional Chief Secretary/Principal Secretary to the Chief Minister	Member
(e) The Additional Chief Secretary/Principal Secretary, Planning Department	Member
(f) Three technical experts to be nominated by the State Government	Member
(g) The Minister-i

S.5 Qualification of Members

(1) The Members appointed under clause (f) of section 4 shall be persons of ability, integrity and standing and qualified in the fields of management of Infrastructure Projects, law, finance, economics or commerce.

(2) The minimum qualification and experience in the fields of management of Infrastructure Projects, law, finance, economics or commerce, namely,-

(a) qualifications and experience in the field of management of Infrastructure Projects,- relevant professional qualification and a minimum work experience of ten years after acquiring the professional qualification, in a government department or public sector organization or in a private sector engaged in Infrastructure Projects and having adequate financial credentials in respect of conceptualizing, appraisal, development, financing or implementation of Infrastructure Projects.
(b) qualifications and experience in the field of Law- a serving or a retired District and Sessions Judge or a person qu

S.6 Powers of Chairperson

The Chairperson, shall have the powers of general superintendence and directions in the conduct of the affairs of the Board and shall, preside over the meetings of the Board:

Provided that the Chairperson may delegate such of his powers relating to administrative matters of the Board, as he may think fit, to any other Member or officer of the Board.

S.7 Member's nominees

Every Member of the Board may appoint a nominee to attend a meeting of the Board on his behalf as an observer. Such a nominee may speak on behalf of the Member but is not entitled to vote.

S.8 Tenure of Members

(1) Every Member appointed under section 4(2) (f) shall hold office for 3 years or during the pleasure of the State Government.

(2) The Chairperson and every other Member shall, before entering upon his office, make and subscribe an oath of office and of secrecy in such form, manner and before such authority, as may be prescribed.

S.9 Filling up of casual vacancies

A vacancy caused by the resignation or removal of any Member or by death or otherwise shall be filled up within a period of two months by fresh appointment in accordance with the provisions of this Act.

S.10 Meetings of Board

(1) The Board shall meet at such times and such places, and shall observe such rules of procedure in regard to the transaction of business at its meeting as may be provided by the regulations:

Provided that the Board shall meet at least once every three months.

(2) The meetings of the Board shall be, presided over by its Chairperson or, in his-or her absence by the senior most Member nominated by the Members who are present at the meeting from among themselves.

(3) The quorum required for transacting any business by the Board at its meeting shall be at least four, who shall be present in all the meetings of the Board. Meetings of the Board shall be suspended or terminated if the number of Members present becomes less than the quorum.

(4) A decision of the majority of Board Members present at a meeting of the Board shall be the decision of the Board and, in the event of an equality of votes; the person presiding at the meeting shall have a casting vote in

S.11 Disclosure of interest

(1) If any Member of the Board, or a Member of a committee, or his relative is a director, shareholder, proprietor or partner in the contracting entity or the Concessionaire or is in any way directly or indirectly interested in any project or contract or Concession Agreement entered into or proposed to be entered into or under consideration by the Board, or in any other matter which is the subject of consideration by the Board, and which may cause a conflict of interests in the performance of his or her duties as a Member of the Board, or a Member of a Committee, he or she shall fully disclose the nature of such interest as soon as possible after the commencement of the meeting of the Board or that of the Committee at which the project or the contract or the Concession Agreement or other matter is a subject of consideration, and that Member of the Board, or Member of the Committee shall not take part in the consideration of, or vote on, any question relating to that contract, propo

S.12 Appointment of secretary, experts, professionals and officers and other employees of Board

(1) The Board may appoint a secretary and such other employees as it considers necessary for the efficient performance of its functions under this Act.

(2) The salaries and allowances payable to and other terms and conditions of service of the secretary and officers and other employees of the Board and the number of such officers and other employees shall be such as may be prescribed.

(3) The Board may engage, in accordance with the procedure specified by regulations, such number of experts and professionals of integrity and outstanding ability, who have special knowledge and experience in the sector, to assist the Board in discharging of its functions under this Act.

S.13 Temporary association of persons with Board

The Board may associate with any person whose assistance or advice is required in performing any of its functions under this Act.

S.14 Constitution of Committees

The Board may constitute Committees consisting of such number of Members, and other employees, professionals and officers for performing such of its functions, as may be determined by the Board and such Members, employees, professionals and officers shall be the members of the Committee so constituted.

S.15 Providing information to Board

The Board may obtain information in relation to the progress of any Bankable Project which has been undertaken as per the provisions of this Act.

S.16 Acts and proceedings of Board not to be invalid

No act or proceeding of the Board or of any of its Committees shall be invalid merely by reason that any vacancy therein or any defect in the constitution of the Board, or any defect in appointment of a person acting as Chairperson or a Member or any irregularity in its procedure not affecting the merit of the case.

S.17 Board accountability

The Board shall be accountable to the State Govt.

S.18 Duties and Functions of the Board

(1) The Board shall have the following duties and functions; namely,-

(a) finance, procure finance and provide credit facilities for construction, development, operation, maintenance, rehabilitation and up gradation of Bankable Projects in the State;
(b) administer and manage the Fund for the purpose of undertaking or assisting any financial commitments or Subsidy envisaged under any Concession Agreement or other arrangement and for the performance of its duties and functions including its own administrative expenditure;
(c) determine whether an Infrastructure Project is a Bankable Project and decide on the mode and manner of financing such Bankable Project in accordance with the provisions of this Act;
(d) perform such other functions as may be entrusted to it by the State Government;

(2) The duties and functions of the Board shall be exercised in an independent, transparent and efficient manner and shall disseminate all releva

S.19 Powers of the Board

(1) The Board shall have the following powers, namely:-

(a) to finance construction, development, operation, maintenance, rehabilitation and up gradation of Bankable Projects in the State in accordance with the provisions of this Act;
(b) to provide credit facilities for financing construction, development, operation, maintenance, rehabilitation and up gradation of Bankable Projects which are to be extended through the State Government, Government Agencies, Specified Government Agencies or through Public Private Participation;
(c) to borrow and raise money with or without security by issue of bonds, debentures, loans or such other instruments as it may deem fit and to receive money from Indian or foreign sources and deposit at interest or otherwise in such manner as the Board may think fit;
(d) to draw, issue, accept and to endorse, discount and negotiate promissory notes, hundies, and other negotiable or commercial or mercantile or transfera

S.20 Meghalaya Infrastructure Development Fund

(1) The State Government shall constitute a fund to be known as the Meghalaya Infrastructure Development Fund which shall vest in the Board.

(2) The Fund shall consist of:

(a) contribution from the State Government or the Central Government;
(b) amount charged by the Board under Section 25;
(c) amounts borrowed or mobilised by the Board from capital or debt markets by any instrument whatsoever from both domestic and international entities including financial institutions, banks, multilateral lending agencies and international and domestic grant providers, for Infrastructure Projects;
(d) all money received for Bankable Projects;
(e) any other income accruing to the Fund/Board, including by way of investments;
(f) money accruing to the Fund/Board through sale, lease or rent of any assets of the Board;

(3) In case amounts allocated for the Fund remain un-committed at the end of any Financial Year for any r

S.21 Identification

For the identification of Infrastructure Projects that may be funded or financed, the Board may consider suggestions from State Government, Government Agencies, Specified Government Agencies or persons engaged in the business of developing or implementing of Infrastructure Projects.

S.22 Detailed Project Report

(1) The Board may itself conduct or have conducted by one or more Committee, Consultants or any other person such preliminary investigations and feasibility study as are necessary to establish the viability of the Infrastructure Project and the Committee or the Consultants or any other person appointed by the Board for this purpose shall prepare and submit a Detailed Project Report to the Board in such form and containing such details as may be determined by the Board.

(2) The Board shall review each Detailed Project Report to determine whether it has been prepared according to the Board's requirements. If the Board finds deficiencies it may direct the Consultants to present a revised Detailed Project Report within a prescribed period.

S.23 Approved Detailed Project Report

(1) Detailed Project Report once approved by the Board shall be adopted and published by the Board as Approved Detailed Project Report. The Board shall provide a copy of the Approved Detailed Project Report to the concerned departments of the State Government and to the concerned Government Agency or the Specified Government Agency. The Board shall also publish the Approved Detailed Project Report on its website.

(2) The Board shall determine on the basis of the Approved Detailed Project Report whether an Infrastructure Project is a Bankable Project or not and shall also take into consideration any comments offered by the concerned departments of the State Government or the concerned Government Agency or the Specified Government Agency.

S.24 Implementation of Bankable Projects

(1) In deciding the mode and manner in which an identified Bankable Project is to be financed, the Board shall have regard to its own capabilities, offers available for collaboration by other Government Agencies and any Concession Agreement, or arrangement entered into by the State Government for this purpose with any person and form such special purpose vehicles, companies or entities on its own or as joint ventures as may be prescribed by the regulations.

(2) In inviting private sector participation, the Board shall follow a competitive bidding process which adheres to accepted norms of transparency and cost effectiveness and the Board shall frame the regulations to lay down the situations where competitive bidding method or other methods shall be followed. The Board may grant first right of refusal to the person developing the Bankable Project. However, such first right of refusal shall be granted only on the basis of an appropriate procedure, which adheres to accepted no

S.25 Fees

The Board may charge such fee, for carrying out any of its duties and functions, as prescribed by regulations or in terms of any agreement or arrangement entered into by it.

S.26 Accounts and Audits

(1) The accounts of the Board shall be prepared and maintained in such form and in such manner as may be provided by the rules.

(2) The Board shall cause to be prepared for each Financial Year an annual statement of accounts in such form as may be provide by the rules.

(3) The accounts of the Board shall be audited by an auditor duly qualified to act as an auditor of Companies under Section 226 of the Companies Act, 1956 (1 of 1956).

(4) The auditor shall include in their report assessments relating to the achievement of the purpose of the Fund, compliance with the policies and procedures established by the Board, and the effectiveness of the management of the Fund.

(5) The auditor shall send copy of the report together with audited copy of accounts to the Board which shall, as soon as may be, after the receipt of the audit report forward the same to the State Government.

(6) The State Government shall cause the audit report together with audited

S.27 Reports

(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 receipt of the report under sub-section (1).

S.28 Banking and Withdrawal

All sums received for the purposes of the Fund shall be paid into an account or accounts with such banks as are agreed with the State Government and no amount shall be withdrawn there from except under the authority of the Board and by means of:

(a) cheques signed by such persons as are authorized in that behalf by the Board; or
(b) transfer of money electronically certified by such persons authorised in that behalf by the Board.

S.29 Members, officers and servants to be public servants

All Members and employees and officers 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 of the Indian Penal Code 1960 and Section 2(c) of the Prevention of Corruption Act, 1988.

S.30 Protection of action taken in good faith

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 regulations made thereunder.

S.31 Powers to make Rules

(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 powers, such rules may provide for all or any of the following matters, namely,-

(a) the matters relating to competitive public bidding, inviting comparative bids and direct negotiation under this Act;
(b) the manner in which the developer for any Bankable Project shall be selected under this Act;
(c) the scheme for concession agreement;
(d) the other factors having regard to which charges may be revised and the manner in which they may be revised;
(e) the manner in which an opportunity of being heard shall be given to the developer;
(f) the form, and manner in which the accounts of the Board shall be prepared and maintained;
(g) the form in which an annual statement of accounts of the Board shall be prepared;

S.32 Power to make regulations

(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 powers, such regulations may provide for all or any of the following matters, namely,-

(a) the manner in which a proposal shall be submitted to the Board under the Act;
(b) the time and the place at which the Board shall meet and rules of procedure the Board shall observe in regard to transaction of its business at its meeting;
(c) the other Committees which the Board may constitute, the number of Members which the Executive Committee and other Committees may consist of and the functions of the Board which they may perform under this Act;
(d) the remuneration, allowances and conditions of service of Members, secretary, experts, professionals and officers and other employees of Board;
(e) any other matter

S.33 Power to remove difficulties

The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force in the State.

S.34 Act to have overriding effect

(1) If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as may appear to it to be necessary for removing the difficulty:

Provided that no such order shall be made after the expiry of period of two years from the date on which this Act come into force.

(2) Every order made under this Act shall be laid, as soon as after it is made, before the State Legislature.