# Bihar State Infrastructure Development Enabling Act, 2006, Section 12: Report to the Government - Act: Bihar State Infrastructure Development Enabling Act, 2006 (Act 2006 of 2024) - Source URL: https://indiacode.ecourtsindia.com/bihar-state-infrastructure-development-enabling-act-2006/section/12/ ## Text Consultants on Retainer ship The Authority may hire national or international Consultants/Consultancy firms on a retainer ship basis against an annual/work based fee for assisting itself on planning , design , implementation and such other issue as the Authority may deem fit. The Authority may require these Consultants/Consultancy firms to be stationed in house. * Bihar State Infrastructure Development Enabling Act. 2006 AN ACT TO PROVIDE FOR THE RAPID DEVELOPMENT OF PHYSICAL AND SOCIAL INFRASTRUCTURE IN THE STATE AND ATTRACT PRIVATE SECTOR PARTICIPATION IN THE DESIGNING, FINANCING, CONSTRUCTION, OPERATION AND MAINTENANCE OF INFRASTRUCTURE PROJECTS IN THE STATE AND PROVIDE A COMPREHENSIVE LEGISLATION FOR REDUCING ADMINISTRATIVE AND PROCEDURAL DELAYS, IDENTIFYING GENERIC PROJECT RISKS. CHAPTER - 1 PRELIMINARY 1 Short title, extent, application and commencement: - (1) This Act may be called the Bihar Infrastructure Development Enabling Act. 2006 (2) It extends to the whole of the State of Bihar. (3) (a) It shall be deemed to have come into force with immediate effect (b) It shall apply to all Infrastructure Project implemented through Public Private Partnership in the sectors as may be notified by the Government under the Act from time to time. The Act will not apply to any Infrastructure Project which is undertaken by any joint venture between the State or Central Government Departments or between State or Central Government and any Statutory Body of between any Statutory Bodies or between the State or Central Government or Statutory Body and any Government Company or any Infrastructure Project which may be taken over by any private party or private sector undertaking upon privatization or disinvestment by the State or Central Government or Government Agency or by any Statutory Corporation or any Government Company or any Infrastructure Project which does not involve fresh, new, additional investment being made by a private sector participant or any Infrastructure Project which is expressly notified to be excluded from the provisions of the Act by the Government. 2. Definitions: (a) "Act" means the Bihar Infrastructure Development Enabling Act, 2006; (b) "Infrastructure Project or Project" means a Project in the sectors as notified under the Act by the Government; (c) "Government" means the State Government of Bihar; (d) "Government Agency" means any department of the Government or any corporation or body owned or controlled by the Government by reason of the Government holding not less than fifty one percent of paid-up share capital in such corporation or body; (e) "Best Effort" means best efforts made in the circumstances; (f) "Bidder" means any entity including any Bidding Consortium, who has submitted a proposal to undertake an Infrastructure Project under Public private Partnership; (g) "Bidding Consortium" means if the proposal for the project is made jointly by more than one entity, then such group of entities shall be referred to as a Bidding Consortium; (h) "Categories of projects" means categories specified in Schedule Il of the Act and such other categories as may be notified by the Government from time to time; (i) "Infrastructure" means public works relating to infrastructure for utilizing the natural resources. (j) "Member" means a member of the Infrastructure Development Authority which includes the Chairperson, the Vice Chairperson, any other member of the Infrastructure Development Authority; (k) "Notification" means a notification published in the Bihar Gazette and the word "notified" shall be construed accordingly; (I) "Person" Shall include any company or association or body of individuals, whether incorporated or not; (m) "Charges for Abuse or Abuser Charges" means the levy of charges by the Infrastructure Development Authority on any Developer, if any Developer abuses any right accorded under the Concession Agreement, in the course of development, implementation, operation, maintenance, management and transfer of any infrastructure Project, to the extent as may be specified in the Concession Agreement or such other agreement as may be prescribed by the Government; (n) "Company" means any entity incorporated by memorandum of association under the Companies Act, 1956 or incorporated under any other statute or deemed to be incorporated under the laws of India or the laws of any other country of the World; (o) "Concession Agreement" means a contract of the nature specified in Schedule-I between the developer and the State Government or Government Agency or the Local Authority relating to any Infrastructure Project or such other contract as may be prescribed from time to time by the Government; (p) "Conciliation Board" means the Conciliation Board established under section 32 of the Act; (q) "Developer" means any private Sector Participant who has entered into a contract for the Infrastructure Project with the Government or Government Agency or Local Authority under the Act. (r) "Generic Risks" means circumstances that have the potential to adversely affect the development of a Project or interest of the participants to the Project or interest of the Government or Government Agency or Local Authority in the nature of construction period risk, operation period risk, market and revenue risk, finance risk, legal risk and miscellaneous risks as enumerated in Schedule IV of the ACT. (s) "Government Company" means any company in which not less than fifty-one per cent of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments and includes a company which is a subsidiary of a Government company as defined; (t) "Investment" means preliminary and pre-operative expenses, capital expenditure, lease on land and equipment, interest during construction, administrative expenses, all operating and maintenance expenses including expenses incurred on recovery of User Levies; (u) "Prioritized Project" means any Project, which is notified by the Infrastructure Development Authority as a prioritized project under the Act; (v) "Private Sector Participant" means any person other than Central Government or State Government or Government Agency or any joint venture between Central Government or State Government Departments or any Statutory Body or Authority or Local Authority or any Corporation or Company in which Central Government or State Government or Government Agency, Statutory Body or Authority or Local Body is holding not less than fifty one percent paid-up share capital; (w) "Prescribed" means prescribed by rules or regulations made under this Act; (x) "Public Private Partnership" means investment by private Sector Participant in an Infrastructure Project of the Government Agency or the Local Authority in the State; (y) "Regulations" means regulations made under section 66 of the Act; (z) "Responsive Bid" means a bid from an eligible Bidder which complies with all the requirements prescribed by the tender documents or other documents as the case may be; (aa) "Rules" means rules made under section 67 of the Act; (bb)"Local Authority" means any municipal corporation or municipal council or any panchayat or any other statutory body formed, elected or appointed for local self-Government; (cc) "Construction" means any construction reconstruction, rehabilitation, improvement, expansion addition, alteration and related works and activities including supply of any equipment, materials, labour and service related to build or rehabilitate any infrastructure Project comprising of physical structures or systems or commodities or for utilization or resources or provision of services; saC (dd) 'Sectors' means sectors as notified under Schedule III of the Act and as may be notified from time to time by the Government; (ee) "Sector Regulator" means the regulatory authority for a Sector or Sectors as may be notified by the Government from time to time; (ff) "Sole Bid" means when in competitive bidding process there is only one Responsive Bid received by the Government Agency or the Local Authority; (gg) "State" means the State of Bihar; (hh) "State Support" means grant by the State of any administrative support, asset-based support, foregoing revenue benefits support, undertaking contingent liabilities by providing guarantees or financial support to the Developer as enumerated in Schedule V of the Act; (ii) "Swiss Challenge Approach" means when Private Sector Participant (Original Project proponent) submits an Unsolicited or suo-motu proposal and draft contract principles for undertaking a category II Project, not already initiated by the Government Agency or the Local Authority and the Government Agency or the Local Authority then invites competitive counter proposals in such manner as may be prescribed by the Government. The proposal and contract principles of the Original Project Proponent would be made available to any interested applicants; however, proprietary information contained in the original proposal shall remain confidential and will not be disclosed. The applicants then will have an opportunity to better the Original Project proponent's proposal. If the Government finds one of the competing counter proposals more attractive, then the original Project Proponent will be given the opportunity to match the competing counter proposal and win the Project. In case the original project Proponent is not able to match the more attractive and competing counter proposal, the Project is awarded to the Private Sector Participant, submitting the more attractive competing counter proposal; (jj) "Unsolicited or suo-motu Proposal" means a proposal in respect of a Project not already initiated by the Government or Government Agency or Local Authority and which proposal is submitted by any Private Sector Participant to the Government Agency or Local Authority in respect of any Infrastructure in the State supported by project specifications, technical, commercial and financial viability and prima facie evidence of the financial and technical ability of such Private Sector Participant to undertake such Project with full details of composition of the Private Sector Participant and his financial and business background; and (kk) "User Levies" means the right or authority granted to the Developer by the Government Agency or the Local Authority to recover investment and fair return on investment and includes toll, fee, charge or benefit by any name. (II) "Lead Consortium Member" means in case of a Bidding Consortium, that consortium member vested with the prime responsibility of developing a Project, holding not less than 26% equity stake in the Bidding Consortium and also holding the highest equity stake amongst all other consortium members. In the event of two or more consortium members holding the highest equal equity stake, the Bidding Consortium shall clearly indicate in the Bid which consortium member is to be considered the Lead consortium Member and the consortium member so indicated or named shall be the Lead Consortium Member; (mm) "Lender" means any financial institution or bank or any entity providing financial assistance with or without security or giving any advances to any Developer for completing or implementing any Project under the Act; (nn)"Linkage Infrastructure Project" means from any Project under the Act any road link to the nearest State Highway, National Highway or rail link or water transmission link to the nearest practical water source including an existing pipeline or canal or water body or sewerage link to the nearest practical sewerage transmission line or sewerage treatment facility or such other facility; (00)"Mega Infrastructure Project" means any Project implemented or undertaken through Public Private Partnership under the Act requiring an investment as may be prescribed by the Infrastructure Development Authority. (pp) "Local Laws" means laws other than central laws and applicable to the state; (qq) "Non Profit Organization" means any organization formed for promoting commerce, art, science, religion, charity or any other useful object and applies its income in promoting its objects and prohibits the payment of any dividend to its members and does not allow its corpus or income to be lent or advance or diverted or utilized or exploited by its members or office bearers or any other company in which they or any of them may be interested or connected; de (rr) "Polluter Charges" means levy of prescribed charges by the Infrastructure Development Authority on any Developer, if any Developer pollutes the environment or does not adhere to the specifications and measures for environment preservation and conservation agreed under the contract with the Government or the Government Agency or the Local Authority or fails to stop polluting the environment within 30 days of receipt of notice in writing from the Infrastructure Development Authority or the Government Agency or the Local Authority; CHAPTER - II ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES OF THE INFRASTRUCTURE DEVELOPMENT AUTHORITY. 3. Constitution of Infrastructure Development Authority :- (1) The Government may, with effect from the date of notification or from such date as may be specified there, constitute an authority. (2) Such an authority will be known as "The Infrastructure Development Authority" (3) The Authority constituted under sub-section (1) shall be a body corporate having perpetual succession and common seal, with power to acquire, hold and dispose of property both movable and immovable to do all things incidental to and necessary for the purposes of this Act and to contract and may by the said name sue and be sued. 4. Composition of the Authority :- (1) The Chief Secretary to the Government shall be the Chairperson of the authority, and the vice chairman would be the Development Commissioner. The Authority shall consist of a Chairperson and such other members not exceeding fifteen in the aggregate including Ex-officio members. (2) There will be a Managing Director of the Authority appointed by the Government. In addition, in the Authority as per the laid down procedure, the following officers shall be appointed. 1. Director Finance 2. Director Project Implementation 3. Director Administration (3) The Ex-officio members of the Authority shall be the following: 1. Industrial Development Commissioner, Department of Industries, Bihar, Patna 2. Secretary, Finance Department, Bihar, Patna 3. Two representatives from Industry sector 4. Secretary, Energy Department, Bihar, Patna 5. Secretary, Road Construction Department, Bihar, Patna 6. Secretary, Urban Development Department, Bihar, Patna 7. Three experts nominated by the Government. 5. Term of office of the Members :- Every member other than the Ex-officio member shall hold office during the pleasure of the Government. 6. Term and conditions of service :- The terms and conditions of service of the members of the Authority including the honoraria and the allowances to be paid to them shall be such as may be prescribed. 7. Meetings of the Authority :- The Authority shall meet at such times and places and observe such procedure in regard to transaction of business at meetings including the quorum as may be provided by the regulations. 8. Appointment of officers and staff of the Authority :- The Authority may appoint such officers and members of staff as it may require in carrying out its functions and discharging its duties under this Act in such manner as may be prescribed. 9. Constitution of committees :- (1) The Authority may, from time to time constitute such committee or committees consisting of such members for performing such of its functions as may be provided by the regulations. (2) The Authority shall invite such persons from the fields of banking, commerce, industry, environment, law, technology and the like or a person nominated by the Government from time to time, to assist the Authority in carrying out its functions under this Act . 10. Functions of the Infrastructure Development Authority :- The functions of the Infrastructure Development Authority shall be as follows :- (i) to conceptualize and identify projects and ensure their conformance to the objectives of the States; (ii) to receive and consider projects under the Act from the Government or Government Agency or Local Authority and process the same; (iii) to advise the Government or Government Agency or Local Authority, as the case may be, on the project and give recommendations or suggestions in that behalf; (iv) to co-ordinate between concerned department of the Government and Government Agency for the project; (v) to monitor the competitive bidding process for Category Il Projects and provide for course correction, if required; (vi) to provide enablers for projects; (vii) to prioritize and categorize projects and to prepare a project shelf; (viii) to prepare road map for project development; (ix) to identify inter - sectoral linkages; (x) to prepare guidelines for the implementation of the Act; (xi) to decide financial support and approve allocation of contingent liabilities for projects; (xii) to take necessary steps for implementation of the provision of the Act and to achieve the objective of the Act; (xiii) to approve the terms of reference for consultancy assignments in Category Il projects and the consultant selection process thereof; (xiv) to recommend and approve bid documents, risk sharing principles and bid processes for Category II project ; (xv) to approve the scale and scope of a Suo-motu proposal or project undertaken through Swiss-Challenge Approach and to recommend modifications of a non financial nature if required; (xvi) to resolve issues relating to project approval process; (xvii) to prescribe time limits for clearances necessary for any project; (xviii) to review periodically the status of clearances and ensure that clearances are accorded within specified time frames and grant clearances if not granted within time frames or if denied, as may be specified; (xix) to decide issues pertaining to user levies including but not limiting to prescribing mechanism and procedure for setting, revising, collecting and/or regulating user levies and to decide and settle disputes relating to user levies; (xx) to approve sectoral policies and model contract principles; (xxi) to issue and /or amend guidelines needed to effectively implement the Act; (xxii) to coordinate with sector regulator/s; (xxiii) to administer and manage the Fund and its assets; (xxiv) to coordinate execution of the projects with Government, Government Agency and Local Authority; (xxv) to supervise or otherwise ensure adequate supervision over the execution, management and operation of project; (xxvi) to build public opinion; (xxvii) to fix and provide for recovery of fees, levies, tolls and charges as may be specified from time to time; (xxviii) to levy and recover charges for abuse and polluter charges from the developer; (xxix) to prescribe regulations to regulate its own procedures; (xxx) to take all steps necessary for enforcing the provisions of the Act and realizing the objectives of the Act; (xxxi) land acquisition, land allotment and land-allotment cancellation related to industrial area development under this rule and provided in the act. or as per the government direction; (xxxii) to implement orders issued by state government from time to time for development of industrial area; (xxxiii) to take necessary actions regarding dispute related with the Authority; (xxxiv) to realise fee, cess or any other payment in any name regarding industrial area development and other developmental plan; (xxxv) to disburse works entrusted by government from time to time. 11. Powers of the Infrastructure Development Authority :- (i) Notwithstanding anything contrary in any other laws for the time being in force, the Infrastructure Development Authority shall have the power to grant any clearance or permission required for any project and such clearance or permission when granted shall be final, binding and conclusive on the concerned state level statutory bodies or administrative bodies or authorities, as the case may be. (ii) Notwithstanding anything contrary in any law for the time being in force, the Infrastructure Development Authority may give directions to any Government Agency or Local Authority or other Authority or Developer or Person with regard to implementation of any project under the Act or for carrying out its functions under this Act and such Government Agency or Local Authority or other Authority or Developer or Person shall be bound to comply with such directions. (iii) The Infrastructure Development Authority shall have power to call upon any Government Agency, Local Authority or any other Body or Authority or Developer or Person to furnish information, details, documents and particulars in connection with or in relation to any project, which such Government Agency, Local Authority or Body or Authority, Developer or Person shall furnish to the Infrastructure Development Authority without any delay or default. (iv) The Infrastructure Development Authority shall have power to inspect, visit, review and monitor any project and its implementation, execution, operation and management through its official or officials and the persons in charge of the project shall be bound to give full cooperation to the SOLOMON Infrastructure Development Authority. (v) The Infrastructure Development Authority shall have all powers to enable to carry out its functions under the Act. (vi) Under the clause of this act, Authority shall be responsible for the planned development of the industrial area and will prepare related master plan and provide incentive to industries in those area and its ancillary benefits. (vii) Authority shall have powers of land allotment for industrial area development or for any area development, removal of any type of encroachment on the lands, and to cancel the allotments. (viii) For the implementation of aforesaid points, Authority will have powers to formulate necessary rules, for this, under Bihar, Orissa Municipality Act, 1922, section 196-197, 198-199, 200-201 and 202 and the powers of the municipal commissioners as specified. (ix) All the due amounts under the provision of the Act will be realisable as dues of land revenues under Bihar Public Demand Recovery Act 1914. (x) Authority, shall have powers to formulate rules/bye-laws for the purposes of exercising it financial powers, establishment/ Administration, Industrial area Development or implementation of entrusted works related to development. --- Published by eCourtsIndia together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957.