Act to override other State laws

Section 69 of Bihar State Infrastructure Development Enabling Act, 2006 deals with act to override other State laws. If any provision contained in any State Act is repugnant to any provision contained in the Act, the provision contained in the Act shall prevail and the provision contained in any such State Act shall to the extent of repugnancy be void.

If any provision contained in any State Act is repugnant to any provision contained in the Act, the provision contained in the Act shall prevail and the provision contained in any such State Act shall to the extent of repugnancy be void. C a IndiaCode e SCHEDULE-1 (See Section 2(o) The following Concession Agreement or arrangements with their variation and combinations may be arrived at by the Government Agency or the Local Authority for undertaking Infrastructure Projects. The arrangements enumerated hereinafter are indicative in nature and the Government Agency or the Local Authority shall be entitled to evolve and arrive at such Concession Agreement or arrangement incorporating any of the arrangements as may be found necessary or expedient for any specific Project.

(i) Build - and Transfer (BT) - A contractual arrangement whereby the Developer undertakes the financing and construction of a given infrastructure or development facility and after its completion hands it over to the Government, Government Agency or the Local Authority. The Government, Government Agency or the Local Authority would reimburse the total Project investment, on the basis of an agreed schedule. This arrangement may be employed in the construction of any infrastructure or development Projects, including critical facilities, which for security or strategic reasons, must be operated directly by the Government or Government Agency or the Local Authority.

(ii) Build-Lease- and-Transfer (BLT) - A contractual arrangement whereby a Developer undertakes to finance and construct infrastructure Project and upon its completion hands it over to the Government or Government Agency or the Local Authority concerned on a lease arrangement for fixed period, after which ownership of the facility is automatically transferred to the Government or Government Agency or the Local Authority concerned.

(iii) Build-Operate-and-Transfer(BOT)- A contractual arrangement whereby the Developer undertakes the construction , including financing of a given infrastructure facility, and the operation and maintenance thereof. The Developer operates the facility over a fixed term during which he is allowed to a charge facility users appropriate tolls, fees, rentals and charges not exceeding those proposed in the bid or as negotiated and incorporated in the contract to enable the recovery of investment in the Project. The Developer transfers the facility to the Government or Government Agency or the Local Authority concerned at the end of the fixed term that shall be specified in the Concession Agreement. This shall include a supply-and-operate situation which is a contractual arrangement whereby the supplier of equipment and machinery for a given infrastructure facility, if the interest of the Government, Government Agency or the Local Authority so requires, operates the facility providing in the process technology transfer and training to Government, Government Agency or the Local Authority nominated individuals.

(iv) Build-Own-and-Operate (BOO) - A contractual arrangement whereby a Developer is authorized to finance, construct, own, operate and maintain an infrastructure or Development facility from which the Development is allowed to recover his total investment by collecting user levies from facility users. Under this Project, the Developer owns the assets of the facility and may choose to assign its operation and maintenance to a facility operator. The transfer of the facility to the Government, Government Agency or Local Authority is not envisaged in this structure, however the Government, Government Agency or Local Authority may terminate its obligations after specified time period.

(v) Build- Own- Operate- Transfer (BOOT)- A contractual arrangement whereby a Developer is authorized to finance, construct, maintain and operate a project and whereby such Projects is to vest in the Developer for a specified period. During the operation period, the Developer will be permitted to charge user levies specified in the Concession Agreement, to recover the investment made in the Project. The Developer is liable to transfer the project to the Government, Government Agency, or the Local Authority after the expiry of the specified period of operation.

(vi) Build-Transfer-and-operate(BTO)-A contractual arrangement whereby the Government or Government Agency or the Local Authority contract out an infrastructure facility to a Developer to construct the facility on a turn-key basis, assuming cost overruns, delays and specified performance risks. Once the facility is commissioned satisfactorily, the Developer is given the right to operate the facility and collect user levies under a Concession Agreement. The title of the facilities always vest with the Government, Government Agency or the Local Authority in this arrangement.

(vii) Contract-Add-and-Operate(CAO)-A contractual arrangement whereby the Developer adds to an existing infrastructure facility which it rents from the Government, Government Agency or the Local Authority and operates the expanded Project and collects user levies, to recover the investment over an agreed franchise period. There may or may not be a transfer arrangement with regard to the added facility provided by the Developer.

(viii) Develop-Operate-and-Transfer-(DOT)- A contractual arrangement whereby favourable conditions external to a new Infrastructure Project which is to be built by a Developer are integrated in the BOT arrangement by giving that entity the right to develop adjoining, property and thus, enjoy some of the benefits the investment creates such as higher property or rent values.

(ix) Rehabilitate-Operate-and-Transfer-(ROT)- A contractual arrangement whereby an existing facility is handed over the private sector to refurbish, operate (collect user levies in operation period to recover the investment) and maintain for a franchise period, at the expiry of which the facility is turned over the Government or Government Agency or the Local Authority. The term is also used to describe the purchase of an existing facility from abroad, importing, refurbishing, erecting and consuming it within the host country.

(x) Rehabilitate-Own-and-Operate-(ROO)- A contractual arrangement whereby an existing facility is handed over to the operator to refurbish and operate with no time limitation imposed on ownership. As long as the operator is not in violation of its franchise, it can continue to operate the facility and collect user levies in perpetuity. SCHEDULE-II [See Section 2(h)] CATEGORIES OF PROJECTS All Infrastructure Projects may be categorized based on the extent of Government support required and the exclusivity of the rights granted. The Government Agency or the Local Authority with the approval of the Infrastructure Development Authority will be entitled to evolve any further category or categories of the Project having combination of categories as per the priority and other requirements of the Government Agency or the Local Authority. The Government Agency or the Local Authority with the approval of the Infrastructure Development Authority may divide the Project into following categories: 1. CATEGORY - I PROJECTS: shall be Projects where,- (i) no fiscal incentives in the form of contingent liabilities or financial incentives are required;

(ii) the Project is viable even when land is granted at the market rates; camera andis Sentin (iii) no exclusive rights are conferred on the Developer;

(iv) minimal inter-linkages are required. 2. CATEGORY - II PROJECTS: shall be Projects where,- (i) Government or Government Agency will be required to provide assets support;

(ii) financial incentives in the form of contingent liabilities or direct financial support are required to be provided;

(iii) exclusive right are conferred on the Developer;

(iv) extensive linkages i.e. support facilities for the project such as water connection etc. are needed. SCHEDULE-III [See Section 2 (dd)] SECTORS 1. Roads (State Highways, Major District Roads, Other District Roads & Village Roads), Bridges and Bypasses 2. Health 3. Land reclamation 4. Canals, Dams 5. Water Supply, treatment and distribution 6. Waste management 7. Sewerage, drainage 8. Public Markets diaCode 9. Trade Fair, Convention, Exhibition and Cultural Centers 10. Public buildings 11. Inland water transport 12. Gas and Gas Works 13. Sports and recreation Infrastructure, Public gardens and parks 14. Real Estate 15. Any other Projects or sectors may be notified by the Government. SCHEDULE-IV [See Section 2 (r)] GENERIC RISKS The Government Agency or the Local Authority will endeavor to disclose, allocate and provide for the treatment of the following risks in the Concession Agreement as may be applicable to a Project. I. Construction Period Risks:

(i) Land Expropriation (ii) Cost Overruns (iii) Increase in Financing Cost (iv) Time & Quality Risk (v) Contractor Default (vi) Default by the Developer (vii) Time, Cost & Scope of identified but related Work, and variations.

(vii) Environmental Damage-Subsisting\On going. Operation Period Risks:

(i) Government Agency Default.

(ii) Developer Default. Agreement by Infrastructure (iii) Termination of Concession Development Authority or Government or Government Agency.

(iv) Environmental Damage - Ongoing (v) Labour Risk.

(vi) Technology Risk. III Market & Revenue Risks:

(i) Insufficient Income from User Levies (ii) Insufficient Demand for Facility. IV Finance Risks:

(i) Inflation (ii) Interest Rate (iii) Currency Risk V Legal Risk:

(i) Changes in Law (ii) Title/Lease rights (iii) Security Structure (iv) Insolvency of Developer (v) Breach of Financing Documents diaCoin VI Miscellaneous Risks:

(i) Direct Political Force Majeure (ii) In-direct Political Force Majeure (iii) Natural Force Majeure (iv) Sequestration (v) Exclusivity (vi) Development Approvals (vii) Adverse Government Action/In Action (viii) Provision of Utilities (ix) Increase in Taxes (x) Termination of Concession by the Government (xi) Payment Failure by the Government IndiaCode SCHEDULE-V [See Section 2 (hh)] STATE SUPPORT The Government will consider the grant of following forms of State Support, ranked in its order of preferences i.e.

(i) Administrative Support (ii) Asset Support (iii) Foregoing Revenue Streams (iv) Guarantees for contingent liabilities; and (v) Financial Support (i) Administrative Support The State Government will offer the following administrative support to all the Project covered under the Act, namely :- (a) Provide State level statutory clearances within specified time limits after the Project is sanctioned in favour of the Developer.

(b) Automatically grant non-statutory State level clearances, if a Project meets specifications as may be prescribed.

(c) Provide Best Effort support for obtaining all central level clearances.

(d) Undertake all rehabilitation & resettlement activities and recover the cost from Developer.

(e) Provide construction power and water at Project site.

(f) Acquire land necessary for the Project, if the same does not already belong to the Government.

(ii) Asset Based Support: The State Government will offer asset based support to all Category II Project covered under the Act. The Category I Projects will receive asset based support only if the sector policy specifically provides for the same. The asset based support comprises:

(a) Government owned land would be provided at concessional lease charges for Projects where ownership would revert to the Government, within a maximum period of 33 years from the date of grant of land;

(b) The State Government will commit/facilitate development of linkage Infrastructure for Projects. utory veces ne (iii) Foregoing Revenue Streams: The Government will forego revenue streams in case of all Category II Projects. Government will forego revenue streams in case of Category | Projects only if the sector policy specifically provides for the same. Such support would be in the form of .- (a) exemption of sales tax on all inputs required for Project construction.

(b) exemption of stamp duty and registration fees on the first transfer of land, from the Government to the Developer and on Project agreements registered in the State.

(c) Exemption from payment of seginiorage fees i.e. cess on minor minerals during construction period.

(iv) Guarantees:

(a) The Government may guarantee receivables only in the case of Category II Projects, provided they are not collected directly from users.

(b) The Government may also provide off take guarantees if it is the service distributor and is responsible for collection of user levies. (V) Financial Support:

(a) Direct financial support may be considered only in the case of Category II Projects.

(b) The Government will have the final authority to approve direct financial support.

(c) Infrastructure Development Authority will ensure that appropriate Project structuring will eliminate, to the extent possible, the need for financial support.

(d) Extent of financial support will be used as one of the selection criteria whenever financial support is to be provided.

Section 69, Bihar State Infrastructure Development Enabling Act, 2006 (Act 2006 of 2024).