Section 16 in Himachal Pradesh Infrastructure Develoment Act, 2001
16. Parameters for concession agreement or arrangement.
- The following parameters for a concession agreement or arrangement shall define the suitability of a project for inviting private sector participation, namely:-(a)the concession agreement or arrangement may provide for the transfer of a project taken up with private sector participation, to the Government or its agencies not later than a period of 99 years from the date of agreement or arrangement of implementation of a project ;(b)the concession agreement or arrangement may provide for financial participation by the Government or its agencies in any project up to a maximum of 20% of the project cost and the actual nature and quantum of this financial participation shall be based on the processes of due diligence and competitive bidding provided in the regulations framed by the Board for this purpose;(c)the concession agreement or arrangement may provide for such incentives to the project as are admissible under the concerned sectoral policy of the Government to promote private sector participation or investment ;(d)the concession agreement or arrangement may provide for guarantees by the State Government or Government agencies in respect of liability of any Government agency with regard to a project;(e)the concession agreement or arrangement may provide for the opening and operation of an escrow account with respect to any payments to be made to the project by the State Government or any Government agency or any other person or persons;(f)the concession agreement or arrangement may provide for appropriate modes and terms for transfer of Government land and acquisition of private land for the purposes of project implementation ;(g)the concession agreement or arrangement may provide for right to develop land for such purposes as are admissible under the relevant statute; and(h)the concession agreement or arrangement may provide for the levy of the charges for the facilities or services provided by the project.
