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Section 2: Definitions

The Andhra Pradesh Infrastructure Development Enabling Act, 2001.State Act of Andhra Pradesh · Act 36 of 2001

In this Act unless the context otherwise requires;-

(a) “Act” means the Andhra Pradesh Infrastructure Development Enabling Act, 2001;

(b) “Best Effort” means best efforts made in the circumstances;

(c) “Bidder” means any entity including any Bidding Consortium, who has submitted a proposal to undertake an infrastructure project under Public Private Partnership;

(d) “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;

(e) “Categories of Projects” means categories specified in schedule –II of the Act and such other categories as may be notified by the Government from time to time;

(f) “Charges for Abuse or Abuser Charges” means the levy of charges by the Infrastructure 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;

(g) “Company” means any entity incorporated by memorandum of association under the Companies Act, 1956 (Central Act 1 of 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;

(h) “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 Government;

(i) “Conciliation Board” means the Conciliation Board established under section 32 of the Act;

1[Provided that unless the parties otherwise agreed the provisions of chapters V and VI of the Act shall not apply to any of the projects under taken as per provisions of the Act];

(j) “Construction” means any construction, reconstruction, rehabilitation, improvement, expansion, addition, alteration and related works and activities including supply of any equipment, materials, labour and services related to build or rehabilitate any Infrastructure Project comprising of physical structures or systems or commodities or for utilization of resources or provision of services;

(k) “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;

(l) “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 and 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;

(m) “Government” means the State Government of Andhra Pradesh;

1. Proviso added by Act 3 of 2017, S.2.

(n) “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;

(o) “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;

(p) “Fund” means the Infrastructure Projects Fund established under section 54 of the Act;

(q) “Infrastructure Authority” means the Authority constituted under section 3 of the Act;

(r) “Infrastructure” means public works relating to infrastructure for utilising the natural resources and providing services by either public works of physical structure or systems for facilities or commodities or utilisation of resources or provision of services;

(s) “Infrastructure Project or Project” means a project in the sectors as notified under the Act by the Government;

1[(sa) “Implementing Agency” means any department of Government, any Government Corporation or Public Sector undertaking and Government Agencies etc., which shall implement their projects independently by following the procedure i.e., Business Rules of their department, and other rules being followed by respective Government Departments, Government Agencies, Public Sector undertaking respectively. The Infrastructure Authority may be chosen to be Implementing Agency and frame its own procedure for such projects;]

(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) “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 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;

(v) “Lender” means a 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;

1. Ins. new clause by Act 3 of 2017, S.2.

(w) “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;

(x) “Mega Infrastructure Project” means any Project implemented or undertaken through Public Private Partnership under the Act requiring an investment may be prescribed by the Infrastructure Authority;

(y) “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;

(z) “Local Laws” means laws other than Central laws and applicable to the State;

(aa) “Member” means a member of the Infrastructure Authority which includes the Chairperson, the Vice- Chairperson and any other member of the Infrastructure Authority;

(bb) “Non Profit Organisation” 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 utilised or exploited by its members or office bearers or any other company in which they or any of them may be interested or connected;

(cc) “Notification” means a notification published in the Andhra Pradesh Gazette and the word “notified” shall be construed accordingly;

(dd) “Person” shall include any company or association or body of individuals whether incorporated or not;

(ee) “Polluter Charges” means levy of prescribed charges by the Infrastructure Authority on any Developer, if any Developer polluters 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 with in thirty days of receipt of notice in writing from the Infrastructure Authority or the Government Agency or the Local Authority;

(ff) 1[* * * * * *]

(gg) “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 department or any Statutory Body or Authority or Local Authority or any Corporation or Company in which Central Government or State Government or Government Agency,

1. The clause (ff) omitted by Act 3 of 2017, S.2.

Statutory Body or Authority or Local Body is holding not less than fifty one percent paid-up share capital;

(hh) “Prescribed” means prescribed by rules or regulations made under this Act;

1[(hhh) ‘Project’ means a project deemed to have been initiated by the Government or the Government agency or the Local Authority, if

(a) total budgetary allocation for development of such project has been made by the Government or the Government Agency or the Local Authority and

(b) public announcements calling for bids for development of the project have been issued by the Government or Government Agency or the Local Authority;]

(ii) “Prospective Lenders” means financial institutions, banks or any other entities of such project financing track record as may be prescribed, who in principle or agreeable to provide guarantees or finance to the Bidder under any of the financing documents;

(jj) “Public Private Partnership” means investment by the Private Sector Participant in an Infrastructure Project of the Government Agency or the Local Authority in the State;

(kk) “Regulations” means regulations made under section 78 of the Act;

(ll) “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;

(mm) “Rules” means rules made under section 79 of Act;

(nn) “Sectors” means sectors as notified under Schedule- III of the Act and as may be notified from time to time by the Government.

(oo) “Sector Regulator” means the regulatory authority for a Sector or Sectors as may be notified by the Government from time to time;

(pp) “Sole Bid” means when in competitive bidding process there is only one Responsive Bid received by the Government Agency or the Local Authority;

(qq) “State” means the State Government of Andhra Pradesh;

(rr) “State Support” means a 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;

(ss) “Swiss Challenge Approach” means when a Private Sector Participant (Original Project Proponent) submits an unsolicited or suo-mottu proposals and draft contract principles for undertaking a category II Project, not already initiated by the Government

1. The clause (hhh) inserted by Act 1 of 2016, S.2.

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 proposals, the project is awarded to the Private Sector Participant, submitting the more attractive competing counter proposal;

1[Provided that the interested applicants shall mean only qualified bidders.

Provided further that the proprietary information means and includes the business plan of the proponent viz., Technical data, the commercial information and plans or design etc., prepared by proponent but not the revenue share offered by proponent.]

(tt) “Unsolicited or suo-mottu Proposal” means a proposal in respect of a Project not already initiated by the 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

(uu) “User levis” 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;

CHAPTER - II ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES OF THE INFRASTRUCTURE AUTHORITY

3. Constitution of Infrastructure Authority - (1) The Government may, by notification and with effect on and from such date as may be specified therein constitute an authority to be called, “the Infrastructure Authority”.

(2) The Authority constituted under sub-section(1) shall be a body corporate having perpetual succession and a 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.

(3) The headquarters of the authority shall be at Hyderabad or at such other place as may be notified.

1.The provisos added by Act 3 of 2017, Sec.2.

4. Composition of the Authority - (1) The Authority shall consist of a Chairperson, 1[Vice Chairperson] and such other members not exceeding fifteen in the aggregate including Ex-officio members.

2“(2) [The Chief Secretary to the Government or any other person with equivalent experience shall be the Chairperson of the authority”].

3[“(2A) The Principal Secretary to Government, Infrastructure and Investment Department shall be the Vice Chairperson of the Authority”]

(3) The Ex-officio members of the Authority shall be the following:-

(i) Secretary to the Government, Finance and Planning (Finance Wing) Department;

(ii) Secretary to the Government, Transport, Roads and Buildings Department;

(iii) Secretary to the Government, Municipal Administration and Urban Development Department;

(iv) Secretary to the Government, Information Technology Department;

(v) 4[Managing Director, Infrastructure Corporation of Andhra Pradesh];

(vi) 5[XXXX]

(4) The Members other than those specified in sub-section (3) shall be appointed by the Government in the manner prescribed.

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. Terms and conditions of service - The terms and conditions of service of the members of the Authority including the honororia and the allowances to be paid to them shall be such as may be prescribed.

7. 6[* * * * *]

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) 7[* * * * *]

(2) The Authority shall invite such persons from the fields of banking, commerce, industry, environment, law, technology and the like as may be nominated by the Government from time to time to assist the Authority in carrying out its functions under this Act on such terms and conditions as may be prescribed.

1 . The words ‘Vice Chairperson’ inserted by Act 9 of 2006, Sec.2.

2 . The sub-section (2) Subs. by Act 18 of 2002, Sec.2.

3 . The sub-section (2A) inserted by Act 9 of 2006, Sec.2.

4 . The proviso (V) Subs. by Act 9 of 2006, Sec.2.

5 . The clause(Vi) omitted by Act 9 of 2006, Sec.2.

6 . The Sec.7 omitted by Act 3 of 2017, Sec.3.

7 . In Sec.9 sub-section (1) omitted by Act 3 of 2017, Sec.4.

Where this provision sits

ActThe Andhra Pradesh Infrastructure Development Enabling Act, 2001.
Section2
Marginal noteDefinitions
JurisdictionState of Andhra Pradesh
StatusIn force as published by the source

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