(1) This Act may be called the West Bengal Ceiling on Government Guarantees Act, 2001.
(2) It shall come into '-force on such date as the State Government may, by notification, appoint.
2. In this Act, unless the context otherwise requires,—
(a) "Government" means the Government of West Bengal;
(b) "Government Guarantee" includes the guarantee given by the State Government on behalf of the Government departments, public sector undertakings, local authorities, statutory boards, corporations and co-operative institutions;
(c) "notification" means a notification published in the Official Gazette;
'For proceedings of the West Bengal Legislative Assembly, see the proceedings of the meeting of that Assembly held on the 30th July, 2001.
-This Act came into force w.e.f. 1.8.2001 vide the Finance (Taxation) Department ' Notification No. 2605-F.T., dt. 1.8.2001, published in the Kolkata Gazette. Extraordinary.
Part I, dt. 1.8.2001.
195 The West Bengal Ceiling on Government Guarantees Act, 2001.
[West Ben. Act (Sections 3-6.)
(d) "Performance Guarantee" includes the documents such as letters of comfort, paper purchase agreement, state support agreement, concession agreement for infrastructure project and other agreements, guaranteed in certain performance on behalf of Government departments, public sector undertakings, local authorities, statutory boards, corporations and co-operative institutions.
Ceiling on Government Guarantees.
Prohibition.
Guarantee commission.
Performance Guarantee.
3. The total outstanding Government Guarantees as on the first day of April of any year shall not exceed ninety per cent of the State revenue receipts of the second preceding year of such year as they stood in the books of the Accountant General of West Bengal:
Provided that the ceiling on the Government Guarantee shall not apply for any loan raised by the West Bengal Infrastructure Development Finance Corporation Limited under the guarantee given by the Government and fully availed of by the Government itself for funding different infrastructure projects and for repayment of which there is specific provision in the budget of the State.
4. Notwithstanding anything contained in any other law for the time being in force,—
(a) no Government Guarantee shall be given in respect of a loan of any private individual, institution or company;
(b) no Government Guarantee shall be extended to the cooperative institutions unless the share capital contribution from the non-Government sources is not less than ten per cent of the total equity proposed.