The Himachal Pradesh Infrastructure Development Act, 2001

THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT 

ACT, 2001  

ARRANGEMENT OF SECTIONS 

Sections: 

CHAPTER-I 

PRELIMINARY 

1.  Short title, extent, scope and commencement.  

2. Definitions. 

CHAPTER-II 

ESTABLISHMENT AND CONSTITUTION OF THE 

BOARD 

3. Establishment and incorporation of the Board. 

4. Headquarter of the Board. 

5. Constitution of Board. 

6. Term of office of members. 

7. Filling up of casual vacancies. 

8. Meetings of Board. 

9. Temporary association of persons with Board. 

10. Constitution of Committees. 

11. Powers of Chairperson, Chief Executive Officer and 

Committees. 

12. Appointment of officers and other employees of the Board. 

13. Acts and proceedings of Board presumed to be valid. 

CHAPTER-III  

FUNCTIONS OF BOARD 

14. Functions of Board. 

CHAPTER-IV 

PROCEDURE FOR PERFORMANCE OF FUNCTIONS 

OF THE BOARD. 

15. Procedure for identifying Projects. 

16. Parameters for concession agreement or arrangement. 

17. Procedure for implementing project development. 

18. Coverage of risks in concession agreement or arrangement. 

19. Board to form entities for project implementation. 



2  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 

20. Procedure for inviting private sector participation in 

development projects. 

21. Fee. 

22. Procedure to raise resources. 

CHAPTER-V 

FINANCE, ACCOUNTS, AUDIT AND ANNUAL REPORT 

23. Fund of Board. 

24. Additional Capital and Grants to the Board by the Government. 

25. Borrowing Power of the Board. 

26. Accounts and Audit. 

27. Annual Report. 

CHAPTER-VI 

MISCELLANEOUS 

28. Winding up of the Government Owned Companies and transfer 

of assets and liabilities to the Board. 

29. Members, officers and servants to be public servants. 

30. Protection of action taken in good faith. 

31. Arbitration. 

32. Power to make regulations. 

SCHEDULE-I  

SCHEDULE-II 

THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT 

ACT, 2001  

(ACT NO. 1 OF 2002)
1
 

(Received the assent of the Governor on the 23
rd

 January, 2002 and 

published both in Hindi and English in the Rajpatra, Himachal Pradesh 

(Extra-ordinary), dated 24
th
 January, 2002, pp. 3895-3924.) 

An Act to provide for a framework for participation by persons other 

than the State Government and Government agencies in 

financing, construction, maintenance and operation of 

infrastructure projects and to raise resources on behalf of the 

State Government for infrastructure development and for that 

purpose to establish a Board and to provide for the matters 
relating thereto.  

                                                 
1. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of 

Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 

21
st
 December, 2001, pp. 3671 and 3687. 



THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 3 

BE it enacted by the Legislative Assembly of the State of Himachal 

Pradesh in the Fifty-second Year of the Republic of India, as follows:-  

CHAPTER-I 

PRELIMINARY  

1. Short title, extent, scope and commencement.- (1) This Act may 

be called the Himachal Pradesh Infrastructure Development Act, 2001.  

(2) It extends to the whole of the State of Himachal Pradesh.  

(3) It shall apply to such infrastructure projects as are implemented by 

a Government agency through private sector participation under the 

provisions of this Act and fall in the category of infrastructure projects 

specified in Schedule-I and such other infrastructure projects as are notified 

by the State Government, by notification, from time to time.  

(4) It shall come into force on such date
1
 as the State Government 

may, by notification, in the Official Gazette, appoint.  

2. Definitions.- In this Act, unless the context otherwise requires,-  

(a) "Act" means the Himachal Pradesh Infrastructure 

Development Act, 2001;  

(b) "Board" means the Himachal Pradesh Infrastructure 

Development Board established under section 3 of this Act; 

(c) "Capital" means the Capital for the time being raised or 

authorised to be raised for the purposes of the Board;  

(d) "concession agreement or arrangement" means a contract of 

the nature specified in Schedule-II between a developer and 

the Government or a Government agency relating to a 

project;  

(e) "developer" means a person with whom a concession 

agreement or arrangement is entered into by the 

Government or a Government agency;   

(f) "escrow account" means a bank account in which cash is 

deposited or from which cash is withdrawn in such manner 

as specified in the concession agreement or arrangement; 

(g) "Financial year" means the period in respect of which any 

annual accounts of the Board is laid before it, whether that 

period is a year or not;  

(h) "Government or State Government" means Government of 

Himachal Pradesh;  

                                                 
1. Act came into force from 28

th
 day of January, 2002 vide Notification No. Fin. IF-

(C) 45-1/99, dated 28
th

 January, 2002, published in the Rajpatra, Himachal 

Pradesh (Extra-ordinary), dated 28
th

 January, 2002, pp. 3935-3936. 



4  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 

(i) "Government agency" means a Government Department or 

a Corporation or a body owned or controlled by the 

Government or an authority established by or under any law 

and includes a local authority; 

(j) “infrastructure project” means facilities and services 

provided by a project, specified in Schedule-I; 

(k) "investment" means preliminary and preoperative expenses, 

capital expenditure, lease on land and equipment, interest 

during construction, administrative expenses, expenditure 

on acquisition of an existing infrastructure project owned 

by the State Government or a Government agency, all 

operating and maintenance expenses including expenses 

incurred on recovery of user levies; 

(l) "local authority" means a Municipal Corporation, 

Municipal Council, Nagar Panchayat, Zila Parishad, 

Panchayat Samiti and Gram Panchayat;  

(m) "member" means a member of the Board including 

Chairman and Chief Executive Officer;  

(n) "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 51% paid 

up share capital; 

(o) "private sector participation" means investment by a private 

sector participant in an infrastructure project of the 

Government agency or the local authority in the State;  

(p) "project" means project specified in Schedule-I;  

(q) "regulations" means regulations made by the Board under 

this Act; 

(r) "Schedule" means Schedule appended to this Act; 

(s) "Scheduled Bank" shall have the same meaning as assigned 

to it in clause (e) of section 2 of the Reserve Bank of India 

Act, 1934 (2 of 1934);  

(t) "seal" means the common seal of the Board; 

(u) "special purpose vehicle" means an independent entity set 

up with the limited special purpose;  

(v) "State Government guarantee" means a guarantee given by 

the State Government to any agency;  



THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 5 

(w) "user charges" means the amount charged for the use of 

facilities and services provided by the developer; and  

(x) "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 

shall include toll, fee, charge or benefit by any name.  

CHAPTER-II  

ESTABLISHMENT AND CONSTITUTION OF THE BOARD  

3. Establishment and incorporation of the Board.- (1) As soon as 

may be after the commencement of this Act, the Government may, by 

notification in the Official Gazette, establish a Board to be called the 

Himachal Pradesh Infrastructure Development Board with effect from such 

date as may be specified in the notification.  

(2) The Board shall be body corporate by name aforesaid having a 

perpetual succession and a common seal with power, subject to the 

provisions of this Act, to acquire, hold and dispose off property both 

movable and immovable and to contract and shall by the said name sue and 

be sued.  

4. Headquarter of the Board.- The Headquarter of the Board shall 

be at Shimla.  

5. Constitution of Board.- The Board shall consist of,-  

(a) the Chief Secretary to the Government who shall be the 

Chairperson ; 

(b) the Finance Secretary or any State Government officer of 

other equivalent rank shall be the Chief Executive Officer, to 

be appointed by the State Government, by notification; 

(c) not exceeding ten other members, which shall include 

Secretaries to the Government in the Departments of Power, 

Public Works, Irrigation and Public Health, Urban 

Development, Town and Country Planning, Tourism, 

Industry, Finance and Planning, to be appointed by the 

Government, by notification.  

6. Term of office of members.- Every member shall hold office 

during the pleasure of the State Government.  

7. Filling up of casual vacancies.- If any vacancy arises in the Board 

or in any committee thereof by reason of death, resignation or otherwise, the 

same shall be filled up by the Government as soon as possible.  

8. Meetings of Board.- (1) The Board shall meet at such time and 

place and shall observe such rules of procedure in regard to transaction of its 

business at its meeting (including the quorum at such meeting) as may be 

provided by regulations. 



6  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 

(2) The Chairperson, or, if for any reason, he is unable to attend any 

meeting, any other member chosen by the members present at the meeting, 

shall preside over the meeting. 

(3) All questions which come up before any meeting of the Board 

shall be decided by a majority of the votes of the members present and voting, 

and, in the event of an equality of votes, the Chairperson, or in his absence, 

the person presiding, shall have and exercise a second or casting vote.  

9. Temporary association of persons with Board.- The Board may 

associate with itself any person whose assistance or advise is required in 

performing any of its functions under this Act.  

10. Constitution of Committees.- The Board may constitute an 

Executive Committee and such other committees consisting of such number 

of members for performing such of its functions, as may be provided by 

regulations.  

11. Powers of Chairperson, Chief Executive Officer and 
Committees.- The Chairperson, Chief Executive Officer and Committees of 

the Board shall exercise such powers as may be provided by regulations.  

12. Appointment of officers and other employees of the Board.- 

(1) The Board may appoint such officers and other employees, as it may 

consider necessary for the efficient discharge of its functions.  

(2) The mode of recruitment, salary and allowances and other 

conditions of service of officers and other employees of the Board shall be 

provided by regulations. 

13. Acts and proceedings of Board presumed to be valid. No act or 

proceeding of the Board or of any of its committees shall be invalid merely by 

reason of- 

(a) any vacancy therein or any defect in the constitution thereof, 

or  

(b) any irregularity in its procedure not affecting the merit of the 

case. 

CHAPTER-III  

FUNCTIONS OF BOARD  

14. Functions of Board.- The Board shall,-  

(a) enable the private sector participation in infrastructure 

projects specified in Schedule-I on any of the concession 

agreement or arrangement specified in Schedule-II; 

(b) identify suitable projects for private sector participation; 

(c) undertake the development of projects for private sector 

participation on its own or in association with agencies 

engaging in the business of project development or in 



THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 7 

pursuance of any agreement entered into for this purpose by 

the Government with any person ;  

(d) consider proposals to give exclusive rights to any person to 

develop projects ;  

(e) formulate the terms of any agreement or arrangement for 

project development and any concession agreement or 

arrangements required for the implementation of projects 

developed under clauses (c) and (d);  

(f) invite private sector participation in respect of projects 

developed as per clauses (c) and (d), as per the procedure laid 

down in this Act and make appropriate recommendations to 

the Government in the matter ;  

(g) administer and manage a fund for the purpose of undertaking 

or assisting in project development for meeting any financial 

commitments envisaged under any concession agreement or 

arrangement and for the performance of its other functions 

including its own administrative expenditure and to secure 

contributions to this fund in the form of share capital or grants 

or loans from Government and other sources including 

bilateral and multilateral donor agencies, financial institutions 

and commercial banks;  

(h) advise the Government or a Government Agency on all 

matters of policy relating to private sector participation in 

infrastructure projects and their mode of implementation 

including issues relating to privatisation or disinvestment of 

the existing infrastructure assets of the public sector ;  

(i) co-ordinate the implementation of and monitor the progress 

of infrastructure projects undertaken in the State of Himachal 

Pradesh under this Act;  

(j) act as a special purpose vehicle to raise resources to finance 

development expenditure under the State Plan on behalf of 

the State Government and also to discharge obligations on 

this account on behalf of the State Government from revenue 

and other receipts accruing to the State Government from 

such development expenditure; and 

(k) perform such other functions as may be entrusted to it by the 

State Government, by notification.  

CHAPTER-IV 

PROCEDURE FOR PERFORMANCE OF FUNCTIONS OF 

THE BOARD  

15. Procedure for identifying Projects.- (1) For the identification of 

projects for private sector participation in infrastructure development in 

pursuance of section 14, the Board may consider suggestions from 



8  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 

Government agencies or persons engaged in the business of developing or 

implementing infrastructure projects.  

(2) The Board may itself conduct or have conducted on its behalf such 

preliminary investigations as are necessary to establish the prima facie 

suitability of the project for private sector participation within the parameters 

for a concession agreement or arrangement given in section 16 in identifying 

the projects which can be developed for private sector participation.  

(3) The Government agencies may opt to undertake the development 

of such identified projects on their own or with the assistance of the Board.  

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  



THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 9 

(h) the concession agreement or arrangement may provide for the 

levy of the charges for the facilities or services provided by 

the project.  

17. Procedure for implementing project development.- (1) In 

deciding the manner in which an identified project is to be developed for 

private sector participation from amongst the options available under section 

14, the Board shall have regard to its own capabilities, offers available for 

collaboration by other agencies and any agreement or arrangement entered 

into by the Government for this purpose with any person and form such 

special purpose vehicles, companies or entities on its own or as joint ventures 

as may be prescribed by regulations. 

(2) In considering a proposal for project development by private 

sector participation under section 14, the Board shall ensure that any exclusive 

right for project development conferred on such persons is limited to a 

specified period.  

18. Coverage of risks in concession agreement or arrangement.- 

(1) The Board shall ensure that any concession agreement or arrangement 

formulated by the Board under section 14 is in consonance with the 

parameters given in section 16 and contains all necessary covenants to take 

care of the risks associated with the concerned project.  

(2) The concession agreement or arrangement shall strive for the 

optimum contractual structure with regard to the need to balance the risks of 

stakeholders, maximize efficiency and minimize costs as may be prescribed 

by regulations.  

19. Board to form entities for project implementation.- In order to 

ensure implementation of a project developed under this Act, the Board may 

form such special purpose vehicles, companies or entities on its own or as 

joint ventures as are deemed necessary for this purpose, keeping in view the 

need to comply with the conditions outlined in section 16 with regard to the 

involvement of Government or its agencies.  

20. Procedure for inviting private sector participation in 

developed projects.- (1) In inviting private sector participation and making 

recommendations to the Government under section 14, the Board shall follow 

a selection process, which adheres to accepted norms of transparency and cost 

effectiveness and the Board shall frame the regulations to lay down the 

situations where competitive bidding method or other methods shall be 

followed.  

(2) In making a recommendation with regard to a private sector 

participant with respect to a project developed under section 14, the Board 

may recommend grant of first right of refusal to the person developing the 

project, however, such first right of refusal shall be granted only on the basis 

of an appropriate procedure, which adheres to accepted norms of transparency 

and cost effectiveness.  



10  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 

21. Fee.- (1) The Board may charge such fee, for carrying out any of 

its functions, as prescribed by regulations or in terms of any agreement or 

arrangement entered into by it.  

(2) The Board may also permit any person developing a project under 

section 14 to receive a similar amount as fee, if the project developed by such 

a person is undertaken by any other person.  

22. Procedure to raise resources.- (1) For raising of resources for 

financing development expenditure under the State Plan in pursuance of 

section 14, the Board shall make procedure consistent with the need to ensure 

transparency and cost effectiveness.  

(2) The Board may take the assistance of recognised financial 

institutions and reputed arrangers in performing this function.  

CHAPTER-V  

FINANCE, ACCOUNTS, AUDIT AND ANNUAL REPORT  

23. Fund of Board.- (1) The Board shall have its own fund and all 

receipts and sums which may, from time to time, be received by the Board 

from the State Government or any other person or agency and the amount 

charged by the Board under section 21, shall be credited thereto and all 

payments of the Board shall be made therefrom. 

(2) The Board shall have the power, subject to the provisions of this 

Act, to spend such sums as it thinks fit to cover administrative expenses and 

for the performance of its functions and such sums shall be treated as 

expenditure payable out of the fund of the Board.  

(3) All money standing at the credit of the Board which cannot 

immediately be applied as provided in sub-section (2), shall be deposited in 

the Scheduled Bank or Banks or in the Public Account of the State 

Government or may be deployed in such other manner and subject to such 

conditions as are contained in regulations framed by the Board for this 

purpose.  

24. Additional Capital and Grants to the Board by the 

Government.- The Government may, after due appropriation made by 

Legislature by law in this behalf,- 

(a) provide any capital, over and above the capital arising out of 

the winding up of the Government Owned Companies, that 

may be required by the Board for the discharge of its 

functions under this Act or for any purpose connected 

therewith on such terms and conditions as the Government 

may determine; and  

(b)  pay to the Board, on such terms and conditions as the 

Government may determine, by way of loans or grants such 

sums of money as the Government may consider necessary 

for the efficient discharge by the Board of its functions under 

this Act.  



THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 11 

25. Borrowing Power of the Board.- (1) The Board may, with the 

consent of the Government or in accordance with the terms of any general or 

special authority given to it by the Government, borrow money from any 

source by the issue of bonds, debentures, loans or such other instruments as it 

may deem fit for discharging all or any of its functions under this Act.  

(2) The Government may guarantee in such manner as it thinks fit for 

the repayment of the principal and the payment of interest thereon with 

respect to the loans borrowed by the Board under sub-section (1). 

(3) Subject to such limits as the Government may, from time to time, 

lay down, the Board may borrow temporarily by way of overdraft or 

otherwise such amounts as it may require for discharging its functions under 

this Act.  

26. Accounts and Audit.- (1) The accounts of the Board shall be 

prepared and maintained in such form and in such manner as may be provided 

by regulations. 

(2) The Board shall cause to be prepared for each Financial year an 

annual statement of accounts in such form as may be provided by regulations. 

(3) The accounts of the Board shall be audited by an auditor duly 

qualified to act as an auditor of Companies under section 226 of the 

Companies Act, 1956 (1 of 1956). 

(4) The auditor shall send copy of the report together with audited 

copy of accounts to the Board which shall, as soon as may be, after the receipt 

of the audit report forward the same to the State Government. 

(5) The State government shall cause the audit report together with 

audited copy of accounts to be laid before the State Legislature, as soon as 

may be, after the receipt of the same under sub section (4). 

27. Annual Report.- (1) The Board shall during each Financial year 

prepare in such form and at such time as may be provided by regulations, an 

annual report giving a true and full account of its activities during the previous 

Financial year and an account of the activities likely to be undertaken by it in 

current Financial year and copies of such report shall be forwarded to the 

State Government. 

(2) The State Government shall cause every such report to be laid 

before the State Legislature, as soon as may be, after the receipt of the report 

under sub-section (1).  

CHAPTER-VI  

MISCELLANEOUS  

28. Winding up of the Government Owned Companies and 
transfer of assets and liabilities to the Board.- (1) The Government Owned 

Companies shall be wound up in accordance with the provisions of the 

Companies Act, 1956 (1 of 1956). 



12  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 

(2) Subject to the provisions of Companies Act, 1956 (1 of 1956), 

from such date as the State Government may, by notification in the Official 

Gazette, appoint,-  

(i) all properties and other assets vested in the Government 

Owned Companies, immediately before such date, shall vest 

in the Board; 

(ii) all debts, obligations and liabilities incurred, all contracts 

entered into and all matters and things engaged to be done by, 

with, or for the Government Owned Companies, immediately 

before such date, shall be deemed to have been incurred, 

entered into and engaged to be done by, with or for the Board;  

(iii) all non-recurring expenditure incurred by Government Owned 

Companies up to such date and declared to be capital 

expenditure by the Government Owned Companies shall, 

subject to such terms and conditions as may be determined by 

the Government, be treated as the capital provided by the 

Government to the Board; 

(iv) all sums of money due to the Government Owned 

Companies, immediately before such date, shall be deemed to 

be due to the Board;  

(v) all suits and other legal proceedings instituted or which could 

have been instituted by or against the Government Owned 

Companies, immediately before such date, may be continued 

or instituted by or against the Board;  

(vi) all the employees holding any office under the Government 

Owned Companies, immediately before such date, shall be 

treated as employees of the Board and shall hold office in the 

Board on the same terms and conditions of service which 

were applicable to them.  

(3) If any dispute or doubt arises as to which of the properties, rights 

or liabilities of the Government Owned Companies transferred to the Board or 

as to which of the employees serving under the Government Owned 

Companies are to be treated as employees of the Board, under this section, 

such dispute or doubt shall be decided by the Government in consultation with 

the Board and the decision of the Government shall be final.  

Explanation.- For the purpose of this Act, the expression 

"Government Owned Companies" shall mean the Himachal Pradesh Road and 

Other Infrastructure Development Corporation Limited and Himachal Pradesh 

Health Systems Corporation Limited incorporated under the Companies Act, 

1956 (1 of 1956). 

29. Members, officers and servants to be public servants.- All 

members, officers and servants of the Board shall, while acting or purporting 

to act in pursuance of the provisions of this Act or any regulations made 



THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 13 

thereunder, be deemed to be public servant within the meaning of section 21 

of the Indian Penal Code, 1860 (45 of 1860).  

30. Protection of action taken in good faith.- No suit, prosecution or 

other legal proceeding shall lie against the Board or any member or officer or 

servant of the Board for anything which is in good faith done or intended to be 

done in pursuance of the provisions of this Act or regulations made 

thereunder.  

31. Arbitration.- All agreements or arrangements entered into by the 

Board shall contain an arbitration clause providing that,-  

(a) all parties to the agreement shall submit to arbitration any 

disputes which may arise between them out of the provisions 

of the agreement or arrangement ;  

(b) the place of arbitration shall be at Shimla or any other place in 

India agreed to by the parties ; and  

(c) the disputes referred to in clause (a) shall be decided in 

accordance with the law for the time being in force.  

32. Power to make regulations.- (1) The Board may make 

regulations not inconsistent with provisions of this Act for enabling it to 

discharge its functions under this Act.  

(2) In particular and without prejudice to the foregoing power, such 

regulations may provide for all or any of the following matters, namely:-  

(a) the time and the place at which the Board shall meet and rules 

of procedure, the Board shall observe in regard to transaction 

of its business at its meeting under section 8 ; 

(b) the committees which the Board may constitute, the number 

of members which the Executive Committee and other 

Committees may consist of and the functions of the Board 

which they may perform under section 10;  

(c) the powers of the Chairperson, Chief Executive Officer and 

Committees of the Board under section 11; 

(d) the mode of recruitment, salary and allowances and other 

conditions of service of officers and other employees of the 

Board under sub-section (2) of section 12 ;  

(e) the manner of disinvestment of assets of any Government 

agency under section 14;  

(f) to regulate competitive bidding under section 16;  

(g) to decide the manner in which an identified project is to be 

developed for private sector participation under section 17 ;  

(h) the procedure for dealing with risks associated with various 

infrastructure projects under section 18;  



14  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 

(i) the manner of competitive bidding or other methods to be 

followed under section 20;  

(j) fee to be charged under section 21;  

(k) the form and manner in which the accounts of the Board shall 

be prepared and maintained under sub-section (1) of section 

26;  

(l) the form in which an annual statement of accounts of the 

Board shall be prepared under sub-section (2) of section 26; 

and  

(m) the form in which and the time at which an annual report of 

the Board shall be prepared under sub-section (1) of section 

27.  

__________ 

SCHEDULE-I  

[See section 1 (3)]  

INFRASTRUCTURE PROJECTS 

1. State Highways including Roads, Bridges, Bye passes and 

related Road Infrastructure. 

2. Inland Waterways.  

3. Power including Power Generation, Transmission and 

Distribution System project. 

4. Water projects including dams, water storage, water supply and 

sewerage system projects.  

5. Gas pipelines or related facilities.  

6. Urban Infrastructure including shopping and commercial 

complexes, parking lots, solid waste management and 

transportation facilities etc.  

7. Tourism project including resorts, adventure and winter sports 

facilities, cable cares and ski lifts and entertainment complexes 

etc.  

8. Industrial estates, industrial areas, parks including development 

of parks offering facilities to projects like information 

technology and biotechnology etc.  

9. Satellite townships offering general purpose real estate or 

specifically focussed on provision of education, health, resort or 

entertainment facilities.  

10. Any other infrastructure projects, notified by the State 

Government.  

__________ 

 



THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 15 

SCHEDULE-II 

[See sections 2 (c) and 15 (a)]  

NATURE OF CONCESSION AGREEMENT OR 

ARRANGEMENT  

The following concession agreement or arrangement with variations 

and combinations may be arrived at by the Government agency or the local 

authority for undertaking infrastructure project with private sector 

participation. 

1. Build Own /Operate and Transfer Agreement or Arrangement.- An 

agreement or arrangement whereby the developer undertakes to finance, 

construct, maintain and operate a project and whereby such project is to vest 

in the developer for a specified period. During the period of operation of the 

project by developer, he may be permitted to charge user charges as specified 

in an agreement or arrangement. The developer is required to transfer the 

project to the State Government or a Government agency after the expiry of 

the period of operation.  

2. Build Own Operate and Maintain Agreement or Arrangement.- An 

agreement or arrangement whereby a developer undertakes to finance, 

construct, operate and maintain a project and whereby such project is to vest 

in developer for a specified period. During the period of operation of the 

project, he may be permitted to charge user charges as specified in the 

agreement or arrangement.  

3. Lease Management Agreement or Arrangement.- An agreement or 

arrangement whereby the State Government or a Government agency leases 

a project owned by the State Government or the Government agency to the 

person who is permitted to operate and maintain the project for the period 

specified in the agreement or arrangement and to charge user charges 

therefor.  

4. Rehabilitate/Operate and Transfer Agreement or Arrangement.- An 

agreement or arrangement whereby an existing project is vested in a person 

to renovate, operate and maintain for the period specified in the agreement or 

arrangement after the expiry of which the project is required to be transferred 

to the State Government or a Government agency. During the period of 

operation of the project by the developer, he may be permitted to charge user 

charges as specified in the agreement or arrangement.  

5. Rehabilitate Own Operate and Maintain Agreement or 

Arrangement.- An agreement or arrangement whereby an existing project is 

vested in a person to renovate, operate and maintain. The developer shall be 

permitted to charge user charges as specified in the agreement or 

arrangement.  

6. Management Agreement or Arrangement.- An agreement or 

arrangement whereby the State Government or the Government agency 

entrusts the operation and management of a project to a person for the period 

specified in the agreement or arrangement on payment of specified 

consideration. In such agreement, the State Government or the Government 



16  THE HIMACHAL PRADESH INFRASTRUCTURE DEVELOMENT ACT, 2001 

agency concerned may charge user charges and collect the same either itself 

or entrust the collection for consideration to any person who shall after 

collecting the user charges pay the same to the State Government or the 

Government agency.  

7. Service Contract Agreement or Arrangement.- An agreement or 

arrangement whereby a developer undertakes to provide services to the State 

Government or a Government agency for the specified period. The State 

Government or Government Agency shall pay him an amount in accordance 

with the agreement or arrangement. 

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