Amendment status not verified — confirm the current text below against the official source.
Real Estate 15 Any other Projects or sectors as may be notified by the Government SCHEDULE IV [See Section 2 (1)] GENERIC RISKS The Government Agency or the Local Authority will endeavour 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 (viii) Environmental Damage – Subsisting / On going. II. Operation Period Risks: (i) Government Agency Default (ii) Developer Default (iii)Termination of Concession Agreement by Infrastructure Authority or Government or Government Agency. (iv) Environmental Damage-Ongoing (v) Labour Risk (vi) Technology Risk. III. Market a 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 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 SCHEDULE – V [See Section 2 (rr)] 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: (i) The State Government will offer the following administrative support to all the Projects 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: (i) The State Government will offer asset based support to all Category II Projects 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. 1[(a) Government owned land would be provided at concessional rates or otherwise for projects either,- (i) On a lease hold basis where ownership would revert to the Government within a maximum period of 99 years from the date of grant of lease, or (ii) On free hold basis] (b) The State Government will commit/facilitate development of linkage Infrastructure for Projects. III. Foregoing Revenue Streams: (i) The Government will forego revenue streams in case of all Category II Projects Government will forego revenue streams in case of Category I Projects only if the sector policy specifically provides for the same. Such support would be in the form of;-