Amendment status not verified — confirm the current text below against the official source.
Any other Projects or sectors may be notified by the Government. • 30 SCHEDULE-IV [See Section 2 (r)] GENERIC RISKS The Government Agency or the Local Authority will endeavor 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. (vii) Environmental Damage-Subsisting\On going. II Operation Period Risks: (i) Government Agency Default. (ii) Developer Default. (iii) Termination of Concession Agreement by Infrastructure Development Authority or Government or Government Agency. (iv) Environmental Damage - Ongoing (v) Labour Risk. (vi) Technology Risk. III Market & 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 • 31 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 • 32 SCHEDULE-V [See Section 2 (hh)J 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 The State Government will offer the following administrative support to all the Project 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: The State Government will offer asset based support to all Category II Project 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: (a) Government owned land would be provided at concessional lease charges for Projects where ownership would revert to the Government, within a maximum period of 33 years from the date of grant of land; (b) The State Government will commit/facilitate development of linkage Infrastructure for Projects. • 33 (iii) Foregoing Revenue Streams: 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.- (a) exemption of sales tax on all inputs required for Project construction. (b) exemption of stamp duty and registration fees on the first transfer of land, from the Government to the Developer and on Project agreements registered in the State. (c) Exemption from payment of seginiorage fees i.e. cess on minor minerals during construction period. (iv) Guarantees: (a) The Government may guarantee receivables only in the case of Category II Projects, provided they are not collected directly from users. (b) The Government may also provide off take guarantees if it is the service distributor and is responsible for collection of user levies. (V) Financial Support: (a) Direct financial support may be considered only in the case of Category II Projects. (b) The Government will have the final authority to approve direct financial support. (c) Infrastructure Development Authority will ensure that appropriate Project structuring will eliminate, to the extent possible, the need for financial support. (d) Extent of financial support will be used as one of the selection criteria whenever financial support is to be provided.