Schedule V

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. (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;- (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: (i) The Government may guarantee receivables only in the case of Category II Projects, provided they are not collected directly from users. (ii) 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: (i) Direct financial support may be considered only in the case of Category II Projects. (ii) The Government will have the final authority to approve direct financial support. (iii) Infrastructure Authority will ensure that appropriate Project structuring will eliminate, to the extent possible, the need for financial support. (iv) Extent of financial support will be used as one of the selection criteria whenever financial support is to be provided.