Chapter VII DEVELOPMENT AND EXECUTION OF INFRASTUCTURE PROJECTS

(1) The State Government may set up or designate a Government agency, including a Government company, formed under the Companies Act, 2013 (Central Act 18 of 2013) as the project development agency and assign it the powers and functions relating to project development of a Special Investment Region, including those specified in sub-section (5). (2) The State Government may form or designate a nodal Government company or agency out of the project development agencies and companies mentioned in sub-section (1), to act as the project development agency for projects relating to all the Special Investment Regions in the State. (3) The nodal Government company or agency shall carry out its functions under general or specific directions of the Apex Authority and shall assist the Apex Authority and the State Government in undertaking project related task. (4) The nodal Government company or agency shall act in close co-ordination with the Apex Authority and shall give all support and guidance to the Regional development authorities and other agencies, developers and entities involved in the task of development of projects relating to the Special Investment Regions. (5) The functions of the nodal Government company or agency shall include the following, namely:- (i) conceiving and detailing of the projects; (ii) assessing the techno-commercial and economic feasibility; (iii) financial structuring of projects; (iv) environmental issues and solutions; (v) implementing the projects or awarding them to other developers or entities in a transparent manner; (vi) global marketing of the projects in the Special Investment Region and connected with the Special Investment Regions; (vii) raising finances from the market including financial and multilateral institutions; (viii) promoting and bringing in private sector participation in projects within or connected with the Special Investment Region in a transparent manner; (ix) entering into contracts and agreement with other entities for any of the purposes assigned to it; and (x) taking or suggesting any other steps for effective implementation, marketing and management of the projects connected with the Special Investment Region. (6) Any other entity proposing to undertake the development of infrastructure projects in the Special Investment Region or connected thereto, shall make the proposal in that regard to the Apex Authority.

(1) The Regional development authority may transfer the possession of its assets, including the land granted by the State Government, its agencies or local authority, as the case may be, to a Government company for development of infrastructure and amenities in the Special Investment Region, with the approval of Apex Authority. (2) Public assets, including land and rights thereon shall be given possession or conferred to a private entity for a project as per agreement or as the case may be, for the purpose of development of infrastructure and amenities in the Special Investment Region as per the concession agreement approved under Public Private Partnership guidelines.

(1) The Regional development authority may enter into agreement with a developer for carrying out any project or work in the Special Investment Region: Provided that, in case of infrastructure projects, the process of selection of a developer shall be as stipulated in the prevailing Public Private Partnership Policy for Infrastructure Projects for the State of Karnataka, in a transparent manner. (2) Without prejudice to the generality of the foregoing provisions, the Regional development authority may enter into a joint venture agreement with another Government company or another developer or entity to form a special purpose entity for developing or managing a particular project in the Special Investment Region, with prior approval of the Apex Authority: Provided that, while entrusting the project to a developer or a private entity, it shall be done in a transparent manner.

A person or an entity, having under his possession, the minimum contiguous area in the Special Investment Region as specified by the Apex Authority, from time to time and intending to undertake integrated development of the said area with economic activity and amenities, may apply to the Apex Authority or the agency specified by it, as per the procedure under section 18: Provided that, such development shall be subject to the development plan, the general development regulations and such other conditions as the Apex Authority or the agency specified by it, may deem fit.