DEVELOPMENT FUND UTILIZATION AND DISTRIBUTION

(1) The Development Fund shall be utilized for the following Activities: a) To provide equity, viability gap funding support to projects as approved by the Board; b) To provide concessional debt to projects as approved by the Board; c) To purchase assets / land for development of projects identified from time to time; d) For project development costs such as cost of consultants / advisors and other experts, creation of collateral, promotional Activities etc. for UIIDB, for furthering projects facilitated by the Board and carrying out its functions under the provisions of this Act; e) For all operational expenditures of the Board including but not limited to payment salaries, expenditure of supplies etc; Provided that non-project related administrative costs of the Board including salaries of employees, cost of office and supplies etc. shall not exceed INR 10 Cr (inflation adjustment every year with Cpl rate from the date of notification of the Ordinance) in the first three years of formation of Board and subsequently should not exceed INR 10 Cr (inflation adjustment every year with Cpl rate from the date of notification of the ordinance) or 50% of the income of the Board in a year, whichever is lower. f) To undertake infrastructure projects on EPC as approved by the Board; and g) And undertake any other / additional Activities as outlined in section 6 and as approved by the State Cabinet from time to time. (2) On the direction of State Cabinet UIIDF, shall distribute dividends to the State Government if the corpus of the Fund exceeds INR [500] (Five Hundred) crores. (Dividends in any particular year shall be equal to [Repo rate + 4%] multiplied by [Corpus of the fund in excess of INR 500 Cr]). (3) Further, in case the corpus of the Fund reaches a value of more than 0.5% of the State's GDP in the previous financial year, the Fund would transfer the additional amount (over and above 0.5% of State's GDP in the previous financial year) to the State treasury.