Primary law, Tamil Nadu land law
The Tamil Nadu Infrastructure Development Rules, 2012
The Tamil Nadu Infrastructure Development Rules, 2012 were made by the Governor of Tamil Nadu under the Tamil Nadu Infrastructure Development Act, 2012 and took effect on 1 January 2012. They govern the Tamil Nadu Infrastructure Development Board, infrastructure project oversight, public-private partnership support, project incentives and financing from the Tamil Nadu Infrastructure Development Fund. The supplied text does not state a government order number or an issuing department.
What the rules govern
The Tamil Nadu Infrastructure Development Rules, 2012 establish procedures for infrastructure projects handled or recommended by the Tamil Nadu Infrastructure Development Board. They cover project publication, procurement, monitoring, incentives, applications for financial support and release of money from the Tamil Nadu Infrastructure Development Fund.
A multi-sector project involves stakeholders from more than one sector and cannot conveniently be assigned to a single public agency. The Tamil Nadu Infrastructure Development Board may specifically declare a project to be a multi-sector project.
Who may be affected
The Tamil Nadu Infrastructure Development Rules, 2012 principally affect sponsoring agencies, public agencies, concessionaires, private sector partners, lenders and bodies implementing public-private partnership projects. Property owners, developers and buyers may encounter the rules where an infrastructure project affects land or property, or where specially created development rights form part of an incentive.
The Tamil Nadu Infrastructure Development Board may obtain information from public agencies and issue lawful directions concerning project conceptualisation or implementation. It may also recommend corrective action to the Government where execution requires policy changes or a project is found to have an adverse impact.
Key project and financing provisions
The Tamil Nadu Infrastructure Development Rules, 2012 provide that:
- Recommended projects must be published on the Government of Tamil Nadu website and the Tamil Nadu Infrastructure Development Board website.
- Each recommended project must receive a unique project identity code for correspondence with the Board.
- The Board may act as procuring entity for designated multi-sector, complex, innovative or other specifically designated projects.
- Government incentives may include exemption, deferment, refund or a loan in place of specified statutory levies, and rights to trade specially created development rights on land or property.
- Fund support may take the form of construction subsidy, capital grant, operational grant, annuity, equity, loans or another notified form of project financing.
- Tamil Nadu Infrastructure Development Fund support generally cannot exceed 20 per cent of total project cost. Where the Board is both procuring entity and sponsoring agency, support excluding annuity payments cannot exceed 40 per cent.
- Total public financial support cannot exceed 40 per cent of total project cost. Annuity payments are excluded from the stated ceilings.
- A sponsoring agency requiring fund support must submit an application and financial model before project scope and structure are finalised.
- A sponsoring agency cannot issue a Request for Proposal until the Board approves the proposed financial support.
Release of financial support
The Government in the Finance (Infrastructure Cell) Department sanctions releases from the Tamil Nadu Infrastructure Development Fund based on Board approvals and recommendations. Releases must follow the Concession Agreement schedule and conditions, with the sponsoring agency certifying that required commitments have been fulfilled.
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Common questions
Do these rules directly regulate an ordinary property sale?
The supplied text governs infrastructure projects, public-private partnerships, Board procedures and project financing. Its property-related provision allows specially created development rights on land or property to be offered as an incentive.
How can I identify a project recommended by the Tamil Nadu Infrastructure Development Board?
Recommended projects must be published on the Government of Tamil Nadu website and the Board's website. Each project must also be assigned a unique project identity code.
Can the Government offer tradable land or property development rights to a concessionaire?
Yes. The rules permit the right to trade specially created development rights on land or property as an incentive.
Who approves releases from the Tamil Nadu Infrastructure Development Fund?
The Government in the Finance (Infrastructure Cell) Department sanctions releases based on approvals and recommendations from the Tamil Nadu Infrastructure Development Board.
