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New Regulations & Incentives for Infrastructure Projects
Taxand India explains how the Act will benefit corporations within the real estate sector.
The Act applies to infrastructure projects of a value exceeding INR 500 crores (including through private sector participation). The Act empowers the TN Government to extend the applicability of the Act to any public-private partnership (PPP) project of less than INR 500 crores. The TN Government has also brought all PPP projects of over INR 10 crores under the ambit of the Act.
The objectives of the Act are:
- To provide for an enabling and facilitating environment in the State for financing, design, construction, maintenance and operation of infrastructure projects also through private sector participation.
- To provide for an institutional framework for identification, prioritisation and implementation of infrastructure projects and connected matters.
By introducing the Infrastructure Development Act, the TN Government has demonstrated its eagerness to develop infrastructure projects in the State. This is a welcome measure and is likely to encourage private participation in such projects. The grant of transferable development rights to concessionaires and exemption/refund/loan relating to taxes, fees, cess etc are notable incentives for multinationals.