HSA Advocates advised National Industrial Corridor Development Corporation Limited (NICDC) and National Industrial Corridor Development and Implementation Trust (NICDIT), on the framework agreements and governing documents, including the State Support Agreement (SSA) and the Shareholders Agreement (SHA) executed by and amongst NICDIT, the Government of Bihar (GoB) and Bihar Industrial Area Development Authority (BIADA) for the establishment of an Integrated Manufacturing Cluster in Gaya (IMC), in the state of Bihar, a node under the Amritsar-Kolkata Industrial Corridor (AKIC).
The IMC which is situated 39 km south of Gaya International Airport, is a significant development project covering 1,670 acres with an investment potential of over INR 16,500 crore and a project cost of over INR 1,300 crore. It aims to create 100,000+ jobs, boosting the local economy. The IMC will have a high level of connectivity, being close to major highways (NH-19 and NH-22) and railway stations, enhancing excellent connectivity and easy access to major transportation hubs. Strategic development of this IMC is aimed to attract industries across multiple sectors, including building materials, agri-food, leather, garments, furniture, and medical equipment. The establishment of IMC will stimulate economic growth, create job opportunities, and position the state of Bihar as a key industrial hub in Eastern India, thereby advancing the 'Make in India' initiative.
HSA Advocates advised and assisted NICDC and NICDIT on the applicable legal, regulatory and institutional framework including provisions under municipal laws for development of the IMC, in drafting, structuring, negotiating and finalizing the framework agreements, including the SSA and SHA, drafting and finalisation of the charter documents of the SPV, to ensure operational and financial autonomy to the SPV. The framework agreements included provisions in relation to notification of the project area as an ‘industrial township’, delegation of powers of planning authority to the special purpose vehicle (SPV) to be set up to develop the project and/or nomination of SPV to carry out planning and development functions, construction and development of the IMC, trunk infrastructure, and strategic projects, future financing and investments, and governance related matters in respect of the SPV.
The HSA team comprised of Soumya De Mallik (Partner), Prithviraj Chauhan (Principal Associate) and Debraj Ghosh (Associate).
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