The concession should not be confused as part of a concession contract with a lease agreement. A “leasing” is an interest in a real estate, while a “concession” is a license to operate on the property, but has no intrinsic property rights. Concession agreements are very different from other more common trade agreements on the provision of goods and services. Unlike other commercial contacts generally related to private party asset and real estate transactions, concession agreements are intended for public goods and services and are intended to provide essential facilities and services. Apart from that, concession contracts are long-term contracts that usually involve high-quality transactions. Concessions are a particularly practical way of implementing PPPs when governments or local governments need to mobilize private capital and know-how to supplement limited public resources. Under a concession agreement, ownership of the project property remains held by the Authority, while constructive ownership of the assets, as well as certain rights and obligations related to the project, are transferred to the concessionaire. At the expiry or end of the concession agreement, all project assets (including assets acquired by the dealer for the purposes of the project) are returned to the Amf. The Indian government has set up several committees from time to time to monitor the progress of concession agreements. B.K.
Chaturvedi Committee was established in 2009 to address the procedures of the National Highway Development Project (NHDP). In its report, the commission recommended several changes in the MMA. It supported the removal of the termination clause and proposed to extend the concession period if the concessionaire were to continue to develop the facility. It also proposed to give project proponents the opportunity to sell their 51% share after two years from the date of the negotiation transaction, the date of the introduction of 3 types of deliveries (BOT Toll, BOT Annuity and EPC) and to allow lenders to collect duties on trust accounts. In 2015, a committee was set up under the chairmanship of Vijay Kelkar to revive the ppp infrastructure model. In its report, the Committee recommended the development of a review and renegotiation mechanism to create flexibility in concession agreements. Model concession agreements (MCAs) have played an important role in decouping the complexity of these transactions. Using a standardized form for concession agreements reduces unnecessary delays and transaction costs. It also simplifies the bidding process and inspires the confidence of bidders and financiers who invest in infrastructure development. In addition, compliance with WAB standards reduces the costs and risks of small governments and private parties carrying out small projects at the local level, as in most cases they do not have the same expertise as the agencies and forums that develop THE ETCs.