Concessions are a particularly viable way to implement PPPs when public or local authorities need to mobilise private capital and know-how to complement limited public resources. Under a concession agreement, ownership of the project assets remains in the hands of the Authority, while constructive ownership of the asset is transferred to the concessionaire, as well as certain rights and obligations relating to the project. Upon expiry or termination of the concession contract, all asset values of the project (including assets acquired by the concessionaire for the purpose of the project) shall be returned to the Authority. In India, the Supreme Court adopted the doctrine of the main agencies regarding concession agreements in VST Industries Limited v VST Industries Workers` Union and Anr. In this case, the Supreme Court ruled that a private body that controlled or operated infrastructure in India under a concession contract should be considered a public function and that those entities were required to act in the public interest. A lease is a concession of the property through a specific description of the land or other real estate against a particular price and payment agreement. On the contrary, the concession under a concession contract is a license to exploit the property for specific purposes, once the object has been reached, all these rights must be returned to the concessionaire. In this process, the right to manage and control the property remains in the hands of the owner. The “Concessions Agreements in India” guide is our desire to give our readers a detailed overview of ELP`s collective experience with concessions.
We hope this will create an interesting reading. We welcome the opinion of each reader and we welcome your comments. Ownership of the project assets under a concession agreement remains in the hands of the Authority, while the concessionaire obtains only constructive ownership. Once the agreement is completed, all project resources will be returned to the Authority. In 2015, a committee chaired by Vijay Kelkar was created to revive the PPP infrastructure model. In its report, the Committee recommended the development of a review and renegotiation mechanism to introduce flexibility into concession agreements. . . .