The refinancing provisions are intended to facilitate the availability of long-term funds at attractive prices to dealers in order to improve the financial viability of projects. Extension of the SAROD-PORTS dispute resolution scheme to existing dealers, including the introduction of the complementary agreement to be signed between the dealer and the dealer authority. The provision of additional land for the dealership reduced the base rent from 200% to 120% of the rates applicable to the additional land proposed. The new definition of “change of law” also includes (i) the imposition of standards and conditions arising from TAMP directives/regulations, environmental and labour law, and (ii) the increase and imposition of new taxes, taxes, etc. to compensate the dealer. As the viability of the project has been compromised, the concessionaire is now compensated for the increase and imposition of new taxes, taxes, etc., with the exception of the collection/increase of a direct tax by the central government and the government. Making an exit route available to developers by ceding their equity up to 100 percent after the 2-year conclusion from Operation Commercial Date (COD). This is now similar to the provisions of the MCA for the motorway sector. “Actual project cost” would be replaced by “Total Project Cost.” A monitoring agreement has been put in place to maintain the periodic report on the status of the project. Model concession agreements are available for various sectors, such as National Highways, State Highways, Urban Rail Transit System and Ports. The details of waBs for different sectors and their overview are available here: Model Concession Agreement (MCA) is at the heart of public-private partnership (PPP) projects in India. The MCA sets out the policy and regulatory framework for the implementation of a PPP. It addresses a number of critical issues related to a P3 framework, such as risk mitigation and dissociation; allocating risks and returns symmetry of commitments between the main parties; Precision and predictability of costs and commitments; Reduced transaction and termination costs.
The MCA attributes the risk to the parties best placed to manage them. The dealer would be free to use larger facilities/installations/technologies and perform value engineering for better productivity and better use and/or reduced project facility costs. The Planning Commission developed the first version of the Concession Agreement (MCA) model.