In India, the Supreme Court recognized the doctrine of essential facilities for concession agreements in the case of VST Industries Limited against VST Industries Workers` Union and Anr. In this case, the Supreme Court held that a private body controlling or operating infrastructure in India under a concession agreement should be considered a public service and that these entities are required to act in the public interest. “Instead of reviewing the wavs, why not consider solving the problems of existing concession agreements. You are only talking about a new MCA. The time must consider and correct the difficulties/problems of existing concession agreements,” he said. The more attractive and profitable a concession is, the more likely it is that a government will offer tax breaks and other incentives. Also known as concession agreements, concession agreements include different sectors and are available in many sizes. These include hundreds of millions of dollars worth of mining concessions, as well as small food and beverage concessions at a local cinema. Regardless of the type of concession, the dealer normally has to pay the concession fee to the party that grants it the concession fees. These fees and the rules that allow them to change are usually described in detail in the contract.
A rental agreement is a property award of a specific description of the land or other property against a specific price and payment agreement. On the contrary, the concession under a concession agreement is a licence for the use of the property for a specific purpose, once the objective is achieved, all those rights must be returned to the grantor. In this process, the right to manage and control the property is maintained by the owner. Example 4: Argentina – Contrato de Concesién Ferroviaria (430/94) and Addenda (167/01), Grupo de Servicio 6, Lenea Belgrano Norte (Spanish) – Concession contract between the Argentine state and a private entity (Ferrovias Sociedad Anonimas Concessionarios) on the Belgrano Norte railway line (from Villa Rosa to Retira – Buenos Aires Metropolian Area) with surcharge. The concession concerns a railway line for the public transport of passengers (concesién de servicio péblico). The dealer has the right to use all transferred assets, including rolling stock. Concessionaire is required to operate the rail system, maintain rail infrastructure and make the investments specified in the concession contract. The holding of assets is the responsibility of the agreeing authority. Assets are reset to the consent authority at the end of the concession period, including assets acquired by the dealer (exemptions apply to vehicles).
The term of the contract is 24 years (extendable). The dealership is required to grant access to the tracks to railway companies defined in the agreement or to other dealers on the basis of access agreements against track access charges. The conditions for access to the track and access fees must be fair and reasonable (point 6.3 of the concession contract). Details are contained in the treaty annexes (not yet published). 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.