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Model Concession Agreement

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Model Concession Agreement (MCA) forms the core of public private partnership (PPP) projects in India. The MCA spells out the policy and regulatory framework for implementation of a PPP project. It addresses a gamut of critical issues pertaining to a PPP framework like mitigation and unbundling of risks; allocation of risks and returns; symmetry of obligations between the principal parties; precision and predictability of costs & obligations; reduction of transaction costs and termination. The MCA allocates risk to parties best suited to manage them.

The Model Concession Agreements for various sectors like National Highways, State Highways, Urban Rail Transit System and Ports are available. The details regarding the MCAs for different sectors and its overview can be accessed here

Planning Commission developed the first version of the Model Concession Agreement (MCA). This was done considering the need to standardize documents and processes for the PPP framework in the country for ensuring uniformity, transparency and quality in development of large-scale infrastructure projects. Subsequently, the Planning Commission had developed various other versions of the MCA considering the different PPP modes like Built Operate Transfer (BOT) (Toll), BOT (Annuity), Design, Build, Operate and Transfer (DBOT) and Operate Maintain and Transfer (OMT) addressing to a significant extent, the changing needs of the sector.



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