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A Move Towards Creating Model Concession Agreement: Indian Railways

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The Railways ministry is initiating a move to create model concession agreements in order to kick-start the process of attracting FDI and private investments, close to 8 months after it came up with sectoral guidelines for such investments in November.

Source – ET

SNP Insights:

Model Concession Agreement (MCA) that forms the core of PPP projects is now the area of concern for IR and they have started looking into the policy and regulatory framework for PPP project implementation. IR through MCA also focuses to address the critical issues like mitigation, unbundling of risks, allocation of risks and returns etc. With the preparation of the MCA, it could be expected to provide a better level playing field for both the parties in the PPP and FDI allowed segments of IR.

Source – SNP Infra Research