chapter  19
10 Pages

The Evolving Market and Models for PPPs in Europe

ByJames Neal, Ernst & Young

Infrastructure development in India continues to face various legal challenges. This chapter focuses on some of the key legal concerns that surround infrastructure development in India. All large scale infrastructure projects in India are primarily implemented through a private-public partnership (PPP) model which often takes the form of a concession or a licence granted by the government or a regulatory authority designated for a particular sector. Most infrastructure projects in India are implemented by forming special purpose companies, for obtaining non-recourse/limited financing and many times due to specific requirements of regulators in many sectors. Many public infrastructure projects guarantee a termination payment to the financiers as well as the developers in the event a concession/licence is terminated before its expiry. The Ministry of Coal allots a certain quantity of domestic coal by way of a letter of allotment and then a fuel supply agreement is executed.