A concession contract is a contract that gives an enterprise the right to carry on a particular activity under the jurisdiction of one government or on the ownership of another enterprise under certain conditions. Concession contracts often involve contracts between the non-state owner of a facility and a concessionaire or concessionaire. The agreement confers on the concessionaire the exclusive rights to operate its activities in the installation for a specified period of time and under certain conditions. However, the implementation of the WAB also has several drawbacks. Often, the format and language of WABs are copied without due regard to the specific impact of each project. The structure of the WAB is rigid. Concession contracts are often complex and long-term contracts and it is not possible to anticipate all the risks that may arise during the execution and operation of the implemented project. In such circumstances, the absence of a flexible approach harms the interests of private parties. From time to time, the Indian government has set up various commissions to oversee the development of concession contracts. The B.K. Chaturvedi Committee was established in 2009 to address procedural obstacles to the National Highway Development Project (NHDP). In its report, the Committee recommended several amendments to the CSA.

It supported the removal of the termination clause and proposed to extend the concession period if the concessionaire continues to strengthen the facility. It also proposed to give developers the option to divest their 51% stake after two years from the date of commercial operation, to use 3 types of delivery (BOT Toll, BOT Annuity and EPC) and to allow lenders to collect fees on fiduciary accounts. The more attractive and profitable a concession is, the less likely it is that a government will offer tax advantages and other incentives. In India, the Supreme Court adopted the doctrine of the main agencies regarding concession agreements in VST Industries Limited v VST Industries Workers` Union and Anr. In this case, the Supreme Court ruled that a private body that controlled or operated infrastructure in India under a concession contract should be considered a public function and that those entities were required to act in the public interest. A lease is a concession of the property through a specific description of the land or other real estate against a particular price and payment agreement. On the contrary, the concession under a concession contract is a license to exploit the property for specific purposes, once the object has been reached, all these rights must be returned to the licensor. . . .