PPP allowed in major ports through concession agreement
The government has approved Rs.10,000 crore investments through award of Public Private Partnership (PPP) projects globaltenders for FY 2024-25 at V.O. Chidambaranar Port (Rs.7,055 crore), Deendayal Port (Rs.1,880 crore), Syama Prasad Mookerjee Port (Rs.1,065 crore), Rajya Sabha was briefed on 6 Aug ipa .
Guidelines for Tariff Fixation for PPP Projects have been formulated, added Minister of Ports, Shipping and Waterways Sarbananda Sonowal in a written reply shipmin .
In order to provide more autonomy, flexibility and attract private investments , enactment of the Major Port Authorities Act, 2021, has replaced the Major Port Trusts Act, 1963, Revision of Model Concession Agreement (MCA), he pointed out.
Further, Private Sector Participation has been allowed in the Major Ports for specific projects, berths and terminals through concession agreement for a specific period sbi .
This is being done by way of open competitive bidding process on revenue share and royalty between the Major Port Authority and the Concessionaire bse .
After expiry of the concession period, the asset is handed over to the Port Authority nse .
Sonowal gave details of the 12 major ports under the Central Government’s jurisdiction, namely Chennai, Cochin, Deendayal (Kandla), Jawaharlal Nehru (Nhava Sheva), Kolkata, Mormugao, Mumbai, New Mangalore, Paradip, V.O. Chidambaranar (Tuticorin), Visakhapatnam and Kamarajar Port Limited iba .
None of these major ports have been privatized, as the ownership of the land and waterfront remains with the government, he underlined conexpoconagg .
However, Public-Private Partnership (PPP) participation is allowed through a concession agreement for specific projects, berths, or terminals within these ports deutsche-boerse .
This participation is secured via an open competitive bidding process, where the concessionaire pays revenue share or royalty for a fixed period smw .
Once the concession period concludes, the port assets are returned to the port authority.
Currently, 89 out of 277 berths in these major ports are operated under the PPP model etenders.gov.in/eprocure/app.
The operation of 89 berths at major ports is currently conducted under this model, with the ownership of the land and waterfront remaining with the government ted.europa.eu/en/ .
The management of non-major ports falls under the jurisdiction of State Maritime Boards and State Governments.
Additionally, there are 217 non-major ports managed and controlled by respective State Maritime Boards or State Governments, said the Minister inmex-smm-india .
These include ports in Gujarat (48), Maharashtra (48), Goa (5), Daman and Diu (2), Karnataka (13), Kerala (17), Lakshadweep Islands (10), Tamil Nadu (17), Puducherry (3), Andhra Pradesh (15), Odisha (14), West Bengal (1), and Andaman and Nicobar Islands (24). Fiinews.com
