Scheme to make port sector attractive gets Cabinet nod

Tribune News Service

New Delhi, January 3

The Union Cabinet today approved amendments in the Model Concession Agreement (MCA) to make port projects more investor-friendly and make investment climate in the port sector more attractive.

The amendments in the MCA envisage constitution of the Society for Affordable Redressal of Disputes —Ports (SAROD-PORTS) as dispute resolution mechanism similar to provision available in the highway sector. An official statement said the amendments have been proposed keeping in view the experience gained in managing PPP projects in port sector during the past 20 years and to obviate the problems being faced on account of certain provisions in the existing MCA.

The amendments in the MCA have been finalised after extensive consultation with the stakeholders. The new scheme provides an exit route to developers by way of divesting their equity up to 100% after completion of two years from the commercial operation date. This is now similar to the MCA provisions of the highway sector. Under provision of additional land to the concessionaire, land rent has been reduced from 200% to 120% of the applicable scale of rates for the proposed additional land.

Other decisions 

• The Union Cabinet on Wednesday gave its ex-post facto approval to India’s position at the recently concluded WTO ministerial meeting held in Argentina in December last year
• The mandate exercised and approach adopted at the WTO was aimed at protecting India’s interests, priorities and concerns during the Ministerial Conference, said an official statement