New guidelines for PPP in port projects
The Ministry of Shipping is revising the policy guidelines for awarding projects on the public-private partnership (PPP) basis for expanding capacities at major ports across the country. According to sources in the ministry, the guidelines are being revised to prevent the monopoly of a single private operator at a port. However, no changes are being made in the model concession agreement (MCA).
As per the new regulations, the successful bidder of a project at a particular port would be barred from bidding for the subsequent project at the same port. Sources further added that the revised guidelines would be issued to major port trusts in the country as policy directives.
This development comes at a time when two major port projects estimated to be worth Rs7,000 crore for the development of container terminals in Tamil Nadu and Maharashtra, are stuck due to legal issues arising from the lack of clarity on policy that governs this issue.