The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved amendments in the Model Concession Agreement (MCA) to make the 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 Highway Sector.
The other salient features of the revised MCA include the following:-
7. Provision for commencement of operations before COD. This will lead to better utilization of assets provided by the Port in many projects before the formal completion certificate.
8. Provision regarding refinancing is aimed at facilitating availability of low cost long term funds to Concessionaire so as to improve the financial viability of the projects.
9. Extending the provision of SAROD-PORTS for redressal of disputes to the existing Concessionaires also by introducing the Supplementary Agreement to be signed between the Concessionaire and the Concessioning Authority.
10. Introduction of Complaint Portal for the use of port users.
11. A Monitoring Arrangement has been introduced for keeping periodical status report of the project.
The amendments have been proposed keeping in view the experience gained in managing PPP projects in port sector during the last twenty years and to obviate the problems being faced on account of certain provisions in the existing MCA. The amendments in the MCA have been finalized after extensive consultation with the stakeholders.
Source: Maritime Shipping News