Revised Model Pact To Gain An Enthusiastic Response From Stakeholders: Sonowal

 In such models, the government usually provides grants to Private entities for a small span of time.

Union minister Sarbananda Sonowal presented the altered concession agreement  2021 for public-private partnership projects at major ports. Usually, a concession agreement is an agreement that is signed by the Government and a private entity. In such models, the government usually provides grants to Private entities for a small span of time. Such agreements are signed for the development of infrastructure projects under the Public-Private Partnership model. Sonowal said 31 projects, which amounted to over Rs 14,600 crore will be awarded by 2024-25. According to the Ports, Shipping & Waterways ministry statement, presently there are more than 80 public-private partnership (PPP)  projects in the sector. The investment of these projects at various stages stands at over Rs 56,000 crore.

According to an official statement, 53 projects worth Rs 40,000 crore are under operation. Moreover, 27 projects of over Rs 16,000 crore are at the implementation stage, the statement added. Going forward, the Ministry of Ports, Shipping, and Waterways have announced  The pipeline of 31 projects of more than Rs 14,600 crore to be awarded on PPP till the financial year 2024-25. Sonowal said that the new model concession agreement (MCA) – 2021 will gain an enthusiastic response from the stakeholders. The Union ports, shipping & waterways minister in a statement said that the new MCA will be relevant for all the future PPP projects at major ports. The statement further clarified that it would be applicable to all the projects which are also approved by the government under the bidding stage.

The statement further clarified that it would be applicable to all the projects which are also approved by the government under the bidding stage.

In a statement, Sonowal said that many changes are being adopted after consultation from the concerned stakeholders and many changes are taken from the best practices. The Model Concession Agreement – 2021 (MCA), will create more enthusiasm among the developers, investors, and lenders in the Ports sector. The minister highlighted the provision of change in cargo following an unpredictable event, this is the first time that such provision has been introduced. 

Technically, to reduce the risk of the concessionaire. Under the new model, flexibility is given to the concessionaires to fix tariffs according to the market conditions. This provision will allow a level playing field for the private terminals at major ports to be more competitive in comparison to private ports for the cargo.