New Model Concessionaire Agreement to make port contracts investor friendly

Under the revised MCA, the developers have been allowed to exit from a project by way of divesting their entire equity after completion of two years from the commercial operation date

The recently approved Model Concessionaire Agreement for the port projects is expected to open a string of opportunities for private companies in the maritime sector. The new model agreement allows flexible working contracts and exit norms.

Experts feel the possible renegotiation of contracts through the exit policy route would bring in respite to the industry.

The MCA will be applicable for new projects conceived under the shipping ministry's ambitious Rs 8 trillion Sagarmala programme. Under Sagarmala, the government plans to construct new ports and 142 cargo terminals at major ports.

According to an official, the decision that was approved by