Model Concession Agreement

Model Concession Agreement

A new Model Concession Agreement (MCA) for development of Port infrastructure in the country has been prepared and is presently under stakeholders consultation. The key changes proposed are :-

(i) Change in equity holding to provide exit route.

(ii) Discounts on ceiling tariff and exclusion of storage charges.

(iii) Provision of additional land to the Concessionaire.

(iv) Provision todeploy higher capacity equipments for higher productivity and improved utilization of Port assets.

(v) Concessionaire can be compensated for all changes in law except imposition of New Direct Tax.

(vi) Provision for mid-term review and dispute resolution.

(vii) Provision to initiate commercial operation before Commercial Operations Date(COD).

(viii) Re-financing of debts.

This information was given by Minister of State for Shipping, Shri Pon. Radhakrishnan in a written reply to a question in Lok Sabha today.

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UM/NP