Revises the Model Concession Agreement for PPP Projects in Ports

On 3 January 2018, the Union Cabinet approved amendments to the Model Concession Agreement (MCA) on public-private partnerships (PPP) in the port sector in an effort to make port projects more investor-friendly. Among other things, the new MCA provides easier exit route for developers, as they can now divest their equity up to 100 per cent after completion of just 2 years from the Commercial Operation Date (COD). The new MCA also lowers standard rents for land to reduce the cost involved in any expansion of port facilities.

• Type:

  • Treatment and operation (Other)

• Industry:

  • Services (Transportation and storage)

• Sources:

  • Press Information Bureau, Cabinet approves revised Model Concession Agreement for PPP Projects in Major Ports , http://pib.nic.in/newsite/PrintRelease.aspx?relid=175214, 03 Jan 2018
  • Economist Intelligence Unit, Cabinet approves new concession agreement for port projects, http://country.eiu.com/article.aspx?articleid=456287029&Country=India&topic=Economy&subtopic=Forecast&subsubtopic=Policy+trends&u=1&pid=1876298171&oid=1876298171&uid=1, 05 Jan 2018
  • live mint, Modi govt signs off on radical makeover for ports sector, http://www.livemint.com/Home-Page/yOlyrKfVKe71Ts8Xdm6jGJ/Modi-govt-signs-off-on-radical-makeover-for-ports-sector.html, 04 Jan 2018