Shri Mansukh Mandaviya called the SAROD ports as Game Changer when introducing and added that it would become the central mechanism of ummeed (hope), Vishwas (confidence) and Nyaya (justice) in the port sector of India. Shri Mandaviya added that the implementation of concession agreements was a top priority in the letter and mind. SAROD ports will resolve disputes in a fair and equitable manner, while saving a great deal of time and law. Barely two years after the NDA-1 cabinet revised the model concession agreement (MCA) for public-private partnership (PPP) projects with large port funds, the Ministry of Navigation is back on the drawing board in an attempt to reshape the key document that defines the terms of a port contract. “Private investors are hesitant to propose new projects, even after the latest mcA revision. Why can`t the department first accept that there is a slowdown and that there is less cargo and that there is enough capacity to supply the existing cargo. Growth over the next five years can also be easily integrated into existing capacity,” said the manager of a port operating company. SAROD ports will advise and assist in resolving disputes through arbitration in the maritime sector, including ports and shipping in large ports, non-large ports, including private ports, moorings, terminals and ports. It also includes disputes between the granting authority and the licensee/conedant/contractant, as well as disputes between the licensee/concessionaire and their contractors arising from and during the execution of various contracts.
The new model agreement also proposes that the concession be reviewed by an audit body in accordance with existing legislation at the end of 15 years from Cod in order to obtain the necessary mitigation measures. The nature and quantity of mitigation measures will be triggered in accordance with the guidelines issued by the government. The new model concession agreement allows private players to leave port projects after six years and gives them the power to issue bonds to refinance the debt. Contrary to previous experience, the third edition of the MCA is developed by the ministry on the basis of ideas or proposals from “existing/potential investors/PPP dealers/individuals/stakeholders.” According to the new MCA, the dealer holds up to three years after the commercial operating date (COD) 51% of the equity, then 26% for an additional 3 years. The private party would therefore be free to leave the COD after 6 years. Dr Sanjiv Ranjan, secretary of the Ministry of Navigation, said all major ports are moving towards the “country lord model” in the coming days. Many dealers will work with major ports. SAROD ports will generate the confidence of private players and ensure the right environment for our partners.