The Ministry of Ports, Shipping and Waterways has come up with detailed guidelines for tackling pressured public-private-partnership (PPP) projects in major ports, a move it expects to unlock 27 million tons of cargo-handling capacity each year. “In the case of projects which were emphasized at the construction stage, i.e. at the pre-COD stage, the Concession Authority (main port) will pay the concessionaire or the lender of the concessionaire, as a complete and final settlement to take possession of the useful assets. Made by concessions, ”an official statement said.
The settlement amount will be equal to the lower value of the work done by the concessionaire under the concession agreement and will be deemed fit by the main port or 90% of the outstanding debt as defined in the concession agreement. In projects where work has been stopped due to inability of the facilitator to continue with project implementation and has been classified by lenders as non-performing asset by lenders or the process has started, due process under Bankruptcy and Bankruptcy Code 2016 or under Companies Act 2013 Will be Minister for Ports, Shipping and Waterways Sarbananda Sonwal said, “These guidelines will facilitate quick resolution of various problems and revival of stressful projects and unlock the immense potential of those projects which will create more trade and job opportunities.”
The ministry said the guidelines were intended to facilitate the revival of projects that fall into the category of stressed projects. These guidelines will pave the way for resolving cases under arbitration. Port resources may be re-used through bidding. “This will surely unlock the blocked cargo handling capacity of about 27 MTPAs which will create better trade opportunities for potential investors and the port authorities will start generating revenue. It will restore the confidence of investors or lenders and create employment opportunities, “the statement said.