The Hindu Business Line : Port projects delayed

With the Government yet to firm up the new model concession agreement (MCA) for ports, new port development projects are getting delayed as most of them will be taken up on a public private partnership basis. MCA is the standard document that defines the duties and responsibilities of the Government and the private partner.

In fact, bids for even those projects that have received the in-principle approval from the public private partnership appraisal committee (PPPAC) cannot be invited as the approvals have been given subject to the new MCA getting finalised. PPPAC is an inter-ministerial committee that has to approve infrastructure projects (being taken up on a public private partnership basis) before the bids are invited by the Ministry concerned.

Re-worked MCA

For instance, projects such as building a second container terminal (by converting a berth) at Tuticorin, the mechanised iron ore berth at New Mangalore, and the deep draught iron-ore berth at Paradip have already received in-principle approvals from the PPPAC. “However, the observations made by PPPAC in those clearances relate to issues that will be sorted out only after the new MCA is firmed up,” said official sources.

The MCA, which is being reworked by an inter-ministerial group comprising the Shipping Ministry and Planning Commission, has not yet been firmed due to differences on certain issues. The Shipping Ministry maintains that it has sent its inputs to the inter-ministerial group.

“We have submitted our inputs. Now, it is for the group to take a final view,” said Shipping Ministry sources. Non-firming up of the MCA would also delay majority of about 17-18 projects that the Shipping Ministry aims to move ahead on this fiscal since bids cannot be invited for these projects. The Government has decided that new projects will only be based on the new MCA only.

Long list

The projects that the Shipping Ministry aims to take up this financial year include: deep draft iron ore berth with an estimated cost of Rs 504 crore and deep draught coal berth (Rs 388 crore) at Paradip port; 255 metre WQ6 berth (Rs 47 crore) and EQ10 jetty at inner harbour (Rs 23 crore) in Visakhapatnam; container terminal in Ennore (Rs 1300 crore); second container terminal by converting a berth (Rs 150 crore) and development of outer harbour berths (Rs 4350 crore) in Tuticorin.

On the Western coast, the projects include international cruise terminal (Rs 303 crore), LNG degasification terminal (Rs 2200 crore) and international bunkering terminal (Rs 95 crore) in Cochin; mechanised iron ore berth (Rs 103 crore) and dedicated berth for Suzlon (Rs 142 crore) at New Mangalore.

Also, the development of berth number 7 for bulk cargo handling in Goa (Rs 200 crore); extension of existing container berth by 330 metres in Jawaharlal Nehru port (Rs 600 crore); four multipurpose cargo berths (Rs 440 crore), berthing and allied facilities at Tekra-Tuna (Rs 587 crore) and bunkering terminal (Rs 40 crore) at Kandla.

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