Date:04/01/2008 URL: http://www.thehindubusinessline.com/2008/01/04/stories/2008010451881200.htm

Back Ports: Model concession pact approved

Our Bureau

New Delhi, Jan 3

Bidding for new port projects to be taken under the Central Government jurisdiction is likely to gain momentum with the Union Cabinet approving the model concession agreement (MCA) for private sector participation in major ports.

MCA is the guiding contractual document between the port authorities and the private company that would develop and operate the port.

Informing this, the Minister for Parliamentary Affairs, Mr Priya Ranjan Dasmunshi said that the decision would protect user interests through adherence to performance standards.

As per the MCA, the port tariff ceilings would be fixed upfront and the competitive bids would then be invited from private companies wanting to build and operate the terminals. The tariffs charged at major ports would be linked to the efficiency of services provided by the terminal operators or port authorities.