VISAKHAPATNAM: A two-day maritime PPP conclave being conducted by Visakhapatnam Port Authority got underway on Wednesday. Minister of State MOPSW Shripad Yesho Nayak during his inaugural address highlighted the government’s emphasis on port-led development, and ensuing plans for commissioning projects under Sagarmala, inland waterways.
He said that in the existing PPP model concession agreement (MCA) there are 4 main issues - levying accountability on the concessioning authority, need for flexibility in specifying minimum guaranteed cargo (MGC), sharing of project risks, and absence of a grievance redressal mechanism. To address all these issues, the ministry has brought new MCA 2021 which will be a game changer in the PPP in port sector, he added.
Delivering keynote address VPA chairman K Rama Mohana Rao said that the Vizag port is also moving ahead in the era of PPPs and is envisaged to be a full-fledged landlord port within few years. The port presently has six BOT / PPP terminals operating in the vicinity and four more PPP projects are under pipeline this year.
The port chairman said India’s vast inland waterways stretching approximately 20000km is also emerging as a viable alternative to road and rail transport. India is ranked 19th among the leading maritime countries in the world for transportation of merchandise trade. As of now, 86 Projects worth of Rs 55,000 crore have been granted approval by Central government under PPP mode.