The Union Cabinet chaired by Prime Minister Narendra Modi approved amendments in the Model Concession Agreement (MCA) which envisage constitution of the Society for Affordable Redressal of Disputes-Ports (SAROD-PORTS) as dispute resolution mechanism similar to provision available in highway sector, a statement said.
"Just like roads, several port projects were stalled due to lack of governmental approvals. Centre has decided to set up a committee to look after these projects," Shipping Minister Nitin Gadkari told reporters here.
As per the revised MCA, developers would be provided exit route by way of divesting their equity up to 100 per cent after completion of two years from the Commercial Operation Date (COD).
"This is now similar to the MCA provisions of highway sector," the statement said.
It added that concessionaires would now be free to deploy higher capacity equipment, facilities and technology, and carry out value engineering for higher productivity and cost saving.
"The amendments have been proposed keeping in view the experience gained in managing Public Private Partnership projects in port sector during the last twenty years and to obviate the problems being faced on account of certain provisions in the existing MCA," it said.
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