Hails PPP model for ease of Business
Emphasising the importance of PPP in the ports and shipping sector, Visakhapatnam port authority’s chairman, Mr Rama Mohan Rao identified PPP to be an effective tool for attracting major investments in both Major Ports and Minor Ports.
As of now, 86 Projects worth of Rs.55,000 Crores have been granted approval by Government of India under PPP mode, said the chairman VPA and informed that Visakhapatnam Port Authority is too moving ahead in this era of PPPs.
‘We have envisaged to become a full-fledged Landlord Port within a few years’ said Mr Rama Mohan Rao speaking at the Maritime PPP Conclave organized by VPA to celebrate the 25th Anniversary of the 1st PPP Project in the Port Sector.
The Port presently has 6 (six) BOT / PPP Terminals operating in the vicinity, viz., VGCBPL, EVTL, VCTPL-I & EXTN, AVRIPL and VSPL and four more PPP projects are under pipeline this year. There is immense potential for the country to move forward in the direction and to attract more and more Private Investments through PPP mode, in the overall growth prospects of India’s Trade.
Delivering the inaugural address Mr Shripad Yesho Nayak Minister of State MOPSW said that the government’s emphasis on Port-led Development, and ensuing plans for commissioning projects under Sagarmala, inland Waterways and Smart Port cities requires Private Investments which is possible through PPP.
He also noted 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: Absence of a grievance redressal mechanism.
To address all these issues, MoPSW has brought new MCA 2021 which will be a game changer in the PPP in Port Sector
Other senior officials like Mr K.Engineer, Commissioner Customs, Vizag; Mr Anup Kumar Sathpathy, DRM, Vizag, Mr Durgesh Dubey, Dy.Chairman VPA and Mr J. Pradeep Kumar, CVO and a large number of stakeholders of VPA, AP Maritime Board, Trade, Govt officials attended the 2 day programme.