Improved MCA for PPP projects in ports, shipping & waterways to be released soon
T K Ramachandran, Secretary, Ministry of Ports, Shipping and Waterways, at a press conference, in Chennai on Monday
| Photo Credit:
BIJOY GHOSH
The improved Model Concession Agreement (MCA) for Public-Private-Partnership projects in the ports, shipping and waterways will be issued soon. All the suggestions received from various stakeholders on changes has been incorporated in the improved MCA, Shipping Secretary T K Ramachandran, told newspersons on Monday.
Once the MCA is announced, the ₹7,000 crore outer harbour projects at the VOC Port in Thoothukudi could come under the new agreement, sources said. The bid was cancelled twice due to poor response from bidders and it could be restructured, they added.
The MCA lays down the standard terms relating to allocation of risks, contingent liabilities and guarantees and service quality and performance standards have also been developed by various Central Ministries. Nearly 90 projects worth ₹2 Lakh crore under Sagarmala Programme to be undertaken in PPP mode, according to data.
Ramachandran said, Shipping Ministry brought out the earlier MCA in 2021, which was an improvement over the previous one. “A special cell to understand the problems faced in implementing PPP projects has been set up,” he added.
The second major improvement in the framework for sector will be opening the tariff regime, which used to be under the Tariff Authority for Major Ports (TAMP), which has been abolished. “We are now bringing a new tariff regime where everyone will have a level playing field,” he said on Monday, at a roadshow organised by the Chennai Port Authority.
The roadshow was on the upcoming India Maritime Week 2025, scheduled from October 27 to 31 in Mumbai. The previous edition of the Maritime Exhibition saw investment value of ₹8.37 lakh crore, including the new Vadahvan port in Maharashtra. Of this, there was over 50 per cent conversion.
Adjudication board
Recently, an adjudication board has been set up to speed up adjudication. There is also a conciliation committee, which has been set up. This is a step before arbitration so that you know with both parties agreeing they can come to some consensus and things can happen quicker and then the Schedule of Rates, he said.
The India Maritime Week 2025 in October will be one of the world’s largest maritime events this year and will bring together one lakh delegates from 100 countries and is likely to generate over ₹10 Lakh crores investment opportunities, he said.
Speaking about the Sembcorp project in Tuticorin, Susanta Kumar Purohit, Chairperson, VOC Port Authority, said that the Singapore-based company will operate and produce green ammonia from the plant, spread over 160 acres in the key port area of Tuticorin. The company is finalising an offtake agreement, after which execution and facility setup will begin. It aims to produce its first green hydrogen molecule at the port by 2029, he said.
Sunil Paliwal, Chairperson, Chennai Port Authority, said that in the previous Maritime India Summits, the Chennai port signed over 30 MoUs worth over ₹8,000 crores.
Vikas Narwal, Managing Director, Indian Ports Association (IPA), said, they are actively considering conducting a feasibility study at Rameshwaram and Kanyakumari in Tamil Nadu for the new inclusion as the cruise destinations. The IPA is also in talks with the Andaman and Nicobar administration to explore the feasibility of locations for cruises.
As a follow up to the ASEAN-India Cruise Development meeting held recently, the IPA has initiated dialogues with Malaysia, Indonesia and Thailand.
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Published on August 25, 2025
