MoS proposes new model concession agreement for port sector

The Ministry of Shipping (MoS) has proposed a new model concession agreement (MCA) for the port sector to replace the present MCA, which came into existence in January 2008. The proposed MCA has taken into account suggestions made in various reports by the Planning Commission (now known as NITI Aayog) (2010) the Indian Ports Association (2015) and the Kelkar Committee (2015). The revised MCA has proposed that the concessionaire hold 51 per cent equity for three years after commercial operation date (COD) and 26 per cent thereafter for another three years. The agreement has a provision for a mid-term review of the concession agreement.