CAG finds PPP ineffective in maritime sector
PPP PROJECTS IN MAJOR PORTS PPP projects proposing a total capacity of 751.71 million tpa (see table) to major ports. Capacity of 264.69 million tpa was achieved from 35 projects completed by March 2014. Another 27 projects with capacity addition of 221.94 million tpa were under construction while 27 others with proposed capacity addition 257.97 million tpa were in the bidding stages. Two projects aggregating 6.11 million tpa were dropped.
The CAG report also quotes a number of instances where policies relating to PPP were found to be weak. In one such case, the grantor of concession, JNPT, entered into an
No. of projects
Cost (` crore)
63,712.95 Capacity (mln tpa)
751.71 agreement with Nhava Sheva International Container Terminal (NSICT) in July 1997 wherein royalty was fixed on per TEU basis which progressively increased from ` 47 per TEU to ` 2,670 per TEU in 2014-15. Due to high royalty rate, the project became progressively less remunerative to the operator and even threatened the viability of the project. It is only now, after 18 years of operation, that JNPT proposes to migrate from royalty to revenue sharing mode. NSICT, owned by DP World, represents India’s first private container terminal.
Meanwhile, under the National Maritime Develop-