Market-linked tariff for PPP port projects
The Hindu
Projects under public-private partnerships (PPP) at major ports will be able to now determine tariffs in accordance with market dynamics, according to new tariff guidelines unveiled by the Union Minis
Projects under public-private partnerships (PPP) at major ports will be able to now determine tariffs in accordance with market dynamics, according to new tariff guidelines unveiled by the Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal on Wednesday.
The move was necessitated after the new Major Port Authority Act, 2021 came into effect from November 3. “Currently, major ports’ PPP concessionaires handle around 50% of the total traffic handled by all the major ports in India. The biggest benefit of transition to market-linked tariff is that a level playing field will be provided to the PPP concessionaires at major ports to compete with private ports,” said a Ministry statement.
These new guidelines will be applicable for future PPP projects, including projects which are currently under the bidding stage.