Govt finalises policy to deal with stressed PPP projects at major ports
As per the resolution mechanism framed by ministry of shipping and ports, in case of projects which became stressed during construction stage, the Concessioning Authority would pay to the Concessionaire or to the lenders of the Concessionaire (as the case may be), as full and final settlement for taking over the useful assets created by the Concessionaire.
For projects which became stressed due to borrowings being categorized by the lenders to the projects as NPA and/ or lenders have approached NCLT for recovery of their dues, (both in construction stage or after competition of the project), the due process before the NCLT under the Insolvency and Bankruptcy Code 2016 or under Section 241(2) of the Companies Act 2013 will be followed.
Commenting on the guidelines, Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, said, “These Guidelines will facilitate for early resolution of various issues and revival of stressed projects along with unlocking the immense potential of those projects resulting in creation of more trade and job opportunities."
As per official documents, the port asset is likely to be put to use through re-bidding which will result in unlocking the blocked cargo handling capacity of approximately 27 million tonne per annum (MTPA) and create better trade opportunities for prospective investors and port authority will start generating revenue.
In the past decade, the Centre had invited private investment into the major ports sector and several projects were awarded under design, built, finance, operate and transfer (DBFOT) basis across major ports in the country.
Currently, 34 major ports of over ₹27,000 crore are operational and 25 projects of ₹14,000 crore are under implementation. The operational projects have added capacity of around 350 MTPA at major ports. Under asset monetisation, 31 projects of ₹14,500 crore are to be awarded by 2025.