The Ministry of Ports, Shipping and Waterways is set to unveil an improved Model Concession Agreement (MCA) for Public-Private-Partnership (PPP) projects in the sector. Shipping Secretary T.K. Ramachandran said on Monday that the revised framework incorporates all suggestions received from various stakeholders to make it more investor-friendly and globally competitive.
The MCA is a key policy document that sets out the standard terms for PPP projects, covering aspects such as allocation of risks, contingent liabilities, guarantees, service quality and performance benchmarks. The revised version is expected to provide greater clarity and comfort to both investors and port authorities, ensuring balanced risk-sharing and smoother project implementation.
Sources indicated that once the new MCA is announced, the much-delayed ₹7,000 crore outer harbour project at V.O. Chidambaranar Port (VOC Port), Thoothukudi, could be restructured under the fresh agreement. The mega container terminal project, which has seen its bidding process cancelled twice due to poor response from potential investors, may attract renewed interest if offered under improved terms.
The Shipping Secretary underlined that the new MCA is designed after extensive consultations with concessionaires, investors, and central ministries, ensuring that service quality standards and performance-based incentives are clearly built in.
According to official data, nearly 90 projects worth about ₹2 lakh crore under the government’s flagship Sagarmala Programme are expected to be executed in the PPP mode. The revised MCA will play a crucial role in unlocking these investments and accelerating port-led development across the country.
With the VOC Port’s outer harbour project seen as a vital gateway to boost India’s container handling capacity and connect southern India to global trade routes, its revival under the improved concession framework could mark a turning point for public-private participation in the maritime sector.
