“It was a long pending dispute and we are happy that after prolonged negotiations, a settlement has finally been reached with entities who signed the first PPP in India. The damage was done way back in 2005. As per this settlement, NSICT can get ₹705 crore as volume-based royalty discounts until the remaining period of the concession. This is a win-win situation for both of us as our royalty will remain intact, and more volumes will fetch NSICT greater royalty discounts. NSICT has magnanimously accepted this formula,” Unmesh Wagh, Chairman of JNPA said. The concession period expires on 2027-28.
Broadly the agreement will involve additional cargo commitment by NSICT which will enable them to become eligible for volume discounts which will kick in once the volumes touch certain levels. Given that the volumes had gone down to more than half of what they were prior to the tariff dispute this is expected to result in substantial increase in cargo volumes. “This settlement will add a minimum of six lakh TEUs to JNPA’s annual cargo volumes,” Wagh said, adding that JNPA expected the terminal to operate at 100 per cent capacity after this settlement.
