Adani Ports for minimum 50yrs of concession period

16 Aug 2023 CW Team

On Monday, Adani Ports and Special Economic Zone (SEZ) emphasized the necessity for a Public-Private Partnership (PPP) model in infrastructure projects that included a "extended" concession duration of at least 50 years and a thorough dispute resolution process.

The recommendations made by Adani Ports and SEZ CEO (Ports) Subrat Tripathy at the 3rd Global Maritime India Summit 2023 roadshow here were in line with the ongoing discussions intended to strengthen India's maritime infrastructure and draw sizeable foreign investments. "I want to emphasize that a 30-year concession period could not be sufficient to the minister and the offices of the Ministry of Shipping for both shipping and. A 50-year concession period would be more advantageous, according to Tripathy, even if the current concession regime already acknowledges the capacity to roll over.

This would give investors more motivation to step up and make sure that the necessary revenues are met, he continued. Tripathy stated in his talk that it would also aid in reducing the possibility of the capital expenditure cycle being threatened near the end of a concession period. He applauded the West Bengal government's initiative in offering a 99-year concession period for the state's Tajpur deep sea port's development. The state's port will be built and run by Adani Port, who won the contract.

Tripathy also emphasized the importance of including effective departure policies and dispute resolution mechanisms in the concession agreements.

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