At the roadshow of the 3rd Global Maritime India Summit 2023, Subrat Tripathy, CEO (Ports), Adani Ports and Special Economic Zone (SEZ), emphasised the need for an “extended” concession period of at least 50 years and a comprehensive dispute resolution mechanism in the PPP model in infrastructure projects. The suggestions made by him were in sync with the ongoing discussions aimed at bolstering India’s maritime infrastructure and attracting significant global investments.
“I want to highlight to the Minister and the offices of the Ministry of Shipping that a 30-year concession period may not be adequate. The new concession regime already recognises the ability to roll over, but I believe that a 50-year concession period would be more beneficial,” Tripathy said.
This would provide a greater incentive for investors to come forward and ensure that adequate revenues are met, he said.
“It would also help mitigate the risk of the capital expenditure cycle being threatened towards the end of a concession period,” Tripathy said in his address.
He lauded the West Bengal government’s initiative in providing a 99-year concession period for the development of the Tajpur deep sea port in the state.
Adani Port has won the contract to build and operate the port in the state.
Tripathy also underscored the significance of incorporating a robust dispute resolution mechanism and exit policies within the concession agreements.
Such provisions would create an atmosphere of transparency and reliability, fostering investor trust, he said.
Adani Port officials said that the company remains committed to the Tajpur project and was waiting for a Letter of Agreement from the West Bengal government before it can proceed with feasibility studies and environmental clearances.
The state government needs to get security and some other clearances before it could award the final agreement.
