Sep 13, 2014: The shipping ministry will apply the model concession agreement (MCA) for state ports (those owned by the state governments) prepared by the Planning Commission earlier this year at the two new greenfield ports planned by the Union government at Sagar Island in West Bengal and Dugarajapatnam in Andhra Pradesh, involving a combined investment of Rs.15,800 crore. “The model concession agreement currently followed by the major ports (those owned by the Union government) is for setting up individual berths and terminals within a major port.

Whereas, the MCA for state ports is better suited for developing greenfield ports and we will use that for the Sagar Island and Dugarajapatnam port projects,” a spokesman for the shipping ministry in Delhi said. The Planning Commission had finalized the so-called MCA for ports outside the control of the Union government, as such a document was found necessary when the state governments seek and avail of viabiliy gap funding (VGF) from the central government for new port projects.

The two new ports will be set up as companies and function as landlord ports, a model for developing ports wherein the land and waterfront infrastructure is owned by the government-controlled company which are given on lease to private firms who put up and maintain their own super structure and install their own equipment to handle cargo

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