Early resolution of the issues faced by PPP players essential to boost port investments: President, IPPTA
The Indian Private Ports and Terminals Association (IPPTA) held the 61st meeting of its Managing Committee on February 10, 2025.
Speaking on the occasion, Mr Devki Nandan, President, IPPTA and Chairman of Indian Maritime Centre, said: “We would like to congratulate the government for bringing a lot of policy reforms to build world class maritime infrastructure in India. However, resolution of many important issues in respect of old PPP concessionaires is pending, as whatever changes have been brought out in the Model Concession Agreement are applicable only to the new concessionaires. There has been a constant demand from IPPTA members for the existing concessionaires to migrate to market-based tariff, which is still pending for long. Industry is requesting the Ministry of Ports, Shipping & Waterways to bring an early resolution of the same.”
Emphasising the need for a proactive approach in resolving the issues, Mr Devki Nandan further stated: “PPP projects are the backbone of development of our industry, and the stress points need to be addressed with promptness. The proposed Maritime Development Fund should be made applicable to all infrastructure projects in the maritime sector. Issues like inter- and intra-port competition, absence of level playing field between existing and new concessionaires, speedy settlement of disputes, resolution of inter-ministerial issues, removal of snags in the Model Concession Agreements etc. need prompt attention. This will boost investments by the private sector to build world class port infrastructure in our country as envisaged in the Maritime India Vision 2030”.
“To the credit of the government, the present mechanism of the Conciliation and Settlement Committee (CSC) has made good progress in resolving disputes and should be encouraged further. Many PPP disputes are taken up by parties through complex court procedures and arbitration processes, whereas most of these disputes can be resolved by mutual discussions, saving in resources and time for the business. CSC is providing a platform, environment and expertise for such mutual discussions between the parties, and furthering the conciliation process to settle the dispute amicably.”
Capt. Ravinder Johal, Vice President of IPPTA, added: “IPPTA is working with the government to liberalise policies for all the PPP concessionaires, existing and new, from time to time. This will boost foreign investor confidence and attract further investments into the industry.”
Mr Senthil Kumar, Treasurer of IPPTA, voiced concerns on lack of proper operating procedures in dealing with GST matters as varying interpretations and multiple jurisdictions are causing undue harassment to the taxpayers. There is a need to streamline procedures while levying and collecting GST.
“The GSTAT has to be formed on priority. At present, after the first appeal to department officers, the taxpayer is forced to go to the High Courts which are already heavily loaded with litigation. The taxpayers are deprived of the services of fact-finding authority like the Tribunal before going to High Court. Taxpayers request steps for early formation of GSTAT to mitigate their problems… who are unnecessarily drawn into litigation for fact-finding exercise. This is essential for a good tax administration to implement the policy of the government of ease of doing business in letter and spirit and to prevent any disruption in the operations at PPP terminals,” he said.
Mr Sunay Mukerjee, COO of Gateway Terminals India, stated that “it is necessary to foster stronger communication and collaboration between government bodies and private sector stakeholders. This will ensure that PPPs align with the broader national economic strategies, such as boosting trade, supporting regional development, and advancing sustainability in critical infrastructure sectors like logistics”.
IPPTA is an association of private ports and PPP operators in the country. Prominent international and national players like JSW Infrastructure Ltd, APM Terminals, DP World, Port of Singapore Authority, J M Baxi, Vedanta, Gammon, IMC, TMILL, Bothras, DBGT are its members, informed a release.
Source: Exim News Service: Mumbai, Feb. 11