India simplifies port investment rules
India’s convoluted port bidding process has long stymied investments in the sector with many of the biggest names in global terminal operations often thwarted from taking concessions in the world’s largest democracy due to arcane rules. The government has finally got around to fixing the issue with the shipping ministry yesterday unveiling a new model concession agreement (MCA) in a bid to attract more private sector investments.
The new proposals claim to have a more equitable allocation of project risks, as well as removing the ambiguity of existing provisions and allow investors to exit after a shorter period of time if they want to.
The proposals have been posted on the ministry’s website and officials are looking for comments on them before they are promulgated.