Indian Ports Association

Guidelines for Joint Venture

Joint Venture between a Major Port and Foreign Ports

• Areas of Participation

  1. Construction of new port facilities within the existing port.

  2. Improving productivity of an existing port facility by upgrading and/or improving managerial practices (entire terminal meant for a particular comnod1ty could be given for running it as a common user facility), and/or

  3. Development of a new port.

  4. Any combination of (1) to (3) above.

• Selection Procedure

  1. Major Port Trust(MPT) will identify the areas(s) in which Joint Ventures is to be formed, or proposal could be made by foreign port for consideration by MPT

  2. The Foreign Port(s) should have proven capability in the identified area(s).

  3. Financial Participation, Revenue Sharing end the terms of participation will be negotiated.
      

• Entity for Implementation

The Foreign Port(s) may implement the Scheme by promoting Indian Company in the form of Special Purpose Vehicle(SPV), without equity contribution from Major Port Trust; or 

1. A Joint Venture Company(JVC) may be incorporated under the Indian Companies Act with equity participation from Major Port Trust. The Major Port Trust will, at all time, maintain a controlling stake in the JVC necessary for bloking a Special Resolution.

• Form of Contributions by Major Ports

1. Financial 
2. Making available port assets at agreed terms. 
3.  Agreeing to provide services such as experts, 

water front, pilotage, conservancy, and safety, in lieu of agreed terms and return over the period of collaboration. (4) Any combination of (1) to (3) above,

•  Form and Period of Collaboration:

Period will be upto 30 years.

1. Form of collaboration will be on B.O.T. basis. Upon expiry of the period, the port related assets will revert back to the Major Port Trust in accordance with conditions of Agreement.

• Other conditions:

  1. The Joint Venture arrangements can be finalised without tender.

  2. The Joint Venture will require approval from Central Government.
      

•  Definition of Foreign Port
  For the purpose of the guidelines contained in sub-para 3.l, a Foreign Port means a Public owned Port located outside India and does not include a Port owned exclusively by a Private Company