On an offer of the highest revenue share of 50.8%, the government gave the letter of award to the consortium of Singapore’s PSA International Private Limited and ABG Ports Private Limited on 26 September, 2011 to build a new container terminal at Jawaharlal Nehru Port near Mumbai. But as of now, nothing has happened since the concession agreement that details out the terms and conditions of the contract has not been signed by ABG. Having waited till now, the shipping ministry wants to ascertain in the final response whether ABG-PSA want to proceed with the project or not. Earlier in July, the ministry had pointed out to ABG that it could not withdraw from the consortium. Mr.K.Mohandas,former shipping secretary observed commenting on the highest revenue share: “ Such high revenue could become an uncomfortable arrangement between two parties. It takes away the scope to reduce tariff and affects the overall trade”. It is pointed out that the concession agreement could not be materialized for two reasons: a) ABG wanted to withdraw from the project b) PSA was not for sharing the INR 50 crore stamp duties for the agreement.
Sunday, 26 August 2012
ABG-PSA appear to back out on JNPT container terminal
On an offer of the highest revenue share of 50.8%, the government gave the letter of award to the consortium of Singapore’s PSA International Private Limited and ABG Ports Private Limited on 26 September, 2011 to build a new container terminal at Jawaharlal Nehru Port near Mumbai. But as of now, nothing has happened since the concession agreement that details out the terms and conditions of the contract has not been signed by ABG. Having waited till now, the shipping ministry wants to ascertain in the final response whether ABG-PSA want to proceed with the project or not. Earlier in July, the ministry had pointed out to ABG that it could not withdraw from the consortium. Mr.K.Mohandas,former shipping secretary observed commenting on the highest revenue share: “ Such high revenue could become an uncomfortable arrangement between two parties. It takes away the scope to reduce tariff and affects the overall trade”. It is pointed out that the concession agreement could not be materialized for two reasons: a) ABG wanted to withdraw from the project b) PSA was not for sharing the INR 50 crore stamp duties for the agreement.
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