Indian Ports Association - Private Participation GUIDE

Guidelines to be followed by Major Port Trust for private participation in the major ports

Check List

CAPTIVE FACILITIES REQUIREMENT IN MAJOR PORTS

Whether the concerned Administrative Ministry of the port based industry are fully satisfied with the need for captive jetty.
Whether the administrative Ministry concerned is satisfied that there is adequate justification for the case not being processed through tender route.
Whether the applicant company is technically and financially sound and has the track record/company profile for executing the project and captive jetty for which application has been made, and whether they are in a position to tie up adequate resources for the main project plus captive jetty.
The applicant company must be a port specific industry and not a trading house/trading PSU. The definition of "industry" would mean and include, inter-alia, that raw material/inputs must be convened by value addition to different products.
The port should examine whether economies of scale have been taken care of in the proposal and whether the proposed captive berth/jetty would handle cargo not less than cargo handled on an equivalent berth of the port.
In case of joint ventures, whether the major shareholders satisfy the conditions of technical and financial capabilities, capabilities to raise adequate resources, experience and track record etc.
The percentage utilisation of the berth for the captive cargo, as calculated by number of days in a year the berth is used for captive purposes. On any day, for some reason, if the entrepreneur is unable co use the berth for his own captive cargo, it may be used by the port or other users in terms of conditions in the MOU with Port Trust Board.
Whether feasibility report has been made/proposed to be made by the entrepreneur for captive facility. If already made, whether this feasibility report has been seen/scrutinised by the Port to see whether it meets the port’s approval.
Whether there is any conflict between the proposed captive facilities and the Master Plan of the Port.
Whether port has calculated maximum realisation taking into account all relevant factors.
The applicant company should accept all the contractual conditions and provide the performance guarantees that would be applicable in BOT agreements.
In addition, whether the case meets the requirement of the guidelines dated 26.10.1996 on private sector participation.