The Empowered Inter-Ministerial Group constituted by the Cabinet
Committee on Infrastructure vide office memorandum dated
April 30, 2014 has approved the MTA, for take-out financing of
Public Private Partnership ("PPP")
projects in the Ports Sector.
The said approval can be termed as a parting gift by the
outgoing government. Though, currently it is applicable to only
major ports but being based on a model concession agreement for the
private sector projects in major ports, it is touted to be a major
advancement for low cost and longer tenure financing in the port
sector.
The MTA empowers Infrastructure Debt Funds
("IDF") to take over loans extended to
developers of major port projects for financing of such projects.
If a project whose debt service obligations have not been waived,
rescheduled, etc. but has completed one year of commercial
operations, the project developer would be permitted to issue bonds
in accordance with the MTA.
