| How is the royalty rate expressed in the bidding process? | Rupees per Metric Ton/Twenty Feet Equivalent Unit (TEU) | The procedures as laid down by the Government of India from time to time for appraisal and approval of PPP projects will be followed after making suitable modifications in the eligibility criteria for participation in the bidding for the Facility. 13. Earnest Money Deposit (EMD) to the tune of 10% of the estimated project cost may normally be adopted by the Port Authority to discourage frivolous bidding. Selection of the successful bidder will be made on the basis of the royalty rate to be quoted by the bidders. The royalty rate will be the bidding criteria and is to be expressed as Rupees per Metric Ton/Twenty Feet Equivalent Unit (TEU). 14. The Major Port Authority shall fix a reserve price for royalty per Metric Ton/TEU for the project by considering the following factors: 14. | 590 | definition | 1.000 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | The royalty rate will be the bidding criteria and is to be expressed as Rupees per Metric Ton/Twenty Feet Equivalent Unit (TEU). | 6 | page=6,block=1 | 0.700 | valid |
| What does 'Designed Capacity' refer to in the context of the policy? | the capacity of the envisaged Facility as indicated in the Feasibility Report prepared for the Facility and accepted by the Major Port Authority concerned | (ii) “Concessionaire” for the purpose of this policy shall mean the PDI who has entered into a concession with the Major Port Authority for a fixed period through a concession agreement. For the purpose of extension and renewal, the existing Concessionaires, covered under the previous policies of 1996/1998 and 2016, shall also qualify as Concessionaire. (iii) ‘‘Designed Capacity’’ means the capacity of the envisaged Facility as indicated in the Feasibility Report prepared for the Facility and accepted by the Major Port Authority concerned. | 390 | definition | 1.000 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | (iii) ‘‘Designed Capacity’’ means the capacity of the envisaged Facility as indicated in the Feasibility Report prepared for the Facility and accepted by the Major Port Authority concerned. | 4 | page=4,block=1 | 0.700 | valid |
| What does the term 'Minimum Guaranteed Cargo' refer to? | the minimum cargo handling levels for a Facility fixed in terms of this Policy | (vii) “Minimum Guaranteed Cargo” means the minimum cargo handling levels for a Facility fixed in terms of this Policy; (viii) “Policy” means the policy for 'Award of Waterfront and Associated Land to Port Dependent Industries in Major Ports (Captive Policy)’ as set out in this document; (ix) “Port Dependent Industry” (PDI) for the purpose of this policy means, with reference to a particular Major Port, any entity (including any of its Affiliates) which is dependent on that Major Port for import and/or export of at least 70% of the Designed Capacity of the proposed Facility for Captive Cargo. Such entity includes a Special Economic Zone (SEZ) and Free Trade Warehousing Zone (FTWZ) established under the SEZ Act. | 39 | definition | 1.000 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | (vii) “Minimum Guaranteed Cargo” means the minimum cargo handling levels for a Facility fixed in terms of this Policy; (viii) “Policy” means the policy for 'Award of Waterfront and Associated Land to Port Dependent Industries in Major Ports (Captive Policy)’ as set out in this document; (ix) “Port Dependent Industry” (PDI) for the purpose of this policy means, with reference to a particular Major Port, any entity (including any of its Affiliates) which is dependent on that Major Port for import and/or export of at least 70% of the Designed Capacity of the proposed Facility for Captive Cargo. |
| What is the purpose of Public-Private-Partnerships (PPPs) as envisaged by the Government of India? | harnessing private sector investment and operational efficiencies in the provision of public utilities and services | Background 1. The Government of India is committed to improve the level and quality of physical and social infrastructure in the country in pursuit of its goal of achieving national economic prosperity. In pursuance of this goal, the Government has envisaged a substantial role for Public-Private-Partnerships (PPPs) as a means for harnessing private sector investment and operational efficiencies in the provision of public utilities and services. Award of waterfront and associated land to Port Dependent Industries on PPP/captive basis is one of the areas which has been identified for participation/investment by the private sector in Major Ports. 2. | 332 | definition | 1.000 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | In pursuance of this goal, the Government has envisaged a substantial role for Public-Private-Partnerships (PPPs) as a means for harnessing private sector investment and operational efficiencies in the provision of public utilities and services. | 1 | page=1,block=3 |
| What restriction was imposed by the rigid definition of 'Port Based Industries'? | restricted the use of the captive facility for handling of captive cargo only and did not allow for handling of any other third party cargo | (iii) Rigid definition of ‘Port Based Industries’ restricted the use of the captive facility for handling of captive cargo only and did not allow for handling of any other third party cargo in the captive facility. Though some captive facility project related agreements have a provision for use of idle capacity of the captive berths, in majority of the agreements there is no such provision. many captive berths allotted under the guidelines of 1996 and 1998 could achieve capacity utilization of only around 50% or less and the available spare capacities remained un-utilized due to restriction on handling of third party cargo. 4. Accordingly, to address the shortcomings of the 1996/1998 guidelines, as brought out above, the Captive Policy of 2016 was formulated. | 50 | definition | 1.000 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | (iii) Rigid definition of ‘Port Based Industries’ restricted the use of the captive facility for handling of captive cargo only and did not allow for handling of any other third party cargo in the captive facility. |
| What does the term 'Waterfront' refer to? | the land facing water which can be used for construction of berths, jetties and other cargo handling facility. | (xi) Terms not specifically defined in this document, unless the context otherwise requires, shall have the same meaning assigned/ ascribed to them in the Model Concession Agreement (MCA) for Private Sector Projects in Major Ports issued by the Ministry of Ports, Shipping & Waterways. (xii) “Waterfront” means the land facing water which can be used for construction of berths, jetties and other cargo handling facility. (xiii) “Associated land” means land associated with the waterfront which can be made available for facilitating operations at captive berth for example backup area, storage area etc. Methodology 10. | 311 | definition | 0.980 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | (xii) “Waterfront” means the land facing water which can be used for construction of berths, jetties and other cargo handling facility. (xiii) “Associated land” means land associated with the waterfront which can be made available for facilitating operations at captive berth for example backup area, storage area etc. | 5 | page=5,block=1 |
| What is the meaning of 'Associated land'? | land associated with the waterfront which can be made available for facilitating operations at captive berth for example backup area, storage area etc. | (xi) Terms not specifically defined in this document, unless the context otherwise requires, shall have the same meaning assigned/ ascribed to them in the Model Concession Agreement (MCA) for Private Sector Projects in Major Ports issued by the Ministry of Ports, Shipping & Waterways. (xii) “Waterfront” means the land facing water which can be used for construction of berths, jetties and other cargo handling facility. (xiii) “Associated land” means land associated with the waterfront which can be made available for facilitating operations at captive berth for example backup area, storage area etc. Methodology 10. | 453 | definition | 0.980 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | (xiii) “Associated land” means land associated with the waterfront which can be made available for facilitating operations at captive berth for example backup area, storage area etc. Methodology 10. | 5 | page=5,block=1 | 0.700 | valid |
| What condition allows the Major Port Authority to award waterfront and associated land to Government bodies without a tender? | at reserve price without recourse to tender, after incorporating appropriate safeguards and subject to availability of waterfront and associated land | For the Government bodies qualifying as Port Dependent Industry (PDI) from Fertilizer, Food, Oil, Petroleum and Gas, Coal and Steel or any other sector as notified by the Ministry of Ports, Shipping and Waterways from time to time, as defined under Note-2 of Clause-9, the Major Port Authority may award fresh concession of the Port’s waterfront and associated land, or extend/renew existing captive user's concession agreement, at reserve price without recourse to tender, after incorporating appropriate safeguards and subject to availability of waterfront and associated land. | 429 | relationship | 0.970 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | For the Government bodies qualifying as Port Dependent Industry (PDI) from Fertilizer, Food, Oil, Petroleum and Gas, Coal and Steel or any other sector as notified by the Ministry of Ports, Shipping and Waterways from time to time, as defined under Note-2 of Clause-9, the Major Port Authority may award fresh concession of the Port’s waterfront and associated land, or extend/renew existing captive user's concession agreement, at reserve price without recourse to tender, after incorporating appropriate safeguards and subject to availability of waterfront and associated land. |
| What constitutes an Adverse Impact if there is a more than 25% drop in EBITDA or a more than 20% increase in capital expenditure? | change in law and unforeseen events | laws, changes in tax rates, or judicial interpretations occurring after the Bid Date. Unforeseen events will only trigger after seven years of COD. If either or both situations i.e. change in law and unforeseen events resulting more than 25% EBITDA drop, more than 20% increase in capital expenditure, or makes construction unviable, it constitutes an Adverse Impact. In cases | 182 | relationship | 0.970 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | If either or both situations i.e. change in law and unforeseen events resulting more than 25% EBITDA drop, more than 20% increase in capital expenditure, or makes construction unviable, it constitutes an Adverse Impact. | 9 | page=9,block=31 | 0.700 | valid |
| What determines the reserve price for royalty per Metric Ton/TEU when the Major Port Authority has invested in infrastructure? | a fair rate of return on investment through the projected cargo volumes | 14. Any other relevant factor to be decided by the Major Port Authority. 15. Reserve price is to be ascertained based on whether the concessionaire is investing or the Major Port Authority has invested in developing the berth or related infrastructure. In case the Major Port Authority has invested in developing the berth or related infrastructure, the reserve price should ensure a fair rate of return on investment through the projected cargo volumes. 16. Bid offers which are below the Reserve price fixed by the Major Port Authority shall be rejected. 17. The bidder from amongst those whose offer is either equal to or above the reserve price and who offers the highest royalty rate for the Facility to the Major Port Authority will be declared as the selected bidder. Single bid may also be considered if they are equal to or above the reserve level royalty rate. 18. | 382 | relationship | 0.970 | https://www.shipmin.gov.in/sites/default/files/Captive%20Policy%202026_0.pdf | In case the Major Port Authority has invested in developing the berth or related infrastructure, the reserve price should ensure a fair rate of return on investment through the projected cargo volumes. |