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New Delhi, Sept 21: The model concession agreement (MCA) for ports is yet to see the light of day. According to official sources, finalisation of the MCA is getting delayed due to a tussle between the shipping ministry and the Planning Commission over setting of tariff.
Sources in the Plan panel said the shipping ministry wanted to continue with the current cost-plus model for tariff.
But the Commission was critical of the model which, it believed, did not provide any incentive to private players to cut costs. Instead, the Commission said, tariff could be fixed through bidding, as in the case of road sector. Alternatively, tariffs could be set every five years by a regulator who would fix a price cap.
A Plan panel official said, "Internationally, the cost plus system has proven to be highly ineffective and we should opt for another model."
The Plan panel, sources said, was keen to have an MCA for ports similar to what was already there for the road sector. However, the shipping ministry was not keen on this as it felt that roads and ports were two completely different sectors and, therefore, should be dealt differently.
