Kolkata: Marking its maiden foray into Public Private Partnership (PPP) model, the Inland Waterways Authority of India (IWAI) on Tuesday handed over equipping, operation and management of its terminals to a private firm on a supply, operate and maintain mode.
The (IWT) terminals GR Jetty I and BISN and GR Jetty-II were handed over on a revenue-sharing model to the firm Summit Alliance Port East Gateway (India) APrivate Limited (SAPEL).
The handing over ceremony took place in the presence of Union shipping secretary Gopal Krishna and AIWAI chairman Pravir Pandey.
Gopal Krishna said the PPP model was highly successful in port sector of India, and averred that the central government would provide support to all stakeholders in the shipping sector.
He called for more investment in the sector.
Referring to the PPP model that has been started, Pandey said, it has been experienced world over that operation and maintenance of ports and terminals are better performed by private enterprises who form more successful business models.
He spoke about Jal Marg Vikas Project under which multi-modal hubs are being developed at Varanasi, Sahebgunj and Haldia on NW-I.
The terminal service agreement was signed between IWAI and SAPEL on April 26, 2018, for equipping, operating and managing inland water transport at Garden Reach Terminal in Kolkata and Gaighat and Kolughat terminal in Patna of National Waterway-1 for a period of 30 years on revenue sharing basis.
The operator will have the right to collect user fees as per tariff rates notified by IWAI.
As per the revenue sharing arrangement, SAPEL would get 61.7 per cent and IWAI 38.3 per cent.
Summit Alliance Port East Gateway (India) is the subsidiary company of Summit Alliance Port Limited (SAPL), which was founded by Summit Group and Alliance Group.