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BUILD-OWN-OPERATE-TRANSFER (BOOT)
PRINCIPLES UNDER PORT POLICY - 1995
GOVERNMENT OF GUJARAT
Ports & Fisheries Department
Resolution No.WKS-1097-G-213-GH
Sachivalaya, Gandhinagar
Dated : 29th July, 1997
RESOLUTION
The Government of Gujarat has in December, 1995 announced the Port Policy, which integrates the development of ports with industrial development, power generation and infrastructure development. The policy envisages development of ten green-field ports, six of them as fully private and four as joint sector ports. The Gujarat Maritime Board will act as Co-ordinating Agency in the implementation of this policy. The Government has already initiated Detailed Project Report-Pre-Feasibility Studies for these sites. The Government is hereby pleased to announce package of BOOT principles as a next action of the Government. The BOOT principles will serve as a framework for involvement of private sector in the construction and operation of these new ports. The BOOT principles have been formulated for the operation of new private and joint sector ports in Gujarat as announced in the Port Policy, 1995.
The Guiding Principles for BOOT package and BOOT principles are annexed herewith as Annexure-A and B respectively.
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This issues with concurrence of Finance Department on this Department's File of even number.
By order and in the name of Governor of Gujarat.
Vagmin Buch
Joint Secretary
Ports & Fisheries Department
Government of Gujarat
To:
The Secretary to the Hon'ble Governor of Guj., Raj Bhavan, Gandhinagar. (By letter).
The Principal Secretary to the Hon'ble Chief; Minister, Sachivalaya, Gandhinagar.
All PSs TO Ministers/Ministers of State/Dy.Ministers, Sachivalaya, Gandhinagar.
The PS to Chief Secretary, Sachivalaya, Gandhinagar.
The Chairman, Gujarat Maritime Board, Ahmedabad.
The Vice Chairman & Chief Executive Officer, GMB, Ahmedabad.
The Accountant General, Ahmedabad/Rajkot.
All Departments of the Secretariat.
The Select file.
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ANNEXURE - A
Annexure to P & FD GR NO.WKS-1097-G-213-GH Date 29th July, 1997
GUIDING PRINCIPLES FOR BOOT PACKAGE
The following guiding principles have been the basis; for framing the Build, own, Operate & Transfer (BOOT) Package.
(1) TIMELINESS OF INFRASTRUCTURE CREATION
It is necessary that the package creates an environment, which facilitates the timely creation of envisaged port facilities
(2) EFFICIENCY OF OPERATIONS AND OPERATIONAL AUTONOMY TO PRIVATE SECTOR
The Government desires that the new ports be operated at International standards of performance and efficiency and the waterfront is optimally utilized. To facilitate this, the developer would be provided with a high degree of operational freedom. At the same time, the new ports would be required to operate in a commercial and market driven environments, so that competition and efficiency is encouraged.
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(3) SYNCHRONISATION WITH HINTERLAND DEVELOPMENT
The new port facilities would reflect the changing requirement of hinterland, i.e. facilities and capacity for the right type of cargo and right quantum should be created. It is intended that the new ports become hubs of industrial activity and serve as catalysts for economic growth in the region. The development of new port will be phased in synchronization with current and future investments in the area.
(4) MAINTAIN GOVERNMENT ROLE ONLY IN APPRROPRIATE AREAS
Since the ports are of strategic importance to the State, the Government has to ensure that the key interests in security, defence, environment and economic development are safeguarded. However, as a principle, the role of Government will be limited to areas where it is necessary and appropriate. Government and user interest would be protected by establishing a suitable regulatory framework.
(5) KEPT AT A MINIMUM
The Ports are to be developed as commercially viable entities capable of operating without Government support. Given the commercial nature of port operations, their recourse to the Government would be kept to minimum and responsibility of financing the port will rest with the developer.
Government will grant licence/concession to private developer to build, own, operate and manage port facilities for a specific period. The Government will permit; the developer to create a mortgage/hypothecation of real estate as a security for lenders to the project. This permission will be limited to BOOT period, after which the assets will be transferred back to the Government. The ownership of the land and waterfront will always vest with the Government.
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Privatization
