INDIRA CONTAINER TERMINAL PRIVATELIMITED (ICTPL)
    MUMBAI OFFSHORE CONTAINER TERMINAL IN MUMBAI HARBOUR

This is the first and single largest container privatization project at the Mumbai Port. ICTPL Project involves construction, financing, equipping, operations and management of the Offshore Container Terminal (OCT), comprising at least two berths in the Mumbai Harbour on a BOT basis.

The client is Mumbai Port Trust (MbPT).

The partners in the SPV are AJRITL (formerly Gammon Infrastructure Projects Limited) and Noatum Ports Sociedad Limitada (formerly Dragados S.P.L.) (one of the largest port operators of Spain and a part of the A.C.S. Group, one of the largest infrastructure conglomerates in the world).

The license period is 30 years including 3 years of construction and equipping period.

As per the License Agreement, both MbPT and ICTPL were required to fulfill obligations to ensure that the OCT Project commences operations within 3 years of date of award of the License. However, MbPT did not fulfill its obligations of completing even the critical activities of capital dredging, filling of Prince’s and Victoria Docks, permission for procuring equipment and other facilities for enabling ICTPL to complete its share of obligations and commence operations from the OCT Project.

As the delay in commencing the operations were beyond the limits set by Reserve Bank of India, the Lenders classified the account as Non-Performing Asset. As a result the Lenders halted further disbursals of loans resulting in the construction work coming to a complete standstill.

After much discussions with MbPT, ICTPL was allowed to handle Roll On and Roll Off (RORO) vessels and steel cargo vessels from its OCT Project terminal from July 21, 2015 on alternative interim basis. The Gross Revenue earned from these interim alternative operations was shared between MbPT, ICTPL and Lenders in the ratio of 55:20:25.

ICTPL has initiated a fresh attempt to resolve and revive the stalled Project. A One-Time Settlement proposal has been submitted by ICTPL to its Lenders and the same is under consideration by the Lenders.

MbPT has approached ICTPL to settle all the disputes which are pending for adjudication by the Arbitral Tribunal. ICTPL has agreed to participate in the conciliation process subject to the condition that the same would be completed in a time bound manner.