Context: Union Minister of State for Shipping launched ‘SAROD-Ports’ (Society for Affordable Redressal of Disputes - Ports).
Backgrounder:
The Union Cabinet chaired by Prime Minister had approved amendments in the Model Concession Agreement (MCA) in January,2018.
The amendments in the MCA, envisaged constitution SAROD-PORTS as dispute resolution mechanism for PPP Projects in the Major Ports.
SAROD-Ports
It is established under Societies Registration Act, 1860 with the following objectives:
Affordable and timely resolution of disputes in fair manner
Enrichment of Dispute Resolution Mechanism with the panel of technical experts as arbitrators.
SAROD-Ports consists members from Indian Ports Association (IPA) and Indian Private Ports and Terminals Association (IPTTA).
SAROD-Ports Benefits:
It will become the pivotal mechanism of ummeed (hope), vishwas(trust) and nyaya (justice) in the Port sector of India.
SAROD-Ports will resolve the disputes in fair and just manner while saving huge amount of legal expenditure and time.
SAROD-Ports will inspire confidence in the private players and will ensure right kind of environment for our partners.
It will promote ease of doing business in the maritime sector because of the fast, timely, cost effective and robust dispute resolution mechanism.
SAROD-Ports will advise and assist in settlement of disputes through arbitrations in the maritime sector, including ports and shipping sector in Major Port Trusts, Non-major Ports, including private ports, jetties, terminals and harbours.
It will also cover disputes between granting authority and Licensee/Concessionaire /Contractor and also disputes between Licensee/Concessionaire and their contractors arising out of and during the course of execution of various contracts.
‘SAROD-Ports’ is similar to provision available in Highway Sector in the form of SAROD-Roads constituted by NHAI.