MUMBAI: Essar Ports, MD & CEO Mr. Rajiv Agarwal has supported the recent circular issued by the Shipping Ministry providing relief to port users by saying, “the new circular issued by Ministry of Shipping is a positive move in strengthening the sector and ensures equitable sharing of risks.

  “In the wake of such an unprecedented situation, Ministry of Shipping has been proactive in ensuring the relief is passed onto the stakeholders including end customers and Concessionaires.  The relief measures will enable much required liquidity in the system and ease out the cash flow situation which stakeholders are facing on account of disruption in supply chains due to COVID-19.”

Key Takeaways from the Circular

1. Allotment of additional land for storage to accommodate the need of Port users which are facing issue with respect to movement of cargo

2. Waiver of any penal charges to Port Users on account of delay due to delay in loading/ unloading or evacuation/ arrival of cargo in the Port

3. Deferment with respect to payment of Vessel Related charges by Shipping Lines – a welcome relief

4. Deferment of revenue share and royalty to be paid by Concessionaire during impacted period to address the cashflow constraint

5. Waiver on lease rentals & license fees to the extent of loss of Business to address the business impacted on account of supply chain disruptions

6. Extension of project duration and waiver of consequences on account of delay in execution to the extent on account of COVID-19.