Jawaharlal Nehru Port Authority (JNPA) and Bharat Mumbai Container Terminals Pvt. Ltd. (BMCTPL), a unit of Singapore’s PSA International, have reached a settlement in a long-standing dispute over the concession agreement for the container terminal at JN Port.
Under the agreement, the concession period will be extended by 1,173 days beyond the original 30-year term ending December 22, 2044. The new expiry date is now set for March 8, 2048.
The Conciliation and Settlement Committee (CSC), an alternative dispute resolution mechanism for major ports, rejected BMCTPL’s ₹4,044.8 crore damages claim against JNPA. BMCTPL had alleged delays in the commencement and construction of Phase 2 were attributable to JNPA. The CSC ruled the delays were the result of force majeure events and not the port authority’s actions. As a result, all monetary claims were dropped, with only an extension of the concession period granted.
As part of the settlement, BMCTPL will refund JNPA ₹9.49 crore—₹5.98 crore for a connecting road near Nhava Sheva Police Station and NH 4B, and ₹3.51 crore for the ‘Chicane Road,’ along with ₹3.40 crore in interest—within 15 days of signing the agreement.
The JNPA Board has approved the settlement in principle, and the supplementary agreement amending the original May 6, 2014, concession pact will be signed within a week, JNPA Chairman Unmesh Wagh said.
BMCTPL is a wholly owned subsidiary of PSA Bharat Investment Pte. Ltd., itself part of PSA International Pte. Ltd., owned by Singapore’s sovereign wealth fund.
