B Concession Agreement 18082022 - Cuddalore Port

CONCESSION AGREEMENT
BETWEEN
TAMIL NADU MARITIME BOARD

(THE CONCESSIONING AUTHORITY)
AND
___________________________
(THE CONCESSIONAIRE)
FOR
MARKETING, OPERATION & MAINTENANCE

OF
CUDDALORE PORT FOR A PERIOD OF 30 YEARS
DATED ___________
Table of Contents
ARTICLE 1 ...................................................................................................................... 8
DEFINITIONS AND INTERPRETATION ..................................................................... 8
1.1 Definitions......................................................................................................... 8
1.2 Interpretations ................................................................................................. 14
1.3 Measurements and Arithmetic Conventions ................................................... 16
1.4 Ambiguities and Discrepancies....................................................................... 16
ARTICLE 2 .................................................................................................................... 17
SCOPE OF THE PROJECT…………………………………………………………....17
2.1 Scope of the Project…………………………………………………………...17
ARTICLE 3……………………………………………………………………………..18
CONCESSION AND PORT ASSETS ........................................................................... 18
3.1 Concession ....................................................................................................... 18
3.2 Concession Period ............................................................................................ 18
3.3 Acceptance of the Concession ......................................................................... 18
3.4 Port’s Assets..................................................................................................... 19
3.5 Use of Port’s Assets ......................................................................................... 19
3.6 Information about Project Site and Port’s Assets ............................................ 19
3.7 Acceptance of the Port Assets.......................................................................... 19
3.8 Peaceful Occupation ........................................................................................ 20
ARTICLE 4 .................................................................................................................... 21
CONDITIONS PRECEDENT ........................................................................................ 21
4.1 Conditions Precedent ....................................................................................... 21
ARTICLE 5 .................................................................................................................... 24
PERFORMANCE GUARANTEE ................................................................................. 24
5.1 Performance Guarantee ................................................................................... 24
ARTICLE 6 .................................................................................................................... 25
OPERATIONS & MAINTENANCE ............................................................................. 25
6.1 Operation & Maintenance ................................................................................ 25
6.2 Repairs and Maintenance ................................................................................. 27
6.3 Installation of Desalination and ETP Plant ...................................................... 28
6.4 Installation of Equipments…………………………………………………….28
6.5 Repairs, Replacement or Restoration ............................................................... 28
6.6 Removal / Replacement of Assets ................................................................... 28
6.7 Creation of Additional wharf / facilities .......................................................... 28
6.8 Construction of Godown / Office Space .......................................................... 29
6.9 Utilities and Services ....................................................................................... 29
6.10 Approval of Master Plan .................................................................................. 29
6.11 Payment to Concessioning Authority .............................................................. 29
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6.12 Access for Inspection ....................................................................................... 30
6.13 Submission of monthly reports ........................................................................ 30
6.14 Computer System and Network ....................................................................... 30
6.15 Security Arrangements..................................................................................... 31
6.16 Employment of Personnel ................................................................................ 31
6.17 Minimum Guaranteed Throughput (MGT) ...................................................... 31
6.18 Indemnity Against Claims for Loss of Goods ................................................. 32
6.19 Maintenance of Complaint Portal .................................................................... 33
6.20 Rights of Concessionaire ................................................................................. 33
6.21 Penalty for shortfall in performance ............................................................... 34
6.22 Levy and Recovery of the Tariff ...................................................................... 34
ARTICLE 7 .................................................................................................................... 35
PAYMENTS TO THE CONCESSIONING AUTHORITY .......................................... 35
7.1 Payment Terms ................................................................................................ 35
7.2 Collection of Cesses and Charges ................................................................... 37
7.3 Certified Accounts ........................................................................................... 37
7.4 Escrow Account .............................................................................................. 38
7.5 Penalty............................................................................................................. 39
ARTICLE 8 .................................................................................................................... 40
ASSETS: OWNERSHIP ................................................................................................ 40
8.1 Ownership of Assets ........................................................................................ 40
8.2 Assets created or provided by the Concessionaire ........................................... 40
ARTICLE 9 .................................................................................................................... 41
SHAREHOLDING ......................................................................................................... 41
9.1 Ownership Structure ........................................................................................ 41
9.2 Shareholding .................................................................................................... 41
9.3 Constituent Documents .................................................................................... 42
ARTICLE 10 .................................................................................................................. 43
GENERAL CONDITIONS ............................................................................................ 43
10.1 General Conditions .......................................................................................... 43
ARTICLE 11 .................................................................................................................. 45
GENERAL RIGHTS, DUTIES AND OBLIGATIONS ................................................ 45
11.1 Of the Concessionaire ...................................................................................... 45
11.2 Of the Concessioning Authority ...................................................................... 50
11.3 Of the Concessioning Authority and the Concessionaire ................................ 51
ARTICLE 12 .................................................................................................................. 52
CHANGE IN LAW ........................................................................................................ 52
12.1 Change in Law ................................................................................................. 52
11.2 The Concessionaire’s Remedy......................................................................... 52
ARTICLE 13 .................................................................................................................. 54
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FORCE MAJEURE ........................................................................................................ 54
13.1 Force Majeure Event ........................................................................................ 54
13.2 Non-Political Events ........................................................................................ 54
13.3 Political Events ................................................................................................ 55
13.4 Other Events..................................................................................................... 55
13.5 Notice of Force Majeure Event ........................................................................ 56
13.6 Period of Force Majeure .................................................................................. 57
13.7 Resumption of Performance ............................................................................ 57
13.8 Performance Excused....................................................................................... 57
13.9 Costs, Revised Timetable................................................................................. 58
13.10 Termination Due to Force Majeure Event.................................................... 58
ARTICLE 14 .................................................................................................................. 59
EVENTS OF DEFAULT................................................................................................ 59
14.1 Events of Default ............................................................................................. 59
14.2 Parties Rights ................................................................................................... 61
14.3 Consultation Notice ......................................................................................... 61
14.4 Remedial Process ............................................................................................. 61
14.5 Obligations during Remedial Period ................................................................ 62
14.6 Revocation of Consultation Notice .................................................................. 62
14.7 Termination due to Events of Default .............................................................. 62
14.8 Concessioning Authority’s Rights of Step-in .................................................. 62
ARTICLE 15 .................................................................................................................. 64
TERMINATION OF THE CONCESSION/AGREEMENT .......................................... 64
15.1 Termination Procedure..................................................................................... 64
15.2 Obligations during Termination Period ........................................................... 64
15.3 Requisition ....................................................................................................... 64
15.4 Condition Survey ............................................................................................. 65
15.5 Consequences of Termination.......................................................................... 66
ARTICLE 16 .................................................................................................................. 67
COMPENSATION ......................................................................................................... 67
16.1 Compensation .................................................................................................. 67
16.2 No Compensation on Expiry of Concession Period ........................................ 67
16.3 Transfer Fee and Charges ................................................................................ 67
16.4 Delayed Payment of Compensation ................................................................. 68
16.5 Delayed Transfer of Assets .............................................................................. 68
16.6 Remedies Cumulative ...................................................................................... 69
ARTICLE 17 .................................................................................................................. 70
ASSIGNMENT AND CHARGES ................................................................................. 70
17.1 Restrictions on assignment and charges .......................................................... 70
17.2 Permitted assignment and charges ................................................................... 70
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17.3 Assignment by the Authority ........................................................................... 70
ARTICLE 18 .................................................................................................................. 71
TRANSFER ON EXPIRY OF THE CONCESSION PERIOD ..................................... 71
18.1 General Scope of Transfer/Payment ................................................................ 71
18.2 Concessionaire’s Obligations........................................................................... 71
18.3 Concessioning Authority’s Obligations………………………………………72
18.4 Risk…………………………………………………………………….……..72
ARTICLE 19 .................................................................................................................. 73
DISPUTE RESOLUTION .............................................................................................. 73
19.1 Dispute Resolution Board ................................................................................ 73
19.2 Arbitration ........................................................................................................ 73
ARTICLE 20…………………………………………………………...………………74
REPRESENTATION AND WARRANTIES………………………………………….74
20.1 Representations and Warranties of the Concessionaire……………………….74
20.2 Representations and Warranties of the Concessioning Authority………...…..76
20.3 Disclosure……………………………………………………………………..76
ARTICLE 21 .................................................................................................................. 77
MISCELLANEOUS PROVISIONS .............................................................................. 77
21.1 Survival of Obligations .................................................................................... 77
21.2 Articles to survive Termination ....................................................................... 77
21.3 Joint Responsibility.......................................................................................... 77
21.4 Several Obligations .......................................................................................... 77
21.5 Severability ...................................................................................................... 77
21.6 Notices ............................................................................................................. 78
21.7 Waiver .............................................................................................................. 79
21.8 Amendments, Modifications or Alterations. .................................................... 79
21.9 Governing Law ................................................................................................ 79
21.10 Jurisdiction of the Court................................................................................... 79
21.11 Entire Agreement ............................................................................................. 79
APPENDIX 1 ................................................................................................................. 80
PROJECT SITE .......................................................................................................... 80
APPENDIX 2 ................................................................................................................. 81
PORT’S ASSETS ....................................................................................................... 81
APPENDIX 3 ................................................................................................................. 81
PROJECT REQUIREMENTS .................................................................................... 82
APPENDIX 4 ............................................................................................................... 84
CARGO CHARGES ................................................................................................. 84
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CONCESSION AGREEMENT
THIS CONCESSION AGREEMENT is made at Chennai on this the ______ day of _______
BETWEEN:
1. Tamil Nadu Maritime Board, Government of Tamil Nadu, a Statutory Board constituted
under Tamil Nadu Maritime Board Act 1995 (4 of 1996) and having its Administrative
Office at No. 171, South Kesavaperumal Puram, Off Greenways Road, Raja
Annamalaipuram, Chennai - 600 028, hereinafter referred to as “the Concessioning
Authority” (which expression shall, unless repugnant to the context or meaning thereof,
include its successors and permitted assigns) of One Part;
AND
2. _____________________ , a special purpose company incorporated under the Companies

Act, 2013, with Corporate Identity Number (CIN) ___________and having its registered
office at ………………, represented by its ………………….. authorized vide Board
Resolution dated ………………… hereinafter referred to as the “Concessionaire”
(which expression shall, unless repugnant to the context or meaning thereof, include its
successors and permitted assigns and substitutes) of the Second Part;
AND
3. ……………………….<name of Selected Bidder> having its registered office at

………………………. represented by its ………………….. authorized vide <Board
Resolution/ Power of Attorney dated …………> hereinafter referred to as the “Selected
Bidder” (which expression shall, unless repugnant to the context or meaning thereof,
include its successors and permitted assigns and substitutes) of the Third Part;
or
{The consortium of (i) M/s ………………………[…] having its registered office at
………………………, and (ii) M/s ……………………… […] having its registered office
at ………………………, in their capacity as the confirming party to this Agreement duly
represented through M/s …………, the Lead Member of the consortium, through its
Authorized signatory Mr./Ms. ………, authorized vide <Board Resolution/ Power of
Attorney dated …………> hereinafter referred to as the “Selected Bidder” (which
expression shall, unless the context otherwise requires, include its successors) of the Third
Part}
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The Authority, Concessionaire and Successful Bidder individually referred to as “Party”
and jointly as “Parties”
WHEREAS:
A. The Concessioning Authority is desirous of selecting a port operator for marketing,

operation & maintenance of the Cuddalore Port in Cuddalore District, Tamil Nadu for a
period of 30 years;
B. The Concessioning Authority vide Tender No.____________________dated ______

invited applications from the interested parties for marketing, operation & maintenance of
the Cuddalore Port;
C. In response to the invitation referred to in recital ‘B’ above, the Concessioning Authority
received the application dated _____________ submitted by the Applicant in accordance
with the tender.
D. The Concessioning Authority, after evaluating the Proposal received by it from the
Applicant, accepted the Proposal referred to in recital “C” above submitted by the
Applicant and communicated its acceptance to the Applicant vide Letter of Intent for
Award of Concession dated _____________;
E. The Applicant has incorporated the Concessionaire as a special purpose company in India,
under the Companies Act, 2013 to implement the Project;
F. Following the issue of the Letter of Intent for Award of Concession, the Concessioning
Authority has agreed to grant the Concession to the Concessionaire to take over the assets
created and carry out the marketing, operation & maintenance of the Cuddalore Port on
the terms, conditions and covenants hereinafter set forth in this Agreement.
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NOW, THIS AGREEMENT WITNESSETH AS FOLLOWS:
ARTICLE 1
DEFINITIONS AND INTERPRETATION
1.1. Definitions
In this Agreement, unless the context otherwise requires the following terms shall have the
following meanings assigned/ascribed thereto: -
“Access Channel (or Entrance Channel)” means the Entrance navigable channel duly
dredged, maintained and marked for the purpose of the project.
“Additional Auditor” has the meaning ascribed to it in Article 7.3.
“Additional Cost” means the additional capital expenditure which the Concessionaire has or
would be required to incur and which has arisen as a result of Change in Law.
“Affiliate” means, with respect to any Party and/or with respect to the Applicant and/or with
respect to any member of Consortium, any other Person directly or indirectly controlling,
controlled by or under common control with such Party, Applicant and/or member of
Consortium. For the purposes of this definition, the term “control” (including with correlative
meaning, the terms “controlled by” and “under common control with”) as applied to any Party
or Applicant or a member of Consortium, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management of that Party or Applicant or a member
of Consortium whether through ownership of 50 (fifty) % or more of the voting securities, by
contract, or otherwise.
“Agreement” means this agreement as of date hereof, including Appendices 1 through 4 as

may be amended, supplemented or modified in accordance with the provisions hereof.
“Appendix” means the schedules, supplements or documents, appended to this Agreement.
“Applicable Laws” means all laws in force and effect as of the date hereof and which may be
promulgated or brought into force and effect hereinafter in India, including statutes, rules,
regulations, directions, bye-laws, notifications, ordinances and judgments having force of law,
or any final interpretation by a Court of Law having jurisdiction over the matter in question as
may be in force and effect during the subsistence of this Agreement.
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“Applicable Permits” means any and all permissions, clearances, licenses, authorizations,
consents, no-objections, approvals and exemptions under or pursuant to any of the Applicable
Laws or from any Government Authority required in connection with the Project and for
undertaking, performing or discharging the obligations contemplated by this Agreement or any
other Transaction Document.
“Applicant” means M/s __________________.
“Application” means the Proposal and the entire set of documents submitted by the Applicant
and in response to the Tender.
“Barge” means a flat bottom boat/ vessel for transporting freight / cargo including powered or
unpowered and towed or pushed by other craft.
“Board” means Tamil Nadu Maritime Board.
“Book Value” means the aggregate written down value as on the date of issue of the
Termination Notice in the books of the Concessionaire of (i) the tangible assets (including
capital works in progress) forming part of, fixed or attached to the ground, created, installed or
provided by the Concessionaire and comprised in Project Facilities and Services, which in the
reasonable judgement of an Expert are capable of being put to use/utilized by the
Concessioning Authority, and (ii) the moveable assets including cargo handling equipment
belonging to the Concessionaire.
“Captive Use” means the use of the Barge jetty by way of captive facilities for import /export
/transportation under the Captive use policy of the Government of India.
“Change in Law” shall have the meaning set out under Article 12.1 of this Agreement.
“Charges” includes all fees and charges payable by the Concessionaire to the Concessioning
Authority, pursuant to Article 7 hereof.
“Concession” means the Concession granted by the Concessioning Authority to the

Concessionaire in accordance with the provisions of Article 3.1 of this Agreement for
implementing the Project and providing Project Facilities and Services.
“Concessioning Authority Event of Default” shall have the meaning as set out under Article
14.1 (b).
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“Concessionaire Event of Default” shall have the meaning as set out under Article 14.1 (a).
“Concession Period” means the period of the Concession specified in Article 3.2 of this
Agreement.
“Conditions Precedent” shall mean the conditions prescribed in Article 4 of this Agreement.
“Consultation Notice” has the meaning ascribed to it in Article 14.3.
“Contractor” means a Person with whom the Concessionaire has entered into/ may enter into
a contract relating to the execution of any works and /or operation and maintenance of the
Project Facilities and Services.
“Date of Award of Concession” means the date when the Conditions Precedent have either
been satisfied or waived by the Party other than the Party responsible for satisfying the same.
“Day” means the 24 (twenty four) hour period beginning and ending at 12:00 (midnight) Indian
Standard Time.
“Encumbrance” means any encumbrance such as mortgage, charge, pledge, lien,

hypothecation, security interest, assignment, privilege or priority of any kind having the effect
of security or other such obligations and shall include without limitation any designation of
loss payees or beneficiaries or any similar arrangement under any insurance policy pertaining
to the Project, physical encumbrances and encroachments on the Project Site/ Port’s Assets/
“EMD” means earnest money deposit of Rs.3,00,00,000 /- (Rupees Three Crore Only)
submitted by Applicant along with Proposal.
“Environmental Law” means any statute, rule, regulation, ordinance, code, guideline or
policy having the force of law, in each case, applicable to the Project now or hereafter in effect
and any applicable judicial or administrative interpretation, pronouncement, order, decree or
judgment, relating to the environment, health and safety.
“Escrow Account” shall have the meaning assigned to it under Article 7.4.
“Escrow Agreement” means the agreement to be executed inter alia between the
Concessionaire, Escrow Bank and the Concessioning Authority.
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“Event of Default” shall have the meaning assigned to it under Article 14.1.
“Expert” means any person, body or organization of repute with recognized technical/
professional expertise in respect of any field, matter or subject relevant for the purpose of this
Agreement.
“Financial Year” means any twelve month period commencing from 1st April and ending on
31st March.
“Force Majeure Event” shall have the meaning ascribed to it in Article 13.1 of this
Agreement.
“GoI” means the Government of India.
“Good Industry Practice” means the exercise of that degree of skill, diligence and prudence
and those practices, methods, specifications and standards of equipment, safety and
performance, as may change from time to time and which would reasonably and ordinarily be
expected to be used by a skilled and experienced operator engaged in construction, operation
and maintenance of facilities, equipment or systems of the type and size similar to the Project
Facilities and Services.
“Government Authority” means GoI, any state government or any governmental department,
commission, board, body, bureau, agency, authority, instrumentality, administrative body, at
central, state, or local level, having jurisdiction over the Concessionaire, the Port’s Assets, the
Project Facilities and Services or any portion thereof, but shall not include the Concessioning
Authority.
“Gross Revenue” shall have the meaning assigned to it under Article 7.1(g).
“Indian Accounting Standards” means the Indian accounting standards issued by the Institute
of Chartered Accountants of India.
“Insurance Cover” shall have the meaning ascribed to it in Article 11.1(c) (ii).
“Management Control” means the possession, directly or indirectly of the power to direct or
cause the direction of the management and policies of the Concessionaire, whether through the
ownership of voting securities, by contract or otherwise or the power to elect or appoint more
than 50% (fifty percent) of the directors, managers, partners or other individuals exercising
similar authority with respect to the Concessionaire.
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“Material Adverse Effect” means material adverse effect on (a) the ability of either Party to
exercise any of their rights or perform/discharge any of their duties/obligations under and in
accordance with the provisions of this Agreement and/or (b) the legality, validity, binding
nature or enforceability of this Agreement.
“Minimum Guaranteed Cargo” shall have the meaning ascribed to it in Article 6.17
“Month” means the calendar month as per the Gregorian calendar.
“Non Political Event” means the Force Majeure Events set out in Article 13.2.
“O&M Contract” means the contract, if any, entered into by the Concessionaire for the
operation and maintenance of the Project in accordance with the provisions of this Agreement
and shall include the Management Contract.
“Operations and Maintenance Standards” means the minimum standards of operations and
maintenance set out in the Appendix 3 with regards the Project Facilities and Services.
“Other Events” means the Force Majeure Events set out in Article 13.4.
“Party” means either the Concessioning Authority or the Concessionaire as the context may
require or admit and “Parties” means both Concessioning Authority and Concessionaire.
“Performance Guarantee” shall mean the bank guarantee(s) procured by the Concessionaire
for the benefit of the Concessioning Authority guaranteeing the performance of the obligations
of the Concessionaire hereunder in the manner specified in Article 5.1.
“Person” means any individual, company, corporation, partnership, joint venture, trust,
unincorporated organization, government or governmental authority or agency or any other
legal entity.
“Political Event” means the Force Majeure Events set out in Article 13.3.
“Port’s Assets” means the assets set out in Appendix 2, belonging to the Concessioning
Authority.
“Project” means the Marketing, Operation, Management, & Maintenance of port facilities and
allied facilities at Cuddalore Port, in accordance with the provisions of this Agreement.
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“Project Capacity” means the capacity of the Project Facilities and Services to handle 5.68
million tonnes of cargo per annum.
“Project Contracts” means collectively this Agreement, O&M Contract and any other
material contract (other than the Escrow Agreement or any commercial agreement with the
users) entered into or may hereafter be entered into by the Concessionaire in connection with
the Project and Project Facilities and Services.
“Project Facilities and Services” means the facilities and services provided by the
Concessioning Authority during the Concession Period, in accordance with this Agreement.
“Project Requirements” means the minimum requirements as to the operation and

maintenance of the Project and provision of Project Facilities and Services set out in Appendix
3.
“Project Site” means the area demarcated in Appendix 1 including the waterfront, berth, land
together with buildings, structures if any and easement rights thereto that may be given to the
Concessionaire and all other assets comprised therein on which the Concessionaire is
authorized to operate the Project Facilities and Services as set forth in this Agreement.
“Proposal ” means the application and the entire set of documents submitted by the Applicant
in response to the Request for Proposal.
“Quarter” means a period of 3 (three) Months.
“Remedial Period” has the meaning ascribed to it in Article 14.4.
“Requisition” has the meaning ascribed to it in Article 15.3.
“Safety Standards” means the minimum standards of safety set out in the Appendix 3 with
regards the Project/Project Facilities and Services.
“Scale of Rates” means the scale of rates along with the statement of conditions with respect
thereto framed from time to time and notified by Tamil Nadu Maritime Board or such other
competent authority under the provisions of Indian Ports Act, as applicable.
“Special Audit” shall have the meaning assigned to it under Article 7.3.
“Statutory Auditors” means a firm of chartered accountants appointed in terms of Section

138 of the Companies Act, 2013 and acting as the statutory auditors of the Concessionaire.
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“Supporting Project Infrastructure” means:
(a) maritime access channels;
(b) port entrance;
and shall include such other facilities as may be specified by the Concessioning Authority as
supporting infrastructure provided/to be provided for the Project.
“Tariff” means the applicable rate(s) as per Scale of Rates that may be charged by the
Concessionaire for and in respect of providing the Project Facilities and Services for other
users.
“Tender” means the Tender dated _________ vide ref no.______________, issued by the
Concessioning Authority inviting Applications/Proposals in accordance therewith for selection
of Applicant, and includes any addendum / clarifications issued in respect thereof by the
Concessioning Authority.
“Termination Notice” means the termination notice issued pursuant to Article 15.1 hereof.
“Termination Period” shall have the meaning as set out under Article 15.1 hereof.
“The Port” means Cuddalore Port.
“Transfer” means to transfer, sell, assign, pledge, hypothecate, create a security interest in or
other encumbrance on, place in trust (voting or otherwise), transfer by operation of law or in
any other way dispose of, whether or not voluntarily, the legal or beneficial interest in the
equity shares of the Concessionaire.
“Transfer Date” means the date of expiry or termination as the case may be, of the Concession
Period in accordance with the terms of this Agreement.
1.2. Interpretations
This Agreement constitutes the entire understanding between the Parties regarding the Project
and supersedes all previous written and/or oral representations and/or arrangements regarding
the Project. If there is any aspect of the Project not covered by any of the provisions of this
Agreement, then and only in that event, reference may be made by the Parties to the Application
documents, inter alia including the Tender, issued by the Concessioning Authority and also
including addendums, clarifications given in writing and the submissions of the Concessionaire
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and the Application submitted by the Concessionaire but not otherwise. In case of any
contradictions in the terms of this Agreement and any such other Application documents as
referred to above, the terms of this Agreement shall prevail.
In this Agreement unless the context otherwise requires:
a. any reference to a statutory provision shall include such provision as is from time to time
modified or re-enacted or consolidated so far as such modification or re-enactment or
consolidation applies or is capable of applying to any transactions entered into hereunder;
b. the words importing singular shall include plural and vice versa, and words denoting natural
persons shall include partnerships, firms, companies, corporations, joint ventures, trusts,
associations, organisations or other entities (whether or not having a separate legal entity);
c. the table of contents and any headings in this Agreement are for ease of reference only and
shall not affect the construction or interpretation of this Agreement;
d. the words “include” and “including” are to be construed without limitation;
e. any reference to any period of time shall mean a reference to that according to Indian
Standard Time;
f. any reference to day shall mean a reference to a calendar day;
g. any reference to month shall mean a reference to a calendar month;
h. “Recital”, “Article” and “Appendix” shall refer, except where the context otherwise
requires, to Articles of and any Appendix to this Agreement. The Appendices to this
Agreement shall form an integral part and parcel of this Agreement and will be in full force
and effect as though they were expressly set out in the body of this Agreement;
i. any reference at any time to any agreement, deed, instrument, license or document of any
description shall be construed as reference to that agreement, deed, instrument, license or
other document as amended, varied, supplemented, modified or novated at the time of such
reference;
j. any agreement, consent, approval, authorization, notice, communication, information or

report required under or pursuant to this Agreement from or by any Party and/or a Statutory
Auditor shall be valid and effectual only if it is in writing under the hands of duly authorized
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representative of such Party and/or Statutory Auditor, as the case may be, in this behalf and
not otherwise;
k. unless otherwise stated, any reference to any period commencing “from” a specified day or
date and “till” or “until” a specified day or date shall include both such days or dates;
l. unless otherwise specified, any interest to be calculated and payable under this Agreement
shall accrue on a Monthly basis and from the respective due dates as provided for in this
Agreement; and
m. any word or expression used in this Agreement , unless defined or construed in this
Agreement, shall be construed as per the definition given in General Clauses Act, 1897
failing which it shall bear the ordinary English meaning.
1.3. Measurements and Arithmetic Conventions
All measurements and calculations shall be in metric system and calculations done to 2 decimal
places, with the third digit of 5 or above being rounded up and below 5 being rounded down.
1.4. Ambiguities and Discrepancies
In case of ambiguities or discrepancies within this Agreement, the following shall apply:
a. between two Articles of this Agreement, the provisions of specific Articles relevant to the
issue under consideration shall prevail over those in other Articles;
b. between the dimension scaled from the Design and Drawings and its specific written
dimension, the latter shall prevail;
c. between any value written in numerals and that in words, the latter shall prevail; and
d. between the provisions of this Agreement and any other documents forming part of this
Agreement, the former shall prevail.
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ARTICLE 2
SCOPE OF THE PROJECT
2.1. Scope of the Project
The scope of the Project (the “Scope of the Project”) shall mean and include, during the
Concession Period:
a. Undertake marketing, operation and maintenance of the Port in accordance with the
provisions of this Agreement and in conformity with the Standards set forth in Appendix
3; and
b. Performance and fulfilment of all other obligations of the Concessionaire in accordance

with the provisions of this Agreement and matters incidental thereto or necessary for the
performance of any or all of the obligations of the Concessionaire under this Agreement.
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ARTICLE 3
CONCESSION AND PORT ASSETS
3.1 Concession
In consideration of the Concessionaire agreeing to pay to the Concessioning Authority the

Charges, and performing its obligations as set out in this Agreement, the Concessioning
Authority hereby grants to the Concessionaire, subject to the provisions of this Agreement, an
exclusive license for marketing, operating, maintaining, replacing the Project/ Project Facilities
and Services, installation of new equipments, construction of additional wharf / facilities,
Construction of Godown / Office Space.
3.2 Concession Period
The Concession hereby granted is for a period of 30 years commencing from the date of
commencement of commercial operation of port during which the Concessionaire is authorized
and obliged to provide the Services in accordance with the provisions hereof.
Provided that: -
a. in the event of the Concession being extended by the Concessioning Authority beyond the
said period of 30 years in accordance with the provisions of this Agreement, the Concession
Period shall include the period by which the Concession is so extended, and
b. in the event of an early termination/determination of the Concession/ this Agreement by

either Party in accordance with the provisions hereof, the Concession Period shall mean
and be limited to the period commencing from the Date of Award of Concession and ending
with the date of termination/determination of the Concession/this Agreement.
3.3 Acceptance of the Concession
The Concessionaire hereby accepts the Concession and agrees and undertakes to provide
Services in accordance with the provisions of this Agreement. Subject to and in accordance
with the provisions of this Agreement and Applicable Laws and Applicable Permits, the
Concessionaire shall at its costs, charges, expenses and risk including but not limited to foreign
exchange variation risk if any, equip, operate, maintain and replace the Project/ Project
Facilities and Services.
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3.4 Port’s Assets
a. In consideration of the Concessionaire agreeing to perform and discharge its obligations as

set forth in this Agreement, the Concessioning Authority hereby grants to the
Concessionaire, the exclusive right to enter upon, occupy and use the Project Site (111.72
acres, as given in Appendix 1) and Port’s Assets for the purpose of implementing the
Project and provision of Project Facilities and Services pursuant thereto in accordance with
this Agreement. The list of assets are given in Appendix 2.
b. The Concessionaire shall at its costs, charges and expenses make such development and
improvements in the Project Site and Port’s Assets as may be necessary or appropriate for
implementing the Project and providing Project Facilities and Services, in accordance with
the Agreement, Applicable Laws and Applicable Permits.
3.5 Use of Port’s Assets
The Concessionaire shall not without the prior written consent or approval of the
Concessioning Authority use the Project Site and the Port’s Assets for any purpose other than
for the purposes of the Project/the Project Facilities and Services and purposes incidental
thereto as permitted under this Agreement or as may otherwise be approved by the
3.6 Information about Project Site and Port’s Assets
The information about the Project Site and Port’s Assets as set out in Appendix 1 and Appendix
2 respectively is provided by the Concessioning Authority in good faith and with due regard to
the matters for which such information is required by the Concessionaire. The Concessioning
Authority agrees to provide to the Concessionaire, upon a reasonable request, any further
information relating to the Project Site and Port Assets, which the Concessioning Authority
may now possess or may hereafter come to possess, as may be relevant to the implementation
of the Project. Subject to this, the Concessioning Authority makes no representation and gives
no warranty to the Concessionaire in respect of the condition of the Port Assets or the Project
Site.
3.7 Acceptance of the Port Assets
The Concessionaire accepts possession of the Port’s Assets and Project Site on ‘as is where is’
basis and confirms having:
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a. inspected the Project Site/ Port's Assets, including the berths and all structures there at and
its surroundings;
b. satisfied itself as to the nature of the climatic, hydrological and general physical conditions
of the Project Site/ Port's Assets, the nature of the ground and subsoil, the form and nature
of the Project Site/Port's Assets, and the nature of the design, work and materials necessary
for the performance of its obligations under this Agreement; and
c. obtained for itself all necessary information as to the risks, contingencies and all other
circumstances which may influence or affect the Concessionaire and its rights and
obligations under or pursuant to this Agreement.
3.8 Peaceful Occupation
The Concessioning Authority warrants that the Concessionaire shall, subject to complying with
the terms and conditions of this Agreement, remain in occupation of the Project Site and Port’s
Assets during the Concession Period. In the event the Concessionaire is obstructed by any
Person claiming any right, title or interest in or over the Project Site and Port’s Assets or any
part thereof or in the event of any enforcement action including any attachment, distraint,
appointment of receiver or liquidator being initiated by any Person claiming to have charge on
the Project Site and Port’s Assets or any part thereof, the Concessioning Authority shall, if
called upon by the Concessionaire, defend such claims and proceedings.
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ARTICLE 4
CONDITIONS PRECEDENT
4.1. Conditions Precedent
The award of the Concession shall be subject to the satisfaction or waiver of the following
conditions precedent (the “Conditions Precedent”):
a. The following Conditions Precedent shall be satisfied by the Concessionaire:
i. Furnishing of the Performance Guarantee as stipulated in Article 5.1 hereof;
ii. Furnishing of copies (certified as true copies by a director of the

Concessionaire) of the constituent documents of the Concessionaire;
iii. Furnishing of all resolutions adopted by the Board of Directors of the

Concessionaire (certified as true copies by a director of the Concessionaire)
authorizing the execution, delivery and performance by the Concessionaire of each
of the Transaction Documents;
iv. Opening the Escrow Account and executing the Escrow Agreement;
v. Furnishing a certificate from its principal officer/director on the shareholding

pattern of the Concessionaire;
vi. Procuring and furnishing the following confirmations, in original, from the
Applicant:
b. it/they shall at all times comply with the provisions of Article 9.2 in respect of their
shareholding in the Concessionaire;
c. it/they has/have the financial standing and resources to fund /raise finances for undertaking
and implementing the Project in accordance with this Agreement;
d. the Applicant is duly organized and validly existing under the laws of the jurisdiction of its
incorporation, and has requested the Concessioning Authority to enter into this Agreement
with the Concessionaire and has agreed to and unconditionally accepted the terms and
conditions set forth in this Agreement;
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i. Furnishing to the Concessioning Authority a legal opinion from the legal counsel of the
Concessionaire with respect to the authority of the Concessionaire to enter into this
Agreement and the enforceability hereof;
and
ii. Obtaining Applicable Permits as may be required for operation and maintenance of
port.
e. The following Conditions Precedent shall be satisfied by the Concessioning Authority:
f. handing over physical possession of the Project Site and/or the Port’s Assets for the
purposes of the Project;
4.2. The aforesaid Conditions Precedent shall be complied with within 90 (ninety) Days of the date
of the Agreement. Each Party shall promptly inform the other Party in writing when the
Conditions Precedent for which it is responsible have been satisfied.
4.3. Any of the Conditions Precedent set forth in Articles 4.1(a) may be waived fully or partially by
the Concessioning Authority at any time in its sole discretion or the Concessioning Authority
may grant additional time for compliance with these conditions and the Concessionaire shall be
bound to ensure compliance within such additional time as may be specified by the
Concessioning Authority. Any of the Conditions Precedent set forth in Articles 4.1 (b) may be
waived fully or partially by the Concessionaire at any time in its sole discretion.
4.4. If the Concessionaire has fulfilled all the Conditions Precedent under Article 4.1(a) including
the furnishing of the Bank Guarantee and has not waived or extended the time under Article 4.3
above, and if the Concessioning Authority has failed to fulfil the Conditions Precedent to be
fulfilled by it under Article 4.1(b) (and which are within the power of the Concessioning
Authority), the Concessioning Authority shall be liable to pay liquidated damages in a sum
calculated at the rate of 0.1% (zero point one percent) of the Performance Guarantee for each
day’s delay until fulfilment of the Conditions Precedent subject to a maximum of 5% (five
percent) of the figure mentioned in the Performance Guarantee furnished by the Concessionaire.
In such event, having regard to the quantum of damages, the time for the performance shall be
deemed to have been extended by the number of days for which the liquidated damages is paid
and if, after the extended period the Concessioning Authority is still not in a position to comply
with the Conditions Precedent, then the agreement shall be liable to be terminated as provided
for in Article 4.6 below;
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4.5. If the Concessioning Authority has fulfilled all the Conditions Precedent under Article 4.1(b)
and has not waived or extended the time under Article 4.3 above, and if the Concessionaire has
failed to fulfil the Conditions Precedent to be fulfilled by it under Article 4.1(a) (and which are
within the power of the Concessionaire), the Concessionaire shall be liable to pay liquidated
damages in a sum calculated at the rate of 0.1% (zero point one percent) of the Performance
Guarantee for each day’s delay until fulfillment of the Conditions Precedent subject to a
maximum of 5% (five percent) of the figure mentioned in the Performance Guarantee furnished
by the Concessionaire. In such event, having regard to the quantum of damages, the time for the
performance shall be deemed to have been extended by the number of days for which the
liquidated damages is paid and if, after the extended period the Concessionaire is still not in a
position to comply with the Conditions Precedent, then the agreement shall be liable to be
terminated as provided for in Article 4.6 below;
4.6. In the event that the Conditions Precedents are not complied with within the time (including the
extended time, if any) in terms of the aforesaid Articles 4.2 to 4.5, this Agreement shall be liable
to be terminated. If such termination is on account of failure of the Concessionaire to comply
with the Conditions Precedent, the Performance Guarantee shall stand forfeited. If such
termination is on account of failure of the Concessioning Authority, the Concessioning Authority
shall be obliged to return the Performance Guarantee. It is clarified that except for the payment
as stipulated in the foregoing Article 4.4 and 4.5 and forfeiture in this Article 4.6, each party
hereto shall have no claims against the other for costs, damages, compensation or otherwise.
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ARTICLE 5
PERFORMANCE GUARANTEE
5.1 Performance Guarantee
The Concessionaire shall for due performance of its obligations during the Operation and
Maintenance Phase provide to Concessioning Authority an unconditional and irrevocable bank
guarantee, in favour of the Concessioning Authority encashable and enforceable at Chennai
(the “Performance Guarantee”). The Performance Guarantee shall be for a sum of
₹8,00,00,000/ (Rupees Eight Crore only). Till such time the Concessionaire provides to
Concessioning Authority the Performance Guarantee pursuant hereto, the EMD shall remain
in full force and effect. The Performance Guarantee, if in the form of a bank guarantee shall be
valid for an initial period of 3 (Three) years and shall be renewed 30 (thirty) Days prior to
expiry of each year, for an additional term of 3 (Three) years until completion of the concession
period. It is clarified that the Concessionaire shall be liable to restore the Performance
Guarantee to the full amount in case of part encashment of the same by the Concessioning
Authority. This shall be done within 30 (thirty) Days of any such part encashment. Failure of
the Concessionaire to restore and maintain the Performance Guarantee in accordance with this
Article shall entitle the Concessioning Authority to forthwith terminate this Agreement and
also if relevant, to forfeit the Performance Guarantee.
5.2 Upon completion of the concession period, Performance Guarantee will be released, after
certifying by the concerned authority that there are no dues to be paid to the Concessioning
Authority after completion of concession period and smooth transfer of the work to the next
incumbent.
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ARTICLE 6
OPERATIONS & MAINTENANCE
6.1 Operation & Maintenance
In addition to any of its other obligations under this Agreement, the Concessionaire shall
market, operate, maintain and repair the Project Facilities and Services, entirely at its cost,
charges, expenses and risk in accordance with the provisions of this Agreement. The
Concessionaire’s obligations under this Article 6 shall include but shall not be limited to the
following:
i. Berth and Terminal Operations:
The Concessionaire shall:
a. Promptly commence operations upon the Project Facilities and Services being
declared by the Concessioning Authority as ready for operations.
b. Make efforts to maximize cargo handled so as to achieve optimal utilization of the

c. Be free to deploy higher capacity equipment/facilities/ technology, etc. and induct

new technology and carry out value engineering for improved productivity and/or
improved utilization and/or cost saving of Project assets during the concession
period.
d. Ensure that the Project Facilities and Services shall adhere to the Operations and
Maintenance Standards and Safety Standards and there is safe, smooth and
uninterrupted flow of traffic normal operating conditions.
e. Minimize disruption to traffic in the event of accidents or other incidents affecting

the safety and use of the Project Facilities and Services by providing a rapid and
effective response and maintaining liaison with emergency services of the
Concessioning Authority or other agencies.
f. Make available all necessary financial, technical, technological, managerial and

other resources for operation, maintenance, repair and replacement of the Project
Facilities and Services in a timely manner.
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g. Ensure maintenance of proper and accurate record/data/accounts relating to
operations of the Project Facilities and Services and the revenue earned there from.
h. Obtain, maintain and comply with Applicable Permits and comply with the
Applicable Laws including those relating but not limited to dock side safety, health,
environment and labour.
i. Prevent, with the assistance of concerned law enforcement agencies, any

encroachment or unauthorized use of the Project Facilities and Services.
j. Responsible for loading, discharging and storage of cargo & containers and other
subsidiary services related to cargo operation.
k. Ensuring safety and proper delivery of goods and containers with due compliance
of applicable laws (e.g. the laws of free zones, special economic zones and customs
administrations).
l. The Concessionaire is obliged to observe best practice regarding loading,

unloading and storing of goods at port facilities and Comply with the specified
norms for the discharge and loading of goods, container, and loading and unloading
from trucks during the concession period and should comply with the obligations
of the international conventions for safety and protection of goods and the
containers containing dangerous goods (IMDG CODE), Convention on Safe
Containers (CSC), (ISPS CODE) and other related codes and conventions for
handling operations.
m. The Concessionaire shall ensure compliance with the safety standards set out under
Applicable Law/international conventions, as relevant, from time to time. Ensuring
compliance to Quality, Environmental, Occupational Health, Safety and ISPS
codes as may be prevailing from time to time and should comply with all related
standards, conventions, codes and executive guidelines approved by the Ports and
Maritime Organization, Government of India which are related to Health, Safety
and Environment (HSE), firefighting, security, information technology, repair of
superstructures and infrastructures.
n. The bidder has to undertake periodic maintenance dredging to maintain the sea bed
level of (-) 9.0 m CD.
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6.2 Repairs and Maintenance
The Concessionaire at its own cost promptly and diligently maintain, replace or restore any of
the project facilities or part thereof which may be lost, damaged, destroyed or worn out.
The Concessionaire shall at its own cost:
a. Repair as necessary and maintain the Project Facilities and Services or any part
thereof and for this purpose carry out routine preventive measures and maintenance
of the Project Facilities and Services including resurveying of pavement, repair
structures and repair and refurbish equipments; and
b. Maintain the Project Facilities and Services and Good Industry Practice with the
objective of providing adequate service standards and ensuring that the Project
Facilities and Services to be transferred to the Concessioning Authority upon
expiry of the Concession Period are in good condition, normal wear and tear
excepted.
c. While carrying out the repairing, maintaining and replacing the project facilities,
the Concessionaire acknowledges and accepts that it is holding and maintaining the
concession or assets, project facilities in trust for eventual transfer to the
Concessioning Authority on termination of the agreement and therefore, will not
do any act as a result of which the value of Port Assets and Project Facilities and
Services is diminished.
d. The Concessionaire shall, at all times during the Concession Period, at its own risk,
cost, charges and expenses, performance and pay for maintenance repairs, renewals
and replacement of various type of assets and equipment in the Concessionaire
premises and /or the project or any parts thereof, whether due to use and operations
or due to deterioration of materials and /or parts, so that on the expiry or termination
of Concession, the same shall except normal wear and tear be in good working
condition as it were at the time of commencement of the Concession.
e. While carrying out the repair, maintenance and replacement of the project facilities,
the Concessionaire shall carry out the work in accordance with the manufacturer’s
recommendations and the relevant latest Indian Standards or in its absence
ISO/OISD Standards. In the event that the Concessionaire, by necessity or
otherwise need to follow any other country standard and it shall be equal or superior
to the standard specified above.
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6.3 Installation of Desalination and ETP Plant
As mandated in Environmental Clearance, the Concessionaire at his cost should install a 100
KLD desalination plant to meet the water requirements and as per TNPCB norms, the
Concessionaire at his cost should setup an ETP plant. After the completion of the concession
period, the facilities created should be handed over to the Concessioning Authority without any
compensation.
6.4 Installation of Equipments
The Concessionaire is permitted to install necessary equipments required for the regular
operation of the port at his cost with prior intimation to the Concessioning Authority. At the
end of the Concession period, the Concessionaire shall have the option of taking back the
equipment’s or transfer to the Concessioning Authority at the value fixed by the Concessioning
Authority.
6.5 Repairs, Replacement or Restoration
The Concessionaire shall at its own costs, promptly and diligently repair, replace or restore any
of the Project Facilities and Services or part thereof which may be lost, damaged, or destroyed
for any reason whatsoever.
6.6 Removal / Replacement of Assets
Except as provided/authorized, the Concessionaire shall not, without the prior written
intimation to the Concessioning Authority, remove or replace any assets comprised in the
Project Facilities and Services. Such notice shall contain the exact details of the assets that the
Concessionaire intends to remove and/or replace, its reasons for doing so and the likely period
for replacement.
6.7 Creation of Additional wharf / facilities
a. The Concessionaire shall create additional wharf / other facilities such as ship repairs etc.
at his cost with the prior approval of the Concessioning Authority. After the completion
of the concession period, the facilities created should be handed over to the
Concessioning Authority without any compensation.
b. If the facility is used for handling of cargo, the prevailing cargo charges applicable to the
existing facility shall be paid to the Concessioning Authority. If the facility is used for
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other purposes such as ship repairs etc., a separate income sharing approved by the
Concessioning Authority shall be paid.
6.8 Construction of Godown / Office Space
The Concessionaire shall construct godown, office space or any other facilities that may be
required for effective and efficient operation of the port at his cost with prior approval of the
Concessioning Authority. After the completion of the concession period, the facilities created
should be handed over to the Concessioning Authority without any compensation. There shall
be sufficient space in the office to accommodate at least 6 officers and staff of Concessioning
Authority.
6.9 Utilities and Services
The Concessionaire may, at its cost, make alternate arrangements for power including but not
limited to installation of generators, sewage and water subject to obtaining Applicable permits,
if any.
6.10 Approval of Master Plan
a. The Concessionaire shall prepare and submit the master plan for all the port related
infrastructure facilities to be developed within 60 days from the date of this agreement.
b. The Concessioning Authority will review and give its approval within 15 days from the
date of submission of complete details. Any delay shall be treated as “Deemed
Approved”.
c. For projects which are planned at a later stage by the Concessionaire, separate approval
can be taken subsequently from the Concessioning Authority. For taking up the projects
under the approved master plan, the Concessionaire need to only inform the
6.11 Payments to Concessioning Authority
The Concessionaire shall make/ensure payments to the Concessioning Authority as per Article
7.
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6.12 Access for Inspection
a. The Concessioning Authority at its cost will appoint an Independent Engineer to access
the cost of the assets to be created, compliance etc. during the agreement period.
b. The Concessionaire shall be obliged to extend all co-operation to Experts appointed by

the Concessioning Authority for purposes of verifying that the Project/the Project
Facilities and Services are operated and maintained in compliance with the Performance
Standards and adhere to the Operations and Maintenance Standards and Safety Standards.
c. Additionally, the Concessionaire shall upon prior intimation by the Concessioning

Authority provide the authorized representatives of the Concessioning Authority access
to the Port’s Assets/the Project Facilities and Services for inspection and review of
operations and also to ascertain compliance with any of the requirements under this
Terms of Contract.
d. Without prejudice to the generality of this provision, it is agreed that the Concessionaire
shall in particular extend all co-operation and information required by the Experts
appointed by the Concessioning Authority for conducting a safety audit and verifying
that the Project/Project Facilities and Services are in strict compliance with the Safety
Standards.
6.13 Submission of monthly reports
The Concessionaire shall provide the Concessioning Authority, Monthly reports on cargo
traffic, unit gross output/ discharge rates at berth, daily output rated per vessel, revenue
generated and effective working time to waiting within 7 (seven) days following the end of
each Month, and any other information relating to operations which the Concessioning
Authority may require from time to time. If so desired by the Concessioning Authority, the
Concessionaire shall provide the reports in prescribed formats and in electronic form so as to
provide online access to the Concessioning Authority and its representatives.
6.14 Computer System and Network
The Concessionaire shall install, operate and maintain such computer system and network
(such as Electronic Data Interchange and Port Community System) and follow such protocol
as specified by the Concessioning Authority from time to time. In addition, the Concessionaire
shall takeover, maintain the wireless system, upgrade it as per rules and maintain it at their cost
during the Concession period.
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6.15 Security Arrangements
a. The Concessionaire should make his own arrangements for security in the Project
Site/Port Assets and with respect to the Project provided the Concessionaire shall
abide by the security regulations/ procedures prescribed by the Concessioning
Authority or a Government Authority from time to time.
b. The Concessionaire shall obtain Statement of Compliance (SoC) in conforming to

the International Ship and Port Facility Security Code (“ISPS Code”) and such
other codes/requirements of International Maritime Organization as may be
applicable to India from time to time.
6.16 Employment of Personnel
The Concessionaire shall employ qualified and skilled personnel required to operate the Project
Facilities and Services. The terms of employment may be as deemed fit by the Concessionaire
and the Concessionaire shall comply with all Applicable Laws and bear all costs in this regard.
Without prejudice to the generality of this provision, all requisite approvals for employment of
personnel of foreign origin or nationality shall be obtained by the Concessionaire prior to
engaging such personnel. Failure to obtain approval will not amount to a Force Majeure Event.
All employees shall always remain the Concessionaire’s responsibility. All labour law
compliances shall be that of the Concessionaire alone. As far as possible, preference shall be
given for personnel belonging to Cuddalore district.
6.17 Minimum Guaranteed Throughput (MGT)
The Concessionaire should achieve the Minimum Guaranteed Throughput (MGT) per annum
set out as below and it shall not be entitled to any relaxation of its guarantee in this respect:
Years Minimum Guaranteed Years Minimum Guaranteed

Throughput (Tonnes) Throughput (Tonnes)
1 3.00 lakh 16 35.00 lakh
2 4.50 lakh 17 35.00 lakh
3 6.75 lakh 18 35.00 lakh
4 10.13 lakh 19 35.00 lakh
5 15.19 lakh 20 35.00 lakh
6 22.78 lakh 21 35.00 lakh
7 35.00 lakh 22 35.00 lakh
8 35.00 lakh 23 35.00 lakh
9 35.00 lakh 24 35.00 lakh
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10 35.00 lakh 25 35.00 lakh
11 35.00 lakh 26 35.00 lakh
12 35.00 lakh 27 35.00 lakh
13 35.00 lakh 28 35.00 lakh
14 35.00 lakh 29 35.00 lakh
15 35.00 lakh 30 35.00 lakh
For the purpose of estimating Throughput, one loaded TEU will be considered at 12.00 MT
and one empty TEU will be considered at 2.00 MT.
Failure to comply with the same will result in levying of penalty.
6.18 Indemnity Against Claims for Loss of Goods
Notwithstanding anything contained in the Indian Ports Act or any other law for the time being
in force, the Concessionaire shall be responsible for meeting any claim, action, suit or
proceeding (the “Action”) by any third party alleging the loss, destruction or deterioration of
goods of which charge has been taken by the Concessionaire and indemnify, save and hold
harmless the Concessioning Authority, its officers, employees, agents and representatives (the
“Indemnitees”) against all claims which may be asserted against or suffered and legal fees and
costs incurred and which relate to any such goods, provided that notice of the Action received
by the Indemnitee(s) shall be forwarded to the Concessionaire expeditiously and in any case
within 5 Days of the receipt thereof by any of the Indemnitees. Provided further that the
Indemnitees shall have the right but not the obligation, to contest, defend and litigate any
Action by any third party alleged or asserted against any of such Indemnitees in respect of,
resulting from, related to or arising out of any matter for which it is to be indemnified
hereunder, and reasonable costs and expenses thereof shall be indemnified by the
Concessionaire. If the Concessionaire acknowledges in writing its obligation to indemnify the
Indemnitees in respect of loss to the full extent, the Concessionaire shall be entitled, at its
option, to assume and control the defence of such Action at its expense and through the counsel
of its choice; provided it gives prompt notice of its intention to do so to the Indemnitees and
reimburses to them for the reasonable cost and expenses incurred by them prior to the
assumption of such defence by the Concessionaire. In such case the Indemnitees shall not be
entitled to settle or compromise any Action without the prior written consent of the
Concessionaire, which consent shall not be unreasonably withheld or delayed. This indemnity
shall survive termination of this Agreement.
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6.19 Maintenance of Complaint Portal
a. The Concessionaire shall maintain a “Complaint Portal” on its website which shall
be available to all users of the Project Facilities and Services who shall be duly
informed about availability of the provision for lodging of complaints. The
Complaint Portal shall also be linked to the Concessioning Authority’s website
with an alert system for real time access to the complaints.
b. Concessionaire shall take action for just and fair redressal of the grievance and
submit a reply to the complainant within thirty days from the date of receipt with a
copy to the Concessioning Authority and maintain a proof of reply.
c. If the Concessionaire fails to address the grievance and the complaint makes a
reference to the Concessioning Authority, it will issue directions which shall be
complied by the Concessionaire.
d. Any information sought by the Concessioning Authority at any point of time during
the concession period should be shared by the Concessionaire immediately.
6.20 Rights of Concessionaire
i. Preferential and Priority Berthing
a. Normally, except for the priority and preferential berthing that may be authorized
in terms of guidelines issued by the Government from time to time, the
Concessionaire shall manage and operate the Project Facilities and Services on a
first come - first serve, common-user basis, open to any and all shipping lines,
importers, exporters, shippers, consignees and receivers, and refrain from
indulging in any unfair or discriminatory practice against any user or potential user
thereof. However, if there is a requirement to offer preferential or priority berthing
to any one or more shipping lines or vessel owners/operators to optimize the use of
the Project Facilities and Services, it shall be done in accordance with the priority
berthing norms agreed between Concessionaire and the Concessioning Authority.
b. The Concessionaire shall permit the vessels of Navy, Coast Guard and other vessels
as specified by the Concessioning Authority to use the port on priority basis without
affecting the commercial operations of the port.
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ii. Unclaimed cargo
The Concessionaire may at his cost:
a. After obtaining prior written approval of the Commissioner of Customs or other

competent Government Authority and in accordance with the provisions of
Applicable Law, destroy or dispose off by way of public auction and/or tender, any
unclaimed cargo, the charge of which has been taken by Concessionaire under or
pursuant to this Agreement, and always subject to provisions of Indian Ports Act
and other laws in this regard.
b. Institute proceedings for recovery of unrealized charges, if any, in its name and/or
defend any claim made in respect of such cargo by consignee/owners. The
Concessioning Authority agrees to provide all reasonable assistance necessary in
this regard to the Concessionaire.
6.21 Penalty for shortfall in performance
In the event the Concessioning Authority, whether from the review of reports submitted by the
Concessionaire or otherwise, observes that the Project/Project Facilities and Services do not
comply with the Performance Standards or fall short of the Performance Standards, the
Concessioning Authority shall calculate the amount of penalty payable by the Concessionaire
in accordance with Article 7.5 and demand the Concessionaire by a notice in writing to pay the
same within 30 (thirty) Days and on failure of the Concessionaire to pay the same recover the
amount from the Concessionaire. Provided that on receipt of the demand the Concessionaire
may make a written representation to the Concessioning Authority which shall be considered
by Concessioning Authority on merits and the Concessioning Authority may waive the penalty
in part or full, if it is satisfied that the Concessionaire has been carrying out its obligations
diligently and efficiently and the shortfall to be waived was on account of reasons beyond the
control of the Concessionaire.
6.22 Levy and Recovery of the Tariff
The Concessionaire shall be entitled to recover Tariff from the users of the Project Facilities
for the port services rendered. Further, it shall be entitled to fix its own tariff for various
services provided in the Port in accordance with applicable Indian laws.
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ARTICLE 7
PAYMENTS TO THE CONCESSIONING AUTHORITY
7.1 Payment Terms
a. The Concessionaire shall pay the Concessioning Authority the license fee for land
as below:
At the time of signing of Concession Agreement (A) ₹1.90 crores

A + 12 months ₹1.14 crores
b. The Concessionaire shall pay the Concessioning Authority on monthly basis the
amount whichever is higher among the following:
1. Cargo handled per month X Approved cargo charges

2. ( MGT / 12 ) X Approved cargo charges
3. 7% of the Gross Revenue
c. The cargo charges for every month has to be remitted before 5th of the succeeding
month. If 5th is a banking holiday in the geographical region, the amount has to be
remitted on the next working day.
d. An escalation of 15% on the cargo charges will be considered after completion of

every three financial years and the bidder is bound to pay the same to TNMB (i.e.)
An increase of 15% on the cargo charges approved for the first year will be
35
considered for the fourth year and 15% increase of the fourth year rate will be
considered for seventh year and so on. For the purpose of same, the start of financial
year (i.e) 1st of April will be considered as the start of a year.
e. A mobilization period of 12 months from the date of signing of this agreement shall
be permitted to mobilize the resources for commencing port operations. No
extension shall be given beyond this period. During mobilization period, the
Concessionaire shall not be liable to pay the Concessioning Authority any amount
as per Article 7.1 (b).
f. If the closure of financial year is more than 90 days from the date of completion of
mobilization period, the same will be treated as a full financial year for the purpose
of applying increase in cargo charges.
g. Gross Revenue means and includes, Gross income generated from the operation of
the port or any other service in respect of vessels and cargo as audited by audit
firms approved by Accountant General including but not limited to berth hire,
pilotage, tug assistance fee, hire charges for flotilla, towage, stevedoring, wharfage,
transhipment, lighterage, intraport transportation, demurrage, storage, cargo
handling including stuffing and destuffing of containers, hire of floating crafts,
railway services and all other revenues from services within port except port dues
and interest income whether collected or not by the Concessioning Authority and
its assignees or sub-contractors or sub-licensees. It is clarified that discounts, if any
offered by the Concessionaire to the users for any reason whatsoever in respect of
the Project Facilities and Services, shall be ignored for the purpose of Gross
Revenue.
h. Upon completion of the concession period, Performance Guarantee will be

released, after certifying by the concerned authority that there are no dues to be
paid to the Concessioning Authority after completion of concession period and
smooth transfer of the work to the next incumbent.
i. The Concessioning Authority also reserves the right to recover any dues from the
Concessionaire, which is found on later date, during audit/excess payment, after
final settlement is made to them. The Concessionaire is liable to pay such dues to
the Concessioning Authority immediately on demand, without raising any
dispute/protest.
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7.2 Collection of Cesses and Charges
The Concessionaire shall collect all cesses and charges including infrastructure cess, if any
levied on the users as may be requested by the Concessioning Authority, on behalf of the
Concessioning Authority and remit the same to the Concessioning Authority. Provided, the
Concessionaire shall be duly authorized by the Concessioning Authority or such other authority
as may be competent in this regard, for the purpose of such collection.
7.3 Certified Accounts
During the subsistence of this Agreement, the Concessionaire shall maintain all documents and
supporting evidences for its financial statements including agreements and documents with
respect to all capital and debt raised by the Concessionaire, capital and revenue expenses
towards the Project, ship/vessel/user wise information, and, as relevant, the details of cargo
handled by category, tariffs charged and the amount of rates received, Charges payable to the
Concessioning Authority etc. The Concessionaire should submit to the Concessioning
Authority a financial statement of the Gross Revenue for every 6 (six) monthly period ending
30th September and 31st March every year, duly certified by its Statutory Auditors. The
certificate must be furnished within 30 (thirty) Days of the end of each such period.
The Concessioning Authority shall, at its own cost, have the option to appoint another firm of
chartered accountants duly licensed to practice in India (the “Additional Auditor”) to conduct
a special audit of the Gross Revenue and the financial statements, documents and supporting
evidences thereto as may be mandated by the Concessioning Authority and report to the
Concessioning Authority such information as may be desired by the Concessioning Authority
for any period (“Special Audit”).
In the event that the Gross Revenue reported by the Additional Auditor is higher than that
reported by the Statutory Auditor, the auditors shall meet to resolve such differences and if
they are unable to resolve the same the Concessionaire shall pay the Charges reported by the
Additional Auditor. The Concessionaire shall also pay interest @12% (twelve percent) on the
difference amount for the intervening period. Further, the Concessionaire shall reimburse all
costs, charges and expenses related to the Special Audit. Without prejudice to the aforesaid, if
the difference between the Gross Revenue reported by the Additional Auditor and that reported
by the Statutory Auditor is higher than 5% (five percent), the Concessioning Authority shall at
its sole discretion have the right to require a Special Audit for the entire outstanding tenure of
the Concession.
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7.4 Escrow Account
a. The Concessionaire shall maintain an escrow account with a bank approved by the
Concessioning Authority (“Escrow Account”), during the subsistence of this
Agreement and enter into an agreement substantially in the format prescribed with
such bank to ensure that all revenues and other receipts arising from the Project
and under any agreements, including this Agreement and all proceeds received
pursuant to any insurance claims received by the Concessionaire are deposited into
such Escrow Account. Provided, the Concessionaire shall not deposit any amounts
including the cesses and duties collected by it from the users on behalf of the
Concessioning Authority or such other authority in accordance with Article 7.2
hereof or pursuant to any other instructions in respect thereof in the Escrow
Account and shall deposit the same in a separate account dedicated for the same
and maintained by it in trust for the Concessioning Authority or such other
authority.
b. Withdrawals and appropriations during the Concession Period, at any relevant

time, from the Escrow Account shall be in the following order of priority:
i. for all taxes due and payable by the Concessionaire;
ii. towards payment of Charges and other sums payable to the Concessioning
Authority and liquidated damages, if any;
iii. all expenses relating to operations and management of the Project/Project

Facilities and Services;
iv. towards its debt service obligations;
v. towards any reserve requirements;
and the Concessionaire shall be at liberty to withdraw any sums outstanding in the
Escrow Account after all the aforesaid payments due in any Quarter have been
made and/or adequate reserves have been created in respect thereof for that Quarter.
Provided, upon issuance of Termination Notice and/or suspension of the
Concessionaire in accordance with the provisions of the tender, withdrawal from
the Escrow Account shall be made only in accordance with the written instructions
of the Concessioning Authority.
c. All amounts standing to the credit of the Escrow Account at the end of the
Concession Period including amounts credited to the Escrow Account towards
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compensation payable in accordance with Article 16 shall be appropriated in the
following order of priority:
i. towards taxes and statutory dues payable by the Concessionaire;
ii. all amounts due to the Concessioning Authority;
and the Concessionaire shall be at liberty to withdraw any sums outstanding in the
Escrow Account after all the aforesaid payments due have been made and/or
adequate reserves have been created in respect thereof to the satisfaction of the
7.5 Penalty
a. Failure to pay the amount committed to the Concessioning Authority within the
respective due dates would carry interest @ 24% per annum from the due date until
the date of payment or realization thereof.
b. If the Annual Minimum Guaranteed Throughput is not achieved, the Competent

Authority will constitute a committee to analyze the reasons for the shortfall. If any
lapses on the Concessionaire is found, the Competent Authority reserves the right
to levy penalty for an amount equivalent to 100% of the approved cargo charges
for the year under review on the shortfall quantity.
c. Failure to achieve Minimum Guaranteed Throughput for a consecutive period of 3

years will lead to termination of this Agreement and forfeiture of Performance
Guarantee.
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ARTICLE 8
ASSET OWNERSHIP
8.1. Ownership of Assets
The ownership of the Project Site and Port’s Assets shall always remain vested with the
Concessioning Authority. The rights of the Concessionaire in the Project Site and Port’s Assets
shall only be that of a bare licensee of such assets and the Concessionaire shall neither assign,
transfer, sublet, create any charge, mortgage or Encumbrance, nor shall the Concessionaire
create or permit creation of any third party rights whatsoever, on whole or any part of the Port’s
Assets or Project Site. Further, any such rights of the Concessionaire shall always be subject to
existing rights of way. It is expressly agreed that the Concessionaire’s rights in the Project Site
and/or the Port’s Assets shall cease without the need for any action to be taken by the
Concessioning Authority upon the termination of this Agreement for any reason whatsoever.
8.2. Assets created or provided by the Concessionaire
The ownership of all infrastructure assets, buildings, structures, berths, wharfs, equipment and
other immovable and movable assets constructed, installed, located, created or provided by the
Concessionaire at the Project Site and/or in the Port’s Assets pursuant to this Agreement shall,
until expiry of the concession period or transfer to the Concessioning Authority on Termination
in accordance with this Agreement, be with the Concessionaire. However, such ownership of
buildings etc. erected by the Concessionaire at the Project Site shall not be construed as and
shall not confer any rights in the Project Site or other Port’s Assets upon the Concessionaire,
save as that of a bare licensee as provided for in this tender and will be dealt with as per Article
6.3, 6.4, 6.7, 6.8.
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ARTICLE 9
SHAREHOLDING
9.1. Ownership Structure
The Applicant has caused the Concessionaire to be incorporated as a special purpose company
to operate and maintain the Project/Project Facilities and Services in accordance with this
Agreement. The shareholding pattern of Concessionaire is
S.No. Share Holder’s Name No. of Shares Percentage

1
2
Total Share Holding of the Concessionaire 100.00%
9.2. Shareholding
Any change in ownership / shareholding pattern shall be permitted only after the 2nd (second)
anniversary of the date of commercial operation of the Port. Further, the Concessionaire shall
at no time undertake or permit any Change in Ownership except in accordance with the
provisions of Article 11.1.f and that the Applicant/ members of the Consortium, hold not less
than 51% (fifty-one percent) of its issued and paid up Equity till the end of the Concession
Period; In case of consortium each member of the consortium on whose strength the project
was awarded must hold at least 20% of the issued and paid up Equity till the end of the
Concession Period.
Any Transfer of shareholding in the Concessionaire and/or direct or indirect change in the
Management Control of the Concessionaire, including by way of a restructuring or
amalgamation, shall only be with the prior written approval of the Concessioning Authority
which consent shall not be withheld except (i) for reasons of national security; or (ii) if the
Person proposed for assuming such Management Control would by virtue of the restrictions
imposed under the Applicable Law or the conditions of bidding (including restrictions to avoid
anti-competitive and monopolistic practice) and/or public policy be disqualified from
undertaking the Project.
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9.3. Constituent Documents
The Concessionaire shall ensure that its articles of association adequately reflect the aforesaid
and the relevant commitments, obligations and responsibilities of the Applicant/Consortium.
In particular, the articles of association and the memorandum of association of the

Concessionaire shall be amended within 3 (three) months of the Date of Award of Concession
to include the terms and conditions regarding the composition of share-holding and
management stipulated in this Agreement; and terms and conditions related to changes in the
share-holding pattern stipulated in this Agreement. The Concessionaire shall submit the
amended articles of association and the memorandum of association to the Concessioning
Authority as soon as may be reasonably possible.
Any subsequent change in the articles of association or the memorandum of association which
alter the provisions required by this Article shall require the prior approval of the
Concessioning Authority and the articles of association and memorandum of association of the
Concessionaire shall include a specific provision to this effect.
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ARTICLE 10
GENERAL CONDITIONS
10.1. General Conditions
a. Concessioning Authority reserves the right to relax or waive or amend any of the
conditions.
b. Sub-assign, pledging, mortgaging of the project site and facilities is not permitted.
c. The Concessioning Authority shall lease other areas in its possession (i.e. area other
than the project site specified in Appendix 1) to some other activity and the
Concessionaire shall have no right to object the right of Concessioning Authority
or their authorized agency.
d. Concessioning Authority or its authorized representative is at their liberty to visit

the site for monitoring and inspection at any time during the concession period.
Any mid-course correction advised by Concessioning Authority shall be duly
incorporated.
e. If on account of non-compliance with the provisions of any laws, Concessioning

Authority is called upon to make any payment to or in respect of his employees,
the Concessionaire shall be liable and pay Concessioning Authority all such
amounts. No liability whatsoever shall attach to Concessioning Authority on
account of or any failure on the part of the Concessionaire to observe these
regulations.
f. Any liability arising out of any litigation (including those in consumer courts) due
to any act of agencies/personnel shall be directly borne by the Concessionaire
including all compensation/damage/expenses/fines, the concerned Concessionaire
personnel shall attend the court as and when required.
g. Concessioning Authority will have no responsibility in case of any loss is caused

to any life or property due to accident, fire or any other reasons. The selected
Concessionaire is required to take appropriate safety and insurance measures to
safeguard against any loss to human life.
h. Concessioning Authority will have no liability on account of any omission or

commission of regulatory/statutory requirement by the Concessionaire.
i. Concessioning Authority shall not be accountable either directly or indirectly to the

lenders of the Concessionaire at any point of time.
j. Concessioning Authority shall not be made a party to any litigation by or on behalf

of the Concessionaire.
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k. The Concessionaire shall abide by all statutory national and international laws as
applicable for marketing, operation and maintenance of port.
l. All infrastructure requirements for obtaining statutory approval towards

commencement of port operation shall be carried out by the Concessionaire.
m. The Conservancy of the port shall vest with Concessioning Authority and port dues
and surcharge on port dues shall be directly payable to Concessioning Authority as
per the scale of rates of Concessioning Authority. Port entry and clearance will be
issued by the Concessioning Authority on receipt of no dues certificate from the
port operator.
n. The merchant overtime fees shall be directly payable to TNMB as per the scale of
rates of TNMB.
o. Any further maintenance of channel and channel depth is the responsibility of the
Concessionaire.
p. The Concessionaire will indemnify, defend and hold harmless the Concessioning
Authority from and against, and in respect to, any and all losses, expenses, costs,
obligations, liabilities and damages, including interest, penalties and attorney’s fees
and expenses, that the Concessionaire may incur as a result of any negligent or
willful acts or omissions of the Concessionaire.
q. All statutory dues and taxes including municipal taxes, renewal fees for Consent to
Operate (CTO) to TNPCB should be paid by the Concessionaire during the
concession period.
r. The movement of Harbour crafts from Cuddalore Port to Marine Terminal Facility
of Chemplast Cuddalore Vinyls Limited located within Cuddalore port limits shall
not be interrupted for men and materials movement. Fishing vessels movement in
and out of the channel for livelihood shall be allowed without hindrance.
s. Any notice regarding any problems, to the Concessionaire shall deemed to be

sufficiently served, if given in writing at his usual or last known place of business.
t. In the course of discussion and instruction Concessioning Authority may disclose

information of confidential and proprietary nature relating to the port, knowhow,
to the Concessionaire. Such information shall be considered as confidential.
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ARTICLE 11
GENERAL RIGHTS, DUTIES AND OBLIGATIONS
11.1. Of the Concessionaire
a. Applicable Permits
a. The Concessionaire shall at all times during the Concession Period maintain and
comply with the Applicable Permits.
b. The Concessionaire shall obtain all approvals for statutory approvals for safe and
peaceful operation of port / facilities.
c. The Concessionaire shall obtain all statutory approvals for creation of additional
wharf / facilities, godown, office space etc.
b. Taxes & duties
The Concessionaire shall during the Concession Period pay in a timely manner all taxes, duties,
levies, cess and charges including but not limited to income tax, GST, customs duty, etc. that
may be levied, claimed or demanded from time to time by any Government Authority including
any increase therein effected from time to time from any Government Authority, in respect of
the Project/ the Project Facilities and Services.
c. Insurance
i. Insurance Requirement
The Concessionaire should, at its cost and expense, purchase and maintain
insurances as are prudent, including but not limited to the following:
a. loss, damage or destruction of the Project Facilities and Services, at

replacement value;
b. comprehensive third party liability insurance including injury or death to

personnel of the Concessioning Authority and others who may enter the
Project Site or the Port’s Assets;
c. workmen’s compensation insurance;

d. marine cum storage cum erection insurance; and
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e. any other insurance that may be necessary to protect the Concessionaire,
its employees and its assets and the Concessioning Authority, its
employees and agents engaged in or connected to the Project and the
Project Site and Port Assets (against loss, damage or destruction at
replacement value) including all Force Majeure Events that are insurable
and not otherwise covered in items (a) to (d).
ii. Insurance Cover & Insurance Companies
The Concessionaire shall insure all insurable assets comprised in the Port’s Assets
and/or the Project Facilities and Services and all insurable risks associated with the
Project to the extent advisable in accordance with Good Industry Practice
(“Insurance Cover”).
iii. Evidence of Insurance Cover
The Concessionaire shall, from time to time, provide to the Concessioning Authority
copies of all insurance policies (or appropriate endorsements, certifications or other
satisfactory evidence of insurance) obtained by the Concessionaire in accordance
with this Agreement.
iv. Application of Insurance Proceeds
All money received under insurance policies shall be promptly applied by the
Concessionaire towards repair or renovation or restoration or substitution of the Port
Assets and the Project Facilities and Services or any part thereof which may have
been damaged or destroyed and in respect of which the claim is lodged. The
Concessionaire shall carry out such repair or renovation or restoration or substitution
to the extent possible in such manner that the Project Facilities and Services or any
part thereof, shall, after such repair or renovation or restoration or substitution be as
far as possible in the same condition as they were before such damage or destruction,
normal wear and tear excepted.
v. Validity of the Insurance Cover
The Concessionaire shall pay the premium payable on such insurance policy(ies) so
as to keep the policy(ies) in force and valid throughout the Concession Period and
furnish copies of the same to the Concessioning Authority. Each insurance policy
shall provide that the same shall not be cancelled or terminated unless 10 (ten) Days’
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clear notice of cancellation is provided to the Concessioning Authority in writing. If
at any time the Concessionaire fails to purchase and maintain in full force and effect
any and all of the insurances required, the Concessioning Authority may at its option
purchase and maintain such insurance and all sums incurred by the Concessioning
Authority shall be reimbursed with interest @ 18% per annum by the Concessionaire
forthwith on demand, failing which the same shall be recovered by the
Concessioning Authority by exercising right of set off or otherwise.
vi. Waiver of Subrogation
All insurance policies procured in terms of the provisions hereof shall include a
waiver of any right of subrogation of the insurers there under against, interalia, the
Concessioning Authority and its assigns and successors and their respective
subsidiaries, affiliates, employees and of any right of the insurers of any set-off or
counterclaim or any other deduction, whether by attachment or otherwise, in respect
of any liability of any such person insured under any such policy or in any way
connected with any loss, liability or obligation covered by such policies of insurance.
d. Indemnification
The Concessionaire shall during the pendency of this Agreement and thereafter until all claims
and demands in respect to the acts and omissions during the period of the Agreement as
described hereunder are duly settled, indemnify and keep indemnified and otherwise save
harmless, the Concessioning Authority, its agents and employees, from and against all claims,
demands made against and/or loss caused and/or damages suffered and/or cost,
charges/expenses incurred to and/or penalty levied and/or any claim due to injury to or death
of any person and/or loss or damage caused or suffered to property owned or belonging to the
Concessioning Authority, its agents and employees or third party as a result of any acts, deeds
or thing done or omitted to be done by the Concessionaire or as a result of failure on the part
of the Concessionaire to perform any of its obligations under this Agreement or on the
Concessionaire committing breach of any of the terms and conditions of this Agreement or on
the failure of the Concessionaire to perform any of its duties and/or obligations including
statutory duties or as a consequence of any notice, action, suit or proceedings, given, initiated,
filed or commenced by consignee or owner of goods or vessel owner/agent or its employees or
any third party or Government Authority or as a result of any failure or negligence or default
of the Concessionaire or its Contractor(s), sub-contractor(s), or employees, servants, agents of
such Contractor(s) and/or sub-contractor(s) and/or invitees as the case may be, in connection
with or arising out of this Agreement and/or arising out of or, in connection with the
Concessionaire’s use and occupation of the Project Site or Port’s Assets and/or operation and
maintenance of the Project Facilities and Services.
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e. Engagement of Contractors
The Concessionaire may engage any Person possessing the requisite skill, expertise and
capability for operation and maintenance of the Project Facilities and Services.
Provided:
i. the Concessionaire shall at all times be solely responsible for all its obligations under
this Agreement notwithstanding any such engagement and anything contained in any
Project Contracts or any other agreement, and no default under any Project Contract or
agreement shall excuse the Concessionaire from its obligations or liability hereunder
and the Concessionaire shall at all times be solely responsible for non-performance or
for any defect, deficiency or delay in installation of the structures/equipment or any part
thereof and for the operation and maintenance of the Project/the Project Facilities and
Services in accordance with the provisions of this Agreement;
ii. the Concessionaire should have obtained requisite security clearance if required for the
Contractor the Concessionaire intends to engage;
iii. the Concessionaire shall ensure that the Project Contracts contain provisions that entitle
the Concessioning Authority to step into such contract in its sole discretion in
substitution of the Concessionaire in the event of termination or suspension of this
Agreement; and
iv. any contract that it enters with an Affiliate in respect of the Project shall be on an arms
length basis.
f. Change in Ownership
The Concessionaire shall not undertake or permit any Change in Ownership, except with the
prior written approval of the Authority.
Notwithstanding anything to the contrary contained in this Agreement, the Concessionaire

agrees and acknowledges that:
i. all acquisitions of Equity by an acquirer, either by himself or with any person acting in
concert, directly or indirectly, including by transfer of the direct or indirect legal or
beneficial ownership or control of any Equity, in aggregate of 25% (twenty five per
cent) or more of the total Equity of the Concessionaire; or
48
ii. acquisition of any control directly or indirectly of the Board of Directors of the
Concessionaire by any person either by himself or together with any person or persons
acting in concert with him:
shall constitute a Change in Ownership requiring prior approval of the Authority from
national security and public interest perspective, the decision of the Authority in this
behalf being final, conclusive and binding on the Concessionaire, and undertakes that
it shall not give effect to any such acquisition of Equity or control of the Board of
Directors of the Concessionaire without such prior approval of the Authority. For the
avoidance of doubt, it is expressly agreed that approval of the Authority hereunder shall
be limited to national security and public interest perspective, and the Authority shall
endeavor to convey its decision thereon expeditiously. It is also agreed that the
Authority shall not be liable in any manner on account of grant or otherwise of such
approval and that such approval or denial thereof shall not in any manner absolve the
Concessionaire from any liability or obligation under this Agreement.
For the purposes of this Clause:
1. the expression “acquirer”, “control” and “person acting in concert” shall have the
meaning ascribed thereto in the Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeover) Regulations, 2011 or any
statutory re-enactment thereof as in force as on the date of acquisition of Equity, or
the control of the Board of Directors, as the case may be, of the Concessionaire;
2. the indirect transfer or control of legal or beneficial ownership of Equity shall mean
transfer of the direct or indirect beneficial ownership or control of any company or
companies whether in India or abroad which results in the acquirer acquiring
control over the shares or voting rights of shares of the Concessionaire; and
3. power to appoint, whether by contract or by virtue of control or acquisition of

shares of any company holding directly or through one or more companies
(whether situated in India or abroad) the Equity of the Concessionaire, not less than
half of the directors on the Board of Directors of the Concessionaire or of any
company, directly or indirectly whether situated in India or abroad, having ultimate
control of 25% (twenty five per cent) or more of the Equity of the Concessionaire
shall constitute acquisition of control, directly or indirectly, of the Board of
Directors of the Concessionaire.
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g. Condition Survey
The Concessionaire agrees that at least 6 (six) Months prior to the expiry by efflux of time of
the Concession Period, it shall, cause to be conducted at its cost by an Expert appointed by the
Parties by mutual consent, a condition survey and an inventory of the entire Project Facilities
and Services. If, as a result of such survey, the Expert shall observe/notice that the Port’s Assets
and/or the Project Facilities and Services or any part thereof have/has not been operated and
maintained in accordance with the requirements therefore under this Agreement (normal wear
and tear accepted) the Concessionaire shall, at its cost and expenses, take all necessary steps to
put the same in good working condition well before the Transfer Date. In the event the
Concessionaire fails to comply with this provision, the Concessioning Authority may itself
cause the condition survey and inventory of the Port’s Assets and Project Facilities and
Services to be conducted and remove any defect or deficiency. The Concessioning Authority
shall be promptly reimbursed by the Concessionaire for the costs incurred in conducting such
survey and preparation of inventory as also in putting the Project Facilities and Services in a
good working condition.
11.2. Of the Concessioning Authority
a. Assistance in obtaining Approvals, Permits and Licenses
The Concessioning Authority shall, at the written request of the Concessionaire, but without
guarantees and/or without assuming any responsibility in that behalf, issue recommendatory
letters and make best efforts to assist the Concessionaire in obtaining all the Applicable Permits
including renewals thereof. Provided that, nothing contained in this clause shall relieve the
Concessionaire of its obligations under this Agreement to obtain the Applicable Permits and to
keep them in force and effect throughout the Concession Period.
b. General rights of inspection and verification
The Concessioning Authority may during the pendency of this Agreement itself or by
appointment of Experts verify the performance of obligations of the Concessionaire as set out
in this Agreement.
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11.3. Of the Concessioning Authority and the Concessionaire
a. Compliance with Laws and Regulations
The Parties shall perform their respective obligations under this Agreement in accordance with
the Applicable Laws and Applicable Permits.
b. Rights to Documents
i. The Concessioning Authority’s Documents
Documents and computer programs or copies thereof, if any, provided by the

Concessioning Authority to the Concessionaire, shall always remain the property
of the Concessioning Authority. Such documents, computer programs and/or
copies shall not be used by the Concessionaire for the purposes other than for the
Project. Such documents, computer programs and/or copies thereof shall, unless
otherwise agreed upon by the Concessioning Authority, be returned by the
Concessionaire to the Concessioning Authority on the Transfer Date.
ii. Concessionaire’s Documents
Documents and computer programs provided by the Concessionaire, or which are

developed (and owned by the Concessionaire) for operation and/or maintenance of
the Project /the Project Facilities and Services shall be handed over by the
Concessionaire to the Concessioning Authority free of cost on the Transfer Date.
iii. Confidentiality
All confidential information and documents (whether financial, technical or

otherwise) provided by either Party to the other shall not, unless compelled by law
or the process of a Government Authority, be disclosed to any Person without the
consent of the other Party with the exception of providing such information to legal
advisors/auditors of the concerned party on a need-to-know basis. This covenant
shall survive the Concession Period.
iv. Obligation to Cooperate
The Parties shall mutually cooperate with each other in order to achieve the
objectives of this Agreement.
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ARTICLE 12
CHANGE IN LAW
12.1. Change in Law
“Change in Law” means any of the following events which has a Material Adverse Effect:
i. adoption, promulgation, modification, reinterpretation or repeal after the date of this

Agreement by any Government Authority of any statute, rule, ordinance, regulation or
order, treaty, convention, directive, guideline, policy having force of law; or
ii. the imposition by any Government Authority of any material condition (other than a
condition which has been imposed as a consequence of a violation by the
Concessionaire of any Applicable Permit) in connection with the issuance, renewal or
modification of any Applicable Permits after the date of this Agreement which renders
the performance by the Concessionaire of any of the terms of this Agreement impossible
or unviable; or
iii. any Applicable Permit previously granted, ceasing to remain in full force and effect for
reasons other than breach/violation by or the negligence of the Concessionaire or if
granted for a limited period, being renewed on terms different from those previously
stipulated.
Provided any (i) imposition of new taxes, duties, cess and the like and/or the increase
in taxes, duties, cess and the like effected from time to time by any Government
Authority, and/or (ii) imposition of standards and condition of operations, maintenance
and safety arising out of a new or revised Environmental Law; and/or (iii) imposition
of standards and terms of employment and working conditions of labourers and
workmen; and/or (iii) any rules or regulations stipulated by Concessioning Authority or
other regulatory authority having jurisdiction over the Project in respect of the standards
of service shall not constitute a Change in Law.
12.2. The Concessionaire’s Remedy
i. In the event of Change in Law the Concessionaire may propose to Concessioning

Authority modifications to the relevant terms of this Agreement which are reasonable
and intended to mitigate the effect of the Change in Law. Thereupon, the Parties shall,
in good faith, negotiate and agree upon suitable changes in the terms of this Agreement
including extension of the Concession Period, so as to place the Concessionaire in
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substantially the same legal and financial position as it were prior to such Change in
Law. Provided however, that if the resultant Material Adverse Effect is such that this
Agreement is frustrated or is rendered illegal or impossible of performance, the Change
in Law shall be deemed to be a Political Event, whereupon the provisions with respect
thereto shall apply.
ii. Upon occurrence of a Change in Law, the Concessionaire shall notify Concessioning
Authority, of the following:
1. The particulars, nature and the impact of Change in Law on the Project;
2. In sufficient detail, the estimate of the Additional Cost likely to be incurred
by the Concessionaire on account of the Change in Law; and
3. The measures, which the Concessionaire has taken or proposes to take to
mitigate the impact of Change in Law, including in particular, minimizing
the Additional Cost.
iii. Upon receipt of the notice of Change in Law issued by the Concessionaire pursuant to
the preceding sub-article (b), Concessioning Authority and the Concessionaire shall
hold discussions and take all such steps as may be necessary including
determination/certification by an Expert, appointed by the Parties by mutual consent,
of the Additional Cost and to determine the quantum of the Additional Cost to be
incurred.
iv. Notwithstanding the aforesaid, if in terms of Good Industry Practice, the event
constituting a Change in Law could be insured, the Concessionaire shall not be entitled
to any remedy under Article 12.2;
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ARTICLE 13
FORCE MAJEURE
13.1. Force Majeure Event
Force Majeure Event means the occurrence of any of the Non-Political Events, the Political
Events or the Other Events in India, set out in Article 13.2, 13.3 and 13.4 respectively including
the impact / consequence thereof which :
a. is beyond the control of the Party claiming to be affected thereby (the “Affected
Party”);
b. prevents the Affected Party from performing or discharging its obligations under this
Agreement; and
c. the Affected Party has been unable to overcome or prevent despite exercise of due care
and diligence.
13.2. Non-Political Events
Any of the following events which prevent the Affected Party from performing any of its
obligations for a continuous period of not less than 7 (seven) Days from the date of its
occurrence, shall constitute a Non-Political Event:
a. act of God, epidemic, earthquake, cyclone, flood, volcanic eruption, chemical or

radioactive contamination or ionizing radiation, fire or explosion (to the extent of
contamination or radiation or fire or explosion originating from a source external to the
Project Site and by reasons not attributable to the Concessionaire or the Contractor or
any of the employees or agents of the Concessionaire or the Contractor);
b. strikes or boycotts (other than those involving the Concessionaire, Contractors or their
respective employees/representatives, or attributable to any act or omission of any of
them), and not being an Other Event set forth in Article 13.4, labour disruptions or any
other industrial disturbances not arising on account of the acts or omissions of the
Concessionaire or the Contractor;
c. any failure or delay of a Contractor caused by any of the Non-Political Events, for which
no offsetting compensation is payable to the Concessionaire or on behalf of the
Contractor;
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d. the discovery of geological conditions, toxic contamination or archaeological remains
on the Project Site that could not reasonably have been expected to be discovered
through a site inspection; or
e. any event or circumstance of a nature analogous to any of the foregoing.
13.3. Political Events
Any of the following events shall constitute Political Event:
a. Change in Law for which no relief is provided under the provisions of Article 12,
resulting in Material Adverse Effect;
b. action of a Government Authority having Material Adverse Effect including but not
limited to (i) acts of expropriation, compulsory acquisition or takeover by any
Government Authority of the Project/Project Facilities and Services or any part thereof
or of the Concessionaire’s or the Contractor’s rights under any of the Project Contracts,
and (ii) any unlawful, unauthorized or without jurisdiction refusal to issue or to renew
or the revocation of any Applicable Permits, in each case, for reasons other than the
Concessionaire’s or the Contractor’s breach or failure in complying with the Project
Requirements, Applicable Laws, Applicable Permits, any judgment or order of a
Governmental Agency or of any contract by which the Concessionaire or the Contractor
as the case may be is bound;
c. early determination of this Agreement by Concessioning Authority for reasons of

national emergency, national security or the public interest;
d. any failure or delay of a Contractor caused by any of the aforementioned Political

Events, for which no offsetting compensation is payable to the Concessionaire by or on
behalf of the Contractor; or
13.4. Other Events
Any of the following events which prevents the Affected Party from performing any of
its obligations under this Agreement for a continuous period of not less than 7(seven)
days from the date of its occurrence, shall constitute the Other Event:
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a. an act of war (whether declared or undeclared), invasion, armed conflict or act of
foreign enemy, blockade, embargo, riot, insurrection, terrorist or military action,
civil commotion or politically motivated sabotage;
b. industry wide or State wide strikes or industrial action;
c. any civil commotion, boycott or political agitation which prevents collection of Fee
by the Concessionaire;
d. any judgment or order of a court of competent jurisdiction or statutory authority in

India made against the Concessionaire or the Contractor in any proceedings which
is non-collusive and duly prosecuted by the Concessionaire; and any judgment or
order of a court of competent jurisdiction or statutory authority in India made against
the Concessionaire or the Contractor in any proceedings which is non-collusive and
duly prosecuted by the Concessionaire other than relating to proceedings (i) pursuant
to failure of the Concessionaire to comply with any Applicable Law or Applicable
Permit, or (ii) on account of breach of any Applicable Law or Applicable Permit or
of any contract, or (iii) enforcement of this Agreement or (iv) with respect to
exercise of any of its rights under this Agreement by Concessioning Authority; or
13.5. Notice of Force Majeure Event
a. The Affected Party shall give written notice to the other Party in writing of the
occurrence of any of the Force Majeure Event (the “Notice”) as soon as the same
arises or as soon as reasonably practicable and in any event within 7 (seven) Days
after the Affected Party knew, or ought reasonably to have known, of its occurrence
and the adverse effect it has or is likely to have on the performance of its obligations
under this Agreement.
b. The Notice shall inter-alia include full particulars of:
(i) the nature, time of occurrence and extent of the Force Majeure Event with
evidence in respect thereof;
(ii) the duration or estimated duration and the effect or probable effect which such
Force Majeure Event has or will have on the Affected Party’s ability to perform
its obligations or any of them under this Agreement;
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(iii) the measures which the Affected Party has taken or proposes to take, to alleviate
the impact of the Force Majeure Event or to mitigate the damage; and
(iv) any other relevant information.
c. So long as the Affected Party continues to claim to be affected by a Force Majeure

Event, it shall provide the other Party with periodic (fortnightly/monthly) written
reports containing the information called for by Article 13.5 (b) and such other
information as the other Party may reasonably request.
13.6. Period of Force Majeure
Period of Force Majeure shall mean the period from the time of occurrence specified in
the Notice given by the Affected Party in respect of the Force Majeure Event until the
earlier of:
a. expiry of the period during which the Affected Party is excused from performance
of its obligations in accordance with Article 13.7 or
b. termination of this Agreement pursuant to Article 13.10 hereof.
13.7. Resumption of Performance
During the period of Force Majeure, the Affected Party shall in consultation with the
other Party, make all reasonable efforts to limit or mitigate the effects of the Force
Majeure Event on the performance of its obligations. The Affected Party shall also make
efforts to resume performance of its obligations under this Agreement as soon as possible
and upon resumption shall notify the other Party of the same in writing. The other Party
shall afford all reasonable assistance to the Affected Party in this regard.
13.8. Performance Excused
The Affected Party, to the extent rendered unable to perform its obligations or part
thereof under this Agreement as a consequence of the Force Majeure Event shall be
excused from performance of the obligations. Provided that, the excuse from
performance shall be of no greater scope and of no longer duration than is reasonably
warranted by the Force Majeure Event. Provided further, nothing contained herein shall
absolve the Affected Party from any payment obligations accrued prior to the occurrence
of the underlying Force Majeure Event.
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13.9. Costs, Revised Timetable
(a) Costs
Each Party shall bear its costs, if any, incurred as a consequence of the Force Majeure
Event.
(b)Extension of time/period
The Affected Party shall be granted by the other Party, extension of time specified in
this Agreement for the performance of any obligation by such period not exceeding
the period during which the relative performance was affected by the Force Majeure
Event. Such extension may include extension of the Concession Period by
Concessioning Authority in appropriate cases if permissible under Applicable Law.
13.10. Termination Due to Force Majeure Event
If the period of Force Majeure continues or is in the reasonable judgment of the Parties
likely to continue beyond a period of 120 (one hundred and twenty) Days, the Parties
may mutually decide to terminate this Agreement or continue this Agreement on
mutually agreed revised terms. If the Parties are unable to reach an agreement in this
regard, the Affected Party shall after the expiry of the said period of 120 (one hundred
and twenty ) Days be entitled to terminate the Agreement in which event, the provisions
of Article 15 and Article 16 shall, to the extent expressly made applicable, apply.
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ARTICLE 14
EVENTS OF DEFAULT
14.1. Events of Default
Event of Default means the Concessionaire Event of Default or the Concessioning

Authority Event of Default or both as the context may admit or require.
a. The Concessionaire Event of Default
The Concessionaire Event of Default means any of the following events unless such
an event has occurred as a consequence of the Concessioning Authority Event of
Default or a Force Majeure Event:
i. the Concessionaire’s failure to perform or discharge any of its obligations in

accordance with the provisions of this Agreement;
ii. Delay in payments to the Concessioning Authority for 2 (two) consecutive

Months or more than (5) (five) times in the aggregate during the Concession
Period;
iii. the Concessionaire’s failure to perform or discharge any of its obligations

under any other Project Contract, which has or is likely to affect the Project/the
Project Facilities and Services, materially;
iv. the Concessionaire fails to achieve Minimum Guaranteed Cargo for a

consecutive period of 3 (three) years. Provided, the Concessionaire shall not
be deemed to be in default if such non achievement is due to a substantial
change in economic policies including the policy regarding import/export of a
particular commodity as a result of which the throughput could not be
achieved;
v. any representation made or warranties given by the Concessionaire under this

Agreement is found to be false or misleading;
vi. the Concessionaire passing a resolution for voluntary winding up;
vii. appointment of a provisional liquidator, administrator, trustee or receiver of

the whole or substantially whole of the undertaking of the Concessionaire by
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a court of competent jurisdiction in proceedings for winding up or any other
legal proceedings;
viii. levy of an execution or destraint on the Concessionaire’s assets which has or

is likely to have Material Adverse Effect and/or affect the Project/Project
Facilities and Services, materially and such execution or destraint remaining
in force for a period exceeding 90 ( ninety) Days;
ix. the Security Deposit / Performance Guarantee is not maintained in terms of the
provisions hereof;
x. the Concessionaire abandons or expresses its intention to revoke/terminate this

Agreement without being entitled to do so as is expressly provided in this
Agreement;
xi. a change in shareholding such that the beneficial interest of the Applicant in
the Concessionaire reduces below the limits set in Article 9.2 and/or
Management Control of the Concessionaire has occurred in contravention of
the provisions of Article 9 hereof;
xii. amalgamation of the Concessionaire with any other company or reconstruction

or transfer of the whole or part of the Concessionaire’s undertaking other than
transfer of assets in the ordinary course of business in contravention with the
provisions of Article 9 hereof; and
xiii. the Concessionaire engaging or knowingly allowing any of its employees,

agents, Contractor or representative to engage in any activity prohibited under
this Agreement and/or by law or which constitutes a breach of this Agreement
or breach of or an offence under any law, in the course of any activity
undertaken pursuant to this Agreement.
b. The Concessioning Authority Event of Default
i. The Concessioning Authority’s failure to perform or discharge its obligations

in accordance with the provisions of this Agreement unless such failure has
occurred as a consequence of any Concessionaire Event of Default or a Force
Majeure Event.
ii. any representation made or warranties given by the Concessioning Authority

under this Agreement is found to be false or misleading.
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iii. appointment of a provisional liquidator, administrator or receiver of the whole
or part of the Port’s Assets in any legal proceedings initiated against the
Concessioning Authority (unless such proceedings are initiated as a
consequence of any Concessionaire Event of Default).
iv. levy of an execution or destraint on the Port’s Assets in any proceedings

against the Concessioning Authority (unless such proceedings are initiated as
a consequence of any Concessionaire Event of Default) which has or is likely
to have Material Adverse Effect and such execution or destraint remaining in
force for a period exceeding 90 (ninety) Days.
14.2. Parties Rights
i. Upon the occurrence of the Concessionaire Event of Default, the

Concessioning Authority shall without prejudice to any other rights and
remedies available to it under this Agreement be entitled to terminate this
Agreement.
ii. Upon the occurrence of the Concessioning Authority Event of Default, the
Concessionaire shall without prejudice to any other rights and remedies
available to it under this Agreement be entitled to terminate this Agreement.
Provided that before proceeding to terminate this Agreement, the Party entitled to do so
shall give due consideration and shall have due regard to the nature of the underlying
Event of Default, its implication on the performance of the respective obligations of
Parties under this Agreement and the circumstances in which the same has occurred.
14.3. Consultation Notice
Either Party exercising its right under Article 14.2, shall issue to the other Party a notice
in writing specifying in reasonable detail the underlying Event of Default(s) and
proposing consultation amongst the Parties to consider possible measures of curing or
otherwise dealing with the underlying Event of Default (“Consultation Notice”).
14.4. Remedial Process
Following the issue of Consultation Notice by either Party, within a period not exceeding
90 (ninety) Days or such extended period as the Parties may agree (“Remedial Period”)
the Parties shall, endeavour to arrive at an agreement as to the manner of rectifying or
remedying the underlying Event of Default. Without prejudice to this, if the underlying
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event is a Concessionaire Event of Default, the Concessioning Authority shall endeavour
to arrive at an agreement as to one or more of the following measures and/or such other
measures as may be considered appropriate by them in the attendant circumstances:
i. the change of management or control/ownership of the Concessionaire;
ii. the replacement of the Concessionaire by a new operator (“Selectee”)
14.5. Obligations during Remedial Period
During the Remedial Period, the Parties shall continue to perform their respective
obligations under this Agreement which can be performed, failing which the Party in
breach shall compensate the other Party for any loss or damage occasioned or suffered
on account of the underlying failure/breach.
14.6. Revocation of Consultation Notice
If during the Remedial Period the underlying Event of Default is cured or waived or the
Parties agree upon any of the measures set out in Article 14.4, the Consultation Notice
shall be withdrawn in writing by the Party who has issued the same.
14.7. Termination due to Events of Default
If before the expiry of the Remedial Period, the underlying Event of Default is neither
cured nor waived nor the Parties have agreed upon any of the measures in accordance
with Article 14.4, the Party who has issued the Consultation Notice shall have the right
to terminate this Agreement, in which event, the provisions of Article 15 and Article 16
shall, to the extent expressly made applicable, apply.
14.8. The Concessioning Authority ’s Rights of Step-in
Upon a Termination Notice being issued due to Concessionaire Event of Default, the
Concessioning Authority may, at its discretion
i. re-enter upon and take possession and control of Project Site/Project Facilities
and Services forthwith;
ii. prohibit the Concessionaire and any Person claiming through or under
the Concessionaire from entering upon/dealing with the Project Facilities and
Services;
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iii. step in and succeed upon selection by the Concessioning Authority without the
necessity of any further action by the Concessionaire, to the interests of the
Concessionaire under such of the Project Contracts as the Concessioning
Authority may in its discretion deem appropriate with effect from the date of
communication of such selection to the counter party to the relative Project
Contracts.
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ARTICLE 15
TERMINATION OF THE CONCESSION/AGREEMENT
15.1. Termination Procedure
The Party entitled to terminate this Agreement either on account of a Force Majeure
Event or on account of an Event of Default shall do so by issue of a notice in writing
(“Termination Notice”) to the other Party. The Termination Notice shall be of not less
than 90 (ninety) Days and not ordinarily be more than 180 (one hundred and eighty)
Days, (“Termination Period”) and at the expiry of the Termination Period, this
Agreement shall stand terminated without any further notice.
15.2. Obligations during Termination Period
During Termination Period, the Parties shall subject where applicable to the provisions
of this Article 15, continue to perform such of their respective obligations under this
Agreement which are capable of being performed with the object, as far as possible, of
ensuring continued availability of the Project Facilities and Services to the users, failing
which the Party in breach shall compensate the other Party for any loss or damage
occasioned or suffered on account of the underlying failure/breach.
15.3. Requisition
The Concessionaire has no right and no compensation is payable by the Concessioning

Authority, upon issue or receipt as the case may be of Termination Notice, either as a
consequence of a Force Majeure Event or as a consequence of a Concessionaire Event of
Default, or otherwise 6 (six) months prior to the expiry of the Concession Period, the
Concessioning Authority shall by a notice in writing (“Requisition”) call upon the
Concessionaire to furnish the following information to enable the Concessioning
Authority to estimate the likely compensation payable by the Concessioning Authority
to the Concessionaire and/or to finalise the items of Concessionaire’s assets comprised
in the Project Facilities and Services to be handed over to/taken over by the
a. Data or records including test certificates, survey reports, inspection reports, records
of maintenance, statutory certificates issued regarding the operation and
maintenance of the Project Facilities and Services;
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b. Specifications regarding the Concessionaire’s assets comprised in the Project
Facilities and Services; and
c. Cargo traffic, daily output of jetty or any other information or records regarding
Concessionaire, its business, the Project/Project Facilities and Services, assets and
liabilities.
d. The Concessionaire shall within a period of 30 (thirty) Days of receipt of

Requisition, furnish the particulars called for by the Concessioning Authority.
15.4. Condition Survey
a. The Concessionaire agrees that on the service of a Termination Notice or at least 6

(six) months prior to the expiry of the Concession Period, as the case may be, it
shall conduct or cause to be conducted under the Concessioning Authority’s
supervision, a condition survey of the Project Facilities and Services including the
Project Site and/or the Port’s Assets to ascertain the condition thereof, verifying
compliance with the Concessionaire’s obligations under this Agreement and to
prepare an inventory of the assets comprised in the Project Facilities and Services.
During this period, the designated key personnel of the Concessioning Authority
shall be associated with the operations of the Project Facilities and Services (except
when the same is impossible due to a Force Majeure Event) in order to facilitate
smooth takeover of the same by the Concessioning Authority on the Transfer Date.
b. If, as a result of the condition survey, the Concessioning Authority shall

observe/notice that the Project Site and/or the Port’s Assets and/or the Project
Facilities and Services or any part thereof have/has not been operated and
maintained in accordance with the requirements thereof under this Agreement
(normal wear and tear excepted) the Concessionaire shall, at its cost and expenses,
take all necessary steps to put the same in good working conditions well before the
Transfer Date.
c. In the event the Concessionaire fails to comply with the provisions of this
Agreement, the Concessioning Authority may itself cause the condition survey and
inventory of Port’s Assets and the Project Facilities and Services to be conducted.
the Concessioning Authority shall be compensated by the Concessionaire for any
costs incurred in conducting such survey and preparation of inventory as also in
putting the Project Facilities and Services in good working condition.
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15.5. Consequences of Termination
Without prejudice to any other consequences or requirements under this agreement or

under any law:
a. the Concessionaire shall transfer all the assets and rights upon expiry of the
Concession Period by efflux of time or termination of this Agreement due to a Force
Majeure Event or on account of an Event of Default in accordance with Article 18;
b. the Concessioning Authority shall be entitled to encash any subsisting bank

guarantee(s) provided by the Concessionaire against any amounts owing to
Concessioning Authority by the Concessionaire.
Notwithstanding anything contained in this Agreement, except for ensuring the deposit of
the compensation payable to the Concessionaire in accordance with Article 16 in the
Escrow Account, the Concessioning Authority shall not, as a consequence of termination
or otherwise, have any obligation whatsoever to any third party including but not limited
to obligations as to compensation for loss of employment, continuance or regularization
of employment, absorption or reemployment on any ground, in relation to any person in
the employment of or engaged by the Concessionaire in connection with the Project, and
the handback of the Project Site/Port Assets/Project Facilities & Services by the
Concessionaire to the Concessioning Authority shall be free from any such obligation.
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ARTICLE 16
COMPENSATION
16.1. Compensation
i. Termination due to Force Majeure Event
If the termination is due to a Force Majeure Event no compensation shall be payable

by either parties. The Concessionaire shall take back the movable assets and other
assets created shall be dealt with as in Article 6.3, 6.4, 6.7, 6.8.
ii. Termination due to Concessionaire Event of Default
If the termination is due to a Concessionaire Event of Default, the Performance

Guarantee amount remitted by the Concessionaire will be forfeited.
iii. Termination due to Concessioning Authority Event of Default
If the termination is due to Concessioning Authority Event of Default, the book

value of the additional immovable assets if any created will be paid by
Concessioning Authority and the cost of movable assets shall be paid as per Article
6.4. No other compensation shall be payable.
16.2. No Compensation on Expiry of Concession Period
In the event of expiry of Concession by efflux of time (the Concession having run its full
course), the Concessionaire shall hand over/ transfer peaceful possession of the Project
Site, Port’s Assets and the Project Facilities and Services free of cost and Encumbrance.
16.3. Transfer Fee and Charges
Transfer costs, stamp duties, notary fees and taxes, if applicable, for the transfer of the
Project Facilities and Services consequent to the expiry or termination of this Agreement
shall be borne by:
i. the Concessionaire in the event of expiry of Concession Period or termination due

to a Concessionaire Event of Default;
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ii. Concessioning Authority in the event of termination due to Concessioning
Authority Event of Default or Political Event; and
iii. by both parties equally in case of termination due to Change in Law or Non Political
Event or Other Event.
16.4. Delayed Payment of Compensation
If for any reasons, other than those attributable to the Concessionaire, Concessioning
Authority fails to pay the compensation on the Transfer Date, Concessioning Authority
shall be liable to pay interest @12% per annum thereon from the Transfer Date till
payment thereof. Provided, nothing contained in this clause shall be deemed to authorise
any delay in payment of compensation in accordance with this Agreement.
16.5. Delayed Transfer of Assets
If for any reasons other than those attributable to Concessioning Authority the
Concessionaire fails to transfer assets, rights and contracts on the Transfer Date in
accordance with Article 15.5 read with Article 18, there shall be no suspension of the
operation and maintenance of the Project Facilities and Services and the Concessionaire
shall, as a trustee of Concessioning Authority, (a) continue to operate and maintain the
Project Facilities and Services or such of them, as directed by Concessioning Authority
until completion of the relative transfer formalities and (b) account for and pay to
Concessioning Authority the Gross Revenue minus operating costs and statutory dues,
from such operations. In the event of failure to do so, the Concessionaire shall be liable
to pay to Concessioning Authority, for every Day of delay, liquidated damages computed
at the rate of the average daily profits earned during the 3 (three) years immediately
preceding the Transfer Date. Parties confirm that this is a true and correct estimate of
damages and not in the nature of a penalty. Provided nothing contained in this clause
shall be deemed or construed to authorise delay in completion of formalities of transfer
of assets, rights and contracts by the Concessionaire to Concessioning Authority in
accordance with the requirements thereof under this Agreement.
In case the transfer of assets by the Concessionaire to Concessioning Authority is delayed

for reasons attributable to Concessioning Authority, the Concessionaire shall nonetheless
continue to operate the Project Facilities and Services but as agent of Concessioning
Authority. Provided however, the Concessionaire shall be liable to pay Fees and Charges
in accordance with Article 7.
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16.6. Remedies Cumulative
The exercise of right by either Party to terminate this Agreement, as provided herein,
shall not preclude, such Party from availing any other rights or remedies that may be
available to it under law. All remedies available to the Parties shall be cumulative and
the exercise or failure thereof of one or more remedies by any Party shall not limit or
preclude the exercise of or constitute a waiver of any other remedies by such Party.
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ARTICLE 17
ASSIGNMENT AND CHARGES
17.1. Restrictions on assignment and charges
i. Subject to Article 17.2, this Agreement shall not be assigned by the Concessionaire
to any person, save and except with the prior consent in writing of the Authority,
which consent the Authority shall be entitled to decline without assigning any
reason.
ii. Subject to the provisions of Article 17.2, the Concessionaire shall not create nor
permit to subsist any Encumbrance, or otherwise transfer or dispose of all or any of
its rights and benefits under this Agreement or any Project Agreement to which the
Concessionaire is a party, except with prior consent in writing of the Authority,
which consent the Authority shall be entitled to decline without assigning any
reason.
17.2. Permitted assignment and charges
The restraints set forth in Article 17.1 shall not apply to:
i. liens arising by operation of law in the ordinary course of business of the Project;
ii. Liens or encumbrances required by any Applicable Law.
17.3. Assignment by the Authority
Notwithstanding anything to the contrary contained in this Agreement, the Authority

may, after giving 60 (sixty) days’ notice to the Concessionaire, assign and/ or transfer
any of its rights and benefits and/or obligations under this Agreement to an assignee who
is, in the reasonable opinion of the Authority, capable of fulfilling all of the Authority’s
then outstanding obligations under this Agreement.
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ARTICLE 18
TRANSFER ON EXPIRY OF THE CONCESSION PERIOD
18.1. General Scope of Transfer/Payment
The Parties shall perform/discharge their respective obligations to be performed or

discharged under the provisions of this Agreement on the Transfer Date in entirety.
Without prejudice to the generality of this provision and the provisions of Article 15, the
transactions to be consummated and the formalities to be completed by the Parties on the
Transfer Date shall be as set out in Article 18.2 and 18.3.
18.2. Concessionaire’s Obligations
The Concessionaire shall;
iii. hand over peaceful possession of the Project Site, Port’s Assets, the Project and the
Project Facilities and Services free of Encumbrance;
iv. transfer all its rights, titles and interests in the assets comprised in the Project
Facilities and Services which are required to be transferred to the Concessioning
Authority in accordance with this Agreement and execute such deeds and
documents as may be necessary for the purpose and complete all legal or other
formalities required in this regard;
v. hand over to the Concessioning Authority all documents including built drawings
if any, manuals and records relating to operation and maintenance of the Project
Facilities and Services;
vi. transfer technology and up-to-date know-how relating to operation and maintenance
of the Port’s Assets and/or the Project Facilities and Services;
vii. transfer or cause to be transferred to the Concessioning Authority any Project

Contracts which are (i) valid and subsisting; (ii) capable of being transferred to the
Concessioning Authority; and (iii) those the Concessioning Authority has chosen to
take over, and cancel or cause to be cancelled such Project Contracts not transferred
to the Concessioning Authority. For this purpose, the Concessionaire shall ensure
that all Project Contracts are assignable in favor of the Concessioning Authority
without any further action on part of the respective counterparties. The
Concessionaire shall entirely at its cost, terminate all such Project Contracts which
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are not transferred/assigned and/or are not required to be transferred/assigned to the
Concessioning Authority;
viii. at its cost, transfer to the Concessioning Authority all such Applicable Permits
which the Concessioning Authority may require and which can be legally
transferred. Provided if the termination is on account of the Concessioning
Authority Event of Default the cost of such transfer shall be borne/ reimbursed by
the Concessioning Authority;
ix. at its cost, remove within 90 (ninety) days from expiry of the Concession Period,
from the Project Site/Port’s Assets, any moveable assets that are not taken over by
or not to be transferred to the Concessioning Authority in terms of the provisions of
this Agreement.
18.3. Concessioning Authority’s Obligations
Except in the event of expiry of the Concession by efflux of time, the Concessioning
Authority shall pay compensation payable to the Concessionaire in accordance with
Article 16 to the Concessionaire. The Concessionaire confirms that upon such payment
being made, the Concessioning Authority shall stand duly discharged of its obligations
regarding payment of compensation under this Agreement.
The Concessionaire further confirms that payment of compensation by the

Concessioning Authority in accordance with this Article 16 shall be a valid discharge to
the Concessioning Authority in respect of the Concessioning Authority’s obligation
regarding payment of compensation to the Concessionaire under this Agreement.
18.4. Risk
Until transfer in accordance with this Article 18, the Port’s Assets and the Project
Facilities and Services shall remain at the sole risk of the Concessionaire except for any
loss or damage caused to or suffered by the Concessionaire due to any act or omission or
negligence on the part of the Concessioning Authority under this Agreement.
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ARTICLE 19
DISPUTE RESOLUTION
19.1. Dispute Resolution Board
A Dispute Resolution Board (DRB) shall be formed in order to resolve the disputes that
may arise during the currency of this Agreement. The members of the DRB shall be
nominated by the Concessioning Authority and the Concessionaire. If any party is not
satisfied with the decision of DRB, the issue shall be referred for Arbitration.
19.2. Arbitration
a. The issues not resolved by DRB shall be referred for arbitration. The arbitrator shall
be selected by the Concessionaire from the panel of arbitrators approved by the
Concessioning Authority within 15 days from the date of receipt of the letter from
the Concessioning Authority along with the panel. If there is no reply from the
Concessionaire within 15 days, the Concessioning Authority shall choose any of the
arbitrators from the panel of arbitrators referred to above. The remuneration for the
arbitrator and other expenses shall be shared equally by the Concessioning Authority
and the Concessionaire.
b. The venue of the Arbitration shall be at the Head office of the Concessioning
Authority at Chennai. The decision of the Arbitrator shall be final and binding on
both the parties to the Arbitration.
c. The Arbitrator may with the mutual consent of the parties, extend the time for
making the award. The award to be passed by the Arbitrator is enforceable in the
Court at Chennai city only.
d. The fees for arbitrator shall be paid as per schedule 4 of Arbitration and
Conciliation Act, 1996.
73
ARTICLE 20
REPRESENTATIONS AND WARRANTIES
20.1. Representations and Warranties of the Concessionaire
The Concessionaire represents and warrants to the Concessioning Authority that:
a. it is duly organised, validly existing and in good standing under the laws of India
and hereby expressly and irrevocably waives any immunity in any jurisdiction in
respect of this Agreement or matters arising thereunder including any obligation,
liability or responsibility hereunder;
b. it has full power and authority to execute, deliver and perform its obligations under
this Agreement;
c. it has taken all necessary action to authorize the execution, delivery and
performance of this Agreement;
d. this Agreement constitutes the legal, valid and binding obligation of the
Concessionaire, enforceable against it in accordance with the terms hereof;
e. there are no actions, suits or proceedings pending or to its best knowledge,

threatened against or affecting it before any court, administrative body or arbitral
tribunal which might materially and adversely affect its ability to meet or perform
any of its obligations under this Agreement;
f. it has the financial standing and capacity to undertake the Project in accordance with
the terms of this Agreement;
g. the execution, delivery and performance of this Agreement will not conflict with,
result in the breach of, constitute a default under, or accelerate performance required
by any of the terms of its memorandum of association and articles of association or
any Applicable Laws or any covenant, contract, agreement, arrangement,
understanding, decree or order to which it is a party or by which it or any of its
properties or assets is bound or affected;
h. it has no knowledge of any violation or default with respect to any order, writ,
injunction or decree of any court or any legally binding order of any Government
Authority which may result in any Material Adverse Effect on its ability to perform
74
its obligations under this Agreement and no fact or circumstance exists which may
give rise to such proceedings that would adversely affect the performance of its
obligations under this Agreement;
i. it has complied with Applicable Laws in all material respects and has not been
subject to any fines, penalties, injunctive relief or any other civil or criminal
liabilities which in the aggregate have or may have a Material Adverse Effect on its
ability to perform its obligations under this Agreement;
j. all its rights and interests in the Project/Project Facilities and Services shall vest in
the Concessioning Authority on the Transfer Date free and clear of all liens, claims
and Encumbrances, without any further act or deed on its part or that of the
Concessioning Authority, and that none of the Project Assets shall be acquired by
it,
subject to any agreement under which a security interest or other lien or

Encumbrance is retained by any person, save and except as expressly provided in
this Agreement;
k. no representation or warranty by it contained herein or in any other document

furnished by it to the Concessioning Authority including the Bid or to any
Government Authority in relation to Applicable Permits contains or will contain
any untrue or misleading statement of material fact or omits or will omit to state a
material fact necessary to make such representation or warranty not misleading;
l. no sums, in cash or kind, have been paid or will be paid, by it or on its behalf, to
any person by way of fees, commission or otherwise for securing the Concession or
entering into this Agreement or for influencing or attempting to influence any
officer or employee of the Concessioning Authority in connection therewith;
m. agrees that the execution, delivery and performance by it of this Agreement and all
other agreements, contracts, documents and writings relating to this Agreement
constitute private and commercial acts and not public or governmental acts; and
n. consents generally in respect of the enforcement of any judgement against it in any

proceedings in any jurisdiction to the giving of any relief or the issue of any process
in connection with such proceedings.
75
20.2. Representations and Warranties of the Concessioning Authority
The Concessioning Authority represents and warrants to the Concessionaire that:
a. it is duly organised, validly existing and in good standing under the laws of India;
b. it has full power and authority to execute, deliver and perform its obligations under
this Agreement;
c. it has taken all necessary action to authorise the execution, delivery and
performance of this Agreement;
d. this Agreement constitutes the legal, valid and binding obligation of the
Concessioning Authority, enforceable against it in accordance with the terms
hereof; and
e. there are no actions, suits or proceedings pending or to its best knowledge,

threatened against or affecting it before any court, administrative body or arbitral
tribunal which might materially and adversely affect its ability to meet or perform
any of its obligations under this Agreement.
20.3. Disclosure
In the event that any occurrence or circumstance comes to the attention of either Party
that renders any of its aforesaid representations or warranties untrue or incorrect, such
Party shall immediately notify the other Party of the same. Such notification shall not
have the effect of remedying any breach of the representation or warranty that has been
found to be untrue or incorrect nor shall it adversely affect or waive any obligation of
either Party under this Agreement.
76
ARTICLE 21
MISCELLANEOUS PROVISIONS
21.1. Survival of Obligations
Any cause of action which may have occurred in favour of either Party or any right which
is vested in either Party under any of the provisions of this Agreement during the
Concession Period as the case may be as a result of any act, omission, deed, matter or
thing done or omitted to be done by either Party before the expiry of the Concession
Period by efflux of time or otherwise in accordance with the provisions of this Agreement
shall survive the expiry of the Concession Period/ termination of this Agreement.
21.2. Articles to survive Termination
The provisions of Articles 15 to 21 shall, to the fullest extent necessary to give effect
thereto, survive the Concession Period/the termination of this Agreement and the
obligations of Parties to be performed/discharged following the termination/early
determination of this Agreement shall accordingly be performed/discharged by the
Parties.
21.3. Joint Responsibility
In the event that any damage is caused partly due to the negligence or default or omission
on the part of the Concessioning Authority and partly due to the negligence or default or
omission on the part of the Concessionaire, each Party shall be liable to the other Party
only in the proportion to its respective degree of negligence or default or omission, as the
case may be.
21.4. Several Obligations
Nothing contained in this Agreement shall be construed to create an association, trust,

partnership, agency or joint venture among the Parties and Parties shall be liable to
perform their respective duties and discharge their respective liabilities or obligations in
accordance with the provisions of this Agreement.
21.5. Severability
If for any reason whatsoever any provision or any part(s) of this Agreement is held or
shall be declared to be void or illegal or invalid under present or future laws or regulations
77
effective and applicable during the Concession Period, by any competent arbitral tribunal
or court, and if such provisions shall be fully separable and this Concession shall be
constructed as if such provision or such part(s) of this Agreement never comprised part
of this Agreement and the remaining provisions of this Agreement shall remain in full
force and effect and shall not be affected by such void or illegal or invalid provision or
by its severance from this Agreement.
21.6. Notices
Unless otherwise stated, notices to be given under this Agreement including but not
limited to a notice of waiver of any term or related or breach of any term of this
Agreement shall be in writing and shall be given by hand delivery, recognized
international courier, mail, telex or facsimile transmission and delivered or transmitted
to the Parties at their respective addresses set forth below:
The Concessioning Authority:
VICE CHAIRMAN & CHIEF EXECUTIVE OFFICER
TAMIL NADU MARITIME BOARD

NO. 171, SOUTH KESAVAPERUMAL PURAM
OFF GREENWAYS ROAD,
RAJA ANNAMALAIPURAM
CHENNAI - 600 028
The Concessionaire:
or such other address, telex number, or facsimile number as may be duly notified by the
respective Parties from time to time, and shall be deemed to have been made or delivered
(i) in the case of any communication made by letter, when delivered by hand, by
recognized international courier or by mail (registered, return receipt requested) at that
address and (ii) in the case of any communication made by telex or facsimile, when
transmitted properly addressed to such telex number or facsimile number.
78
21.7. Waiver
No waiver of any term or condition or of the breach thereof by any Party shall be valid
unless expressed in writing and signed by such Party and communicated by such Party
to the other Party in accordance with the provisions of Article 21.6 of this Agreement. A
waiver by any Party of any term or condition or breach thereof in a given case shall not
be deemed or construed as a general waiver of such term or condition or the breach in
the future or waiver of any other terms or conditions or breach of this Agreement.
21.8. Amendments, Modifications or Alterations.
No amendments, modifications or alterations of or any additions to the terms and

conditions of this Agreement shall be valid unless the same be in writing and agreed to
by the Parties.
21.9. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the
Republic of India and courts having territorial jurisdiction over the Project shall have
jurisdiction over all matters relating to or arising out of this Agreement.
21.10. Jurisdiction of the Court
Any dispute arising out of non-fulfilment of any of the terms and conditions of this
Agreement or any other dispute arising out of the arbitration award will be subject to the
jurisdiction of the Courts in the City of Chennai only.
21.11. Entire Agreement
This Agreement and the Appendices together constitute a complete and exclusive
statement of the terms of the agreement between the Parties. All prior written or oral
understandings, offers or other communications of every kind pertaining to this
Agreement unless specifically retained in this Agreement and the Appendices, by
reference or otherwise, are abrogated and withdrawn.
IN WITNESS WHEREOF, the Parties, intending to be legally bound, have caused this
Agreement on the dates indicated next to their signatures below:
79
APPENDIX 1
PROJECT SITE
80
APPENDIX 2
PORT’S ASSETS
S.No. Name Of Structure Year of Area/ Length Book Value
Construction
(1) Existing Infrastructure (In Rupees)
1 Port Office building for Administrative Officer and Toilet block for 1976 360 M2 2,38,500
staff
2 Cargo Shed No.1 1982 725 M2 5,50,000
3 Cargo Shed No.2 1983 725 M2 6,72,510
4 Cargo Shed No.3 1985 725 M2 8,65,655
5 Old Wharf 1986 205 M 30,00,000
Sub-Total 53,26,665
(2) New Infrastructure
1 North and South Breakwater 2015-16 North Side= 130 m 10,05,00,000
South Side = 210 m
2 Extension of both North and South Breakwater 2020 -21 North Side= 215 m 41,87,09,648
South Side = 420 m
3 Wharf -I 2020 -21 120 X 21 m 30,33,66,000
4 Wharf -II 2020 -21 120 X 21 m 30,39,56,940
5 Captial Dredging (Channel Depth:9-10 metres) 2020 -21 1873476 Cum 46,79,19,365
Sub-Total 159,44,51,953
GRAND D TOTAL 159,97,78,618
81
APPENDIX 3
PROJECT REQUIREMENTS
1 Operations & Maintenance Standards:
Repairs, Maintenance and Replacement
The Concessionaire at its own cost promptly and diligently maintain, replace or restore
any of the project facilities or part thereof which may be lost, damaged, destroyed or worn
out.
While carrying out the repairing, maintaining and replacing the project facilities, the
Concessionaire acknowledges and accepts that it is holding and maintaining the
concession or assets, project facilities in trust for eventual transfer to the Concessioning
Authority on termination of the agreement and therefore, will not do any act as a result of
which the value of Port Assets and Project Facilities and Services is diminished.
The Concessionaire shall, at all times during the Concession Period, at its own risk, cost,
charges and expenses, performance and pay for maintenance repairs, renewals and
replacement of various type of assets and equipment in the concessionaire premises and
/or the project or any parts thereof, whether due to use and operations or due to
deterioration of materials and /or parts, so that on the expiry or termination of Concession,
the same shall except normal wear and tear be in good working condition as it were at the
time of commencement of the Concession.
While carrying out the repair, maintenance and replacement of the project facilities, the
Concessionaire shall carry out the work in accordance with the manufacturer’s
recommendations and the relevant latest Indian Standards or in its absence ISO/OISD
Standards. In the event that the concessionaire, by necessity or otherwise need to follow
any other country standard and it shall be equal or superior to the standard specified above.
The repairs and maintenance shall generally conform to the following specifications.
Maintenance Standards
ISO 4308-1-2003 Maintenance of lifting appliances
ISO 4309-2004 Cranes wire rope care, maintenance and discard
IS 13367: Part 1 : 1992 Safe use of cranes – Code of Practice Part 1 General
82
BS 7121-2-2003 Code of Practice for safe use of cranes,
inspection, testing & examination
Code of Practice for safe use of cranes (Lorry
BS 7121-4-1997 Loaders)
Code of Practice for safe use of cranes (Tower
BS 7121-5-2006 Cranes)
2 Safety Standards
The Concessionaire shall ensure compliance with the safety standards set out under
Applicable Law/international conventions, as relevant, from time to time including those
required under the following:
1. Dock Workers (Safety, Health and Welfare) Act, 1986 & Regulations framed
thereunder of 1990.
2. The Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989.
3. The Petroleum Act, 1934 along with the Petroleum Rules, 2002.
4. OISD – Guidelines – 156 (Oil Industry Safety Directorate): Fire Protection

Facilities for Port Oil Terminals.
5. The Explosives Act, 1884 along with The Explosive Substance Act, 1983 &
The Explosive Rules, 1983
6. Guidelines by Fire Advisor, CCE & DG FASLI, Government of India
7. National Fire Codes (National Fire Protection Association – USA)
8. Drill Manual for the Fire Services of India.
9. International Safety Guide for Oil Tankers & Terminals.
10. ISPS (International Ship & Port Facility Security) Code (2003 Edition as
amended)
11. SOLAS / MARPOL CONVENTION as amended
12. International Maritime Dangerous Goods Code
13. Certification by Navigational Safety in Ports Committee (NSPC)
83
APPENDIX 4
CARGO CHARGES
Cargo Charges approved by TNMB
84

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CONCESSION AGREEMENT

TAMIL NADU MARITIME BOARD

MARKETING, OPERATION & MAINTENANCE

2. _____________________ , a special purpose company incorporated under the Companies

3. ……………………….<name of Selected Bidder> having its registered office at

A. The Concessioning Authority is desirous of selecting a port operator for marketing,

B. The Concessioning Authority vide Tender No.____________________dated ______

DEFINITIONS AND INTERPRETATION

“Additional Auditor” has the meaning ascribed to it in Article 7.3.

“Agreement” means this agreement as of date hereof, including Appendices 1 through 4 as

“Appendix” means the schedules, supplements or documents, appended to this Agreement.

“Applicant” means M/s __________________.

“Board” means Tamil Nadu Maritime Board.

“Concession” means the Concession granted by the Concessioning Authority to the

“Consultation Notice” has the meaning ascribed to it in Article 14.3.

“Encumbrance” means any encumbrance such as mortgage, charge, pledge, lien,

“GoI” means the Government of India.

“Month” means the calendar month as per the Gregorian calendar.

“Project Requirements” means the minimum requirements as to the operation and

“Quarter” means a period of 3 (three) Months.

“Remedial Period” has the meaning ascribed to it in Article 14.4.

“Requisition” has the meaning ascribed to it in Article 15.3.

“Statutory Auditors” means a firm of chartered accountants appointed in terms of Section

(a) maritime access channels;

(b) port entrance;

“The Port” means Cuddalore Port.

In this Agreement unless the context otherwise requires:

d. the words “include” and “including” are to be construed without limitation;

f. any reference to day shall mean a reference to a calendar day;

g. any reference to month shall mean a reference to a calendar month;

j. any agreement, consent, approval, authorization, notice, communication, information or

1.3. Measurements and Arithmetic Conventions

1.4. Ambiguities and Discrepancies

SCOPE OF THE PROJECT

2.1. Scope of the Project

b. Performance and fulfilment of all other obligations of the Concessionaire in accordance

CONCESSION AND PORT ASSETS

In consideration of the Concessionaire agreeing to pay to the Concessioning Authority the

3.2 Concession Period

b. in the event of an early termination/determination of the Concession/ this Agreement by

3.3 Acceptance of the Concession

a. In consideration of the Concessionaire agreeing to perform and discharge its obligations as

3.5 Use of Port’s Assets

3.6 Information about Project Site and Port’s Assets

3.7 Acceptance of the Port Assets

3.8 Peaceful Occupation

4.1. Conditions Precedent

a. The following Conditions Precedent shall be satisfied by the Concessionaire:

i. Furnishing of the Performance Guarantee as stipulated in Article 5.1 hereof;

ii. Furnishing of copies (certified as true copies by a director of the

iii. Furnishing of all resolutions adopted by the Board of Directors of the

v. Furnishing a certificate from its principal officer/director on the shareholding

e. The following Conditions Precedent shall be satisfied by the Concessioning Authority:

5.1 Performance Guarantee

OPERATIONS & MAINTENANCE

6.1 Operation & Maintenance

i. Berth and Terminal Operations:

The Concessionaire shall:

b. Make efforts to maximize cargo handled so as to achieve optimal utilization of the

B. The Concessioning Authority vide Tender No.______________dated