Pvt ports may need security check to employ foreigners

NEW DELHI: Security concern grips privatisation of Indian ports. Private ports operators may require to get security clearances for appointing foreigners on their port terminals.

The proposed Model Concession Agreement (MCA) on port sector has provided for strict screening norms for such appointments. The MCA has been proposed by the Planning Commission.

The MCA has addressed concerns of security agencies who fear that appointments of foreigners without proper scrutiny may pose security threats to vulnerable transit points like ports, sources in the commission said. The suggestion assumes significance in the light of recent spurt in terrorist activities.

The responsibility for verifying the credentials of foreign nationals would, however, lie with the concessionaire (private company running the port terminal), MCA said. The agreement is yet to be approved and adopted by the government. MCA is, however, not in favour of any blanket ban on employing foreign nationals in port projects.

It has suggested that the concessionaire should ensure credentials before recommending authorities to issue employment/residential visas and work permits.

The concessionaire has also been made responsible for ensuring that similar formalities are followed in case foreign nationals are employed by its contractors and sub-contractors participating in the PPP project. Considering the sensitive nature of ports, MCA has also suggested the government to monitor any change in ownership pattern of private ports.

It would be mandatory for concessionaires to get nod from regulatory authorities (including port trust) if there is a change in the equity pattern among promoters. The regulatory authority’s approval would be must for an entity to acquire 15% or more in the company. The decision of the port trust in this matter would be final and binding on the concessionaire.

The strict rules on the employment and ownership pattern in the MCA follows an earlier proposal where the government is exploring possibilities of keeping a tighter leash on investments from neighbouring countries like Pakistan, Bangladesh, Sri Lanka, and China in infrastructure projects like airports and ports.

A new system is being considered where antecedents of all companies participating in PPP projects would be verified.