The government on Wednesday formed a ministerial committee headed by finance minister Arun Jaitley to decide what to do with old, pre-existing projects in ports, which have become unviable.
Around 10 old projects, under the shipping ministry, have been stuck in non-profitability because operating under the contract conditions which existed a decade or so ago have kept them in a state of unviability for years. The government wants to address this legal tangle. The combined value of the projects is an estimated Rs 20,000 crore, shipping ministry officials said.
The four member committee, headed by Jaitley, also has shipping minister Nitin Gadkari, law minister Ravi Shankar Prasad and Niti Aayog vice chairman Rajiv Kumar.
“The committee will take a call on the projects on which we are unable to take decision on our own for various reasons. These are existing projects working under old model concession agreement conditions,” Gadkari told reporters Wednesday.