Context: Recently, the Union Ministry of Shipping launched ‘SAROD-Ports’ (Society for Affordable Redressal of Disputes - Ports) through virtual ceremony in New Delhi.
About SAROD-Ports

• It is a dispute redressal mechanism to facilitate affordable and timely resolution of disputes for the maritime sector.
• It has been established under the Societies Registration Act, 1860 for affordable and timely resolution of disputes in a fair manner.
• SAROD-Ports consists of members from the Indian Ports Association (IPA) and Indian Private Ports and Terminals Association (IPTTA).
• It will advise and assist in the settlement of disputes through arbitrations in the maritime sector, including ports and shipping sector in Major Port Trusts, Non-major Ports, including private ports, jetties, terminals and harbours.
• The mechanism is similar to the provision available in the highway sector in the form of SAROD-Roads constituted by the National Highways Authorities of India (NHAI).

Objectives of SAROD-Ports

• Affordable and timely resolution of disputes in a fair manner.
• Enrichment of Dispute Resolution Mechanism with the panel of technical experts as arbitrators.

Responsibilities

• SAROD-Ports will advise and assist in settlement of disputes through arbitrations in the maritime sector, including ports and shipping sector in Major Port Trusts, Non-major Ports, including private ports, jetties, terminals and harbors.
• It will also cover disputes between granting authority and Licensee/Concessionaire /Contractor.
• Also the disputes between Licensee/Concessionaire and their contractors arising out of and during the course of execution of various contracts.

Significance

• SAROD-Ports will inspire confidence in the private players and will ensure right kind of environment for our partners.
• It will promote ease of doing business in the maritime sector because of the fast, timely, cost effective and robust dispute resolution mechanism.

Background

• The Union Cabinet has approved amendments in the Model Concession Agreement (MCA) in January,2018 which envisaged constitution SAROD-PORTS as dispute resolution mechanism for PPP Projects in the Major Ports.

Model Concession Agreement

• Model Concession Agreement is the core of public private partnership projects in India.
• It sets regulatory framework to implement PPP (Public Private Projects) in India.
• There are MCAs for national highways, urban rail transit system, state highways and ports.