<p data-path-to-node="5" id="p-rc_00f7ad69c63d2e2e-32" style="font-family: &quot;Google Sans Text&quot;, sans-serif !important; line-height: 1.15 !important;">The protracted legal and contractual dispute over unpaid dues amounting to more than <b data-path-to-node="5" data-index-in-node="111" style="line-height: 1.15 !important;">₹2,057 crore</b> between <b data-path-to-node="5" data-index-in-node="132" style="line-height: 1.15 !important;">V.O. <span class="citation-85" style="line-height: 1.15 !important;">Chidambaranar (VOC) Port Authority</span></b><span class="citation-85" style="line-height: 1.15 !important;"> and </span><b data-path-to-node="5" data-index-in-node="176" style="line-height: 1.15 !important;">PSA SICAL Terminals Limited</b><span class="citation-85" style="line-height: 1.15 !important;"> has been officially referred to the </span><b data-path-to-node="5" data-index-in-node="240" style="line-height: 1.15 !important;">Conciliation and Settlement Committee (CSC)</b><span class="citation-85 citation-end-85" style="line-height: 1.15 !important;"> under the Ministry of Ports, Shipping and Waterways for an out-of-court resolution.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="1" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515="" style="line-height: 1.15 !important;"> <source-inline-chip _ngcontent-ng-c652880515="" _nghost-ng-c3947949641="" class="ng-star-inserted" style="line-height: 1.15 !important;"><!----><!----><!----><!----><!----></source-inline-chip><!----><!----><!----></sources-carousel-inline></p><p data-path-to-node="6" id="p-rc_00f7ad69c63d2e2e-33" style="font-family: &quot;Google Sans Text&quot;, sans-serif !important; line-height: 1.15 !important;"><span class="citation-84 citation-end-84" style="line-height: 1.15 !important;">The dispute stems from a 30-year concession awarded in 1998 to PSA SICAL a joint venture majority-owned by Singapore-based global terminal giant PSA International to operate the container terminal at Berth 7 of VOC Port (Tuticorin), which ended with the operator's premature exit.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="2" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515="" style="line-height: 1.15 !important;"> <source-inline-chip _ngcontent-ng-c652880515="" _nghost-ng-c3947949641="" class="ng-star-inserted" style="line-height: 1.15 !important;"><!----><!----><!----><!----><!----></source-inline-chip><!----><!----><!----></sources-carousel-inline></p><h3 data-path-to-node="8" style="font-family: &quot;Google Sans&quot;, sans-serif !important; line-height: 1.15 !important;">Key Operational Highlights &amp; Dispute Evolution</h3><ul data-path-to-node="9" style="padding-inline-start: 32px; font-family: &quot;Google Sans Text&quot;, sans-serif !important; line-height: 1.15 !important;"><li style="line-height: 1.15 !important;"><p data-path-to-node="9,0,0" id="p-rc_00f7ad69c63d2e2e-34" style="line-height: 1.15 !important;"><b data-path-to-node="9,0,0" data-index-in-node="0" style="line-height: 1.15 !important;">Escalating Royalty Structure:</b> <span class="citation-83 citation-end-83" style="line-height: 1.15 !important;">Under the original 1998 Public-Private Partnership (PPP) agreement, the royalty per TEU was structured to increase by 20% annually.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="3" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span> <span class="citation-82 citation-end-82" style="line-height: 1.15 !important;">As the contractual royalty fee rose significantly over the concession life, PSA SICAL argued that regulated tariffs fixed by the erstwhile Tariff Authority for Major Ports (TAMP) made the escalating royalty model commercially unviable.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="4" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515="" style="line-height: 1.15 !important;"> <source-inline-chip _ngcontent-ng-c652880515="" _nghost-ng-c3947949641="" class="ng-star-inserted" style="line-height: 1.15 !important;"><!----><!----><!----><!----><!----></source-inline-chip><!----><!----><!----></sources-carousel-inline></p></li><li style="line-height: 1.15 !important;"><p data-path-to-node="9,1,0" id="p-rc_00f7ad69c63d2e2e-35" style="line-height: 1.15 !important;"><b data-path-to-node="9,1,0" data-index-in-node="0" style="line-height: 1.15 !important;">Protracted Legal Battles:</b> <span class="citation-81 citation-end-81" style="line-height: 1.15 !important;">The concessionaire sought to transition the contract from a fixed royalty-per-TEU model to a gross revenue-share model through arbitration under a "change in law" claim.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="5" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span> <span class="citation-80 citation-end-80" style="line-height: 1.15 !important;">However, the Madras High Court and subsequently the Supreme Court of India set aside the arbitral award in 2021, affirming that arbitrators cannot rewrite the core commercial terms of a contract.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="6" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515="" style="line-height: 1.15 !important;"> <source-inline-chip _ngcontent-ng-c652880515="" _nghost-ng-c3947949641="" class="ng-star-inserted" style="line-height: 1.15 !important;"><!----><!----><!----><!----><!----></source-inline-chip><!----><!----><!----></sources-carousel-inline></p></li><li style="line-height: 1.15 !important;"><p data-path-to-node="9,2,0" id="p-rc_00f7ad69c63d2e2e-36" style="line-height: 1.15 !important;"><b data-path-to-node="9,2,0" data-index-in-node="0" style="line-height: 1.15 !important;">Cumulative Dues and Terminal Handover:</b> <span class="citation-79 citation-end-79" style="line-height: 1.15 !important;">The port authority calculates total outstanding royalty payments, accumulated interest, and contractual penalties at over ₹2,057 crore.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="7" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span> <span class="citation-78 citation-end-78" style="line-height: 1.15 !important;">The terminal operator exited and shut the facility in February, following which VOC Port Authority took back physical possession of the berth.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="8" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515="" style="line-height: 1.15 !important;"> <source-inline-chip _ngcontent-ng-c652880515="" _nghost-ng-c3947949641="" class="ng-star-inserted" style="line-height: 1.15 !important;"><!----><!----><!----><!----><!----></source-inline-chip><!----><!----><!----></sources-carousel-inline></p></li><li style="line-height: 1.15 !important;"><p data-path-to-node="9,3,0" id="p-rc_00f7ad69c63d2e2e-37" style="line-height: 1.15 !important;"><b data-path-to-node="9,3,0" data-index-in-node="0" style="line-height: 1.15 !important;">Settlement Panel Engagement:</b> <span class="citation-77 citation-end-77" style="line-height: 1.15 !important;">The matter has been referred to the Gopal Krishna-led Conciliation and Settlement Committee (CSC) to broker a mediated resolution, address overlapping petitions before the Supreme Court and Arbitral Tribunals, and establish a clear roadmap for recovering port revenues.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="9" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515="" style="line-height: 1.15 !important;"> <source-inline-chip _ngcontent-ng-c652880515="" _nghost-ng-c3947949641="" class="ng-star-inserted" style="line-height: 1.15 !important;"><!----><!----><!----><!----><!----></source-inline-chip><!----><!----><!----></sources-carousel-inline></p></li><li style="line-height: 1.15 !important;"><p data-path-to-node="9,4,0" id="p-rc_00f7ad69c63d2e2e-38" style="line-height: 1.15 !important;"><b data-path-to-node="9,4,0" data-index-in-node="0" style="line-height: 1.15 !important;">Impact on VOC Port Modernization:</b> <span class="citation-76 citation-end-76" style="line-height: 1.15 !important;">Resolving the legacy dispute is critical for VOC Port as it advances large-scale capital expansion, including the development of the Outer Harbour project and the conversion/re-mechanization of berths under updated PPP guidelines.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c4109436689="" style="line-height: 1.15 !important;"><sup _ngcontent-ng-c4109436689="" class="superscript" data-turn-source-index="10" style="line-height: 1.15 !important; font-size: 16px !important; background-color: transparent !important;"><!----></sup></source-footnote></span><sources-carousel-inline ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c652880515="" style="line-height: 1.15 !important;"></sources-carousel-inline></p></li></ul>