**Executive Summary**
This office memorandum, issued by the Government of India's Ministry of Shipping on January 31st, 2018, outlines modified procedures for security clearance of bidders for Public-Private Partnership (PPP) projects, including dredging projects, in major ports. The updated guidelines, approved by the Cabinet Committee on Security on January 3rd, 2018, aim to streamline the award process while ensuring security. These guidelines are effective immediately.
**Key Points / Main Content**
* **Purpose**: To streamline procedures for security clearance of bidders for Public Private Partnership (PPP) projects in Major Ports and non-major/private ports.
* **Approval**: The modified guidelines were approved by the Cabinet Committee on Security (CCS) on 3.1.2018, and also mentions guidelines for processing the security clearance approved by CCS on 10.11.2017.
* **Dredging Projects:**
* The Ministry of Shipping will share a list of dredging companies/bidders with the Ministry of Home Affairs, Ministry of Defence, and Ministry of External Affairs to seek security inputs.
* Security agencies must provide their inputs within 12 weeks.
* Security clearance is valid for five years for a particular port.
* Dredging companies must communicate changes in management control or shareholding (more than 10%) to the Ministry of Shipping within two weeks, failing which the security clearance can be withdrawn. The Ministry of Shipping has one month to report such changes to the security agencies.
* Separate approval is required for changes in equipment/vessels involving foreign origin or engagement of foreign personnel.
* **Port Projects under PPP Mode:**
* The Ministry of Shipping will share a list of companies/bidders with the Ministry of Home Affairs, Ministry of Defence, and Ministry of External Affairs to seek security inputs.
* Security agencies must provide inputs within 12 weeks, and price bids will not be opened until security clearance is granted.
* The Ministry of Shipping will prepare and circulate a list of all Indian and foreign companies who normally bid for port projects to the concerned security agencies, who will provide their inputs within 12 weeks.
* Security clearance is valid for five years, subject to specified conditionalities.
* Companies must report changes in management control or shareholding (more than 10%) to the Ministry of Shipping/concerned Port within two weeks, or risk withdrawal of security clearance.
* Clearance for foreign personnel is to be obtained from the Ministry of Home Affairs.
* **Harmonisation and Validity**: The validity period of security clearance for PPP and dredging projects will align with guidelines issued by the MHA.
* **Non-Major Ports**: States/UTs must seek security inputs for PPP projects in non-major/private ports.
* **Inter-Ministerial Committee**: An Inter-Ministerial Committee chaired by the Secretary, Ministry of Home Affairs, will address delays in security input from agencies.
**Impact Analysis**
**Ministry of Shipping**
* **Impact:** The Ministry will be responsible for implementing the modified procedures for security clearance. It will coordinate with various security agencies and communicate necessary information to bidders and state governments.
* **Action Required:** Ensure strict compliance with the new guidelines and coordinate effectively with other ministries and stakeholders.
**Dredging Companies / Bidders for Port Projects**
* **Impact:** The guidelines will affect the process of bidding for PPP projects in Major Ports. The stakeholders have new obligations.
* **Action Required:** Comply with the new reporting requirements and ensure timely communication of any changes in management control or shareholding to the Ministry of Shipping.
**State Governments/UTs/State Maritime Boards**
* **Impact:** The impact of these guidelines is that the State Maritime Boards will need to follow the modified procedure.
* **Action Required:** Follow the procedure when processing projects in non-major/minor/private ports under their jurisdiction.
**Security Agencies (MHA, Defence, External Affairs)**
* **Impact:** The guidelines impose a time constraint for inputs.
* **Action Required:** Provide timely security inputs within the stipulated timeframe (12 weeks) to facilitate efficient project clearances.
**Major Port Trusts**
* **Impact:** The Major Port Trusts need to comply with the guidelines.
* **Action Required:** Ensure that the contract with the dredging company includes a provision to share the information regarding the award of the dredging project including particulars of the vessels and the foreign personnel with MHA, MEA and MoD.
Key Entities Referenced
Ministry of Shipping: The central ministry responsible for implementing the security clearance procedures outlined in the policy for PPP and dredging projects in major ports.
Cabinet Committee on Security: Approved the modified guidelines prepared for the procedure to be followed for security clearance for bidders in respect of port projects under PPP mode.
Ministry of Home Affairs: One of the key ministries consulted for security inputs on bidders for port projects; chairs the Inter-Ministerial Committee to ascertain causes of delay.
Public Private Partnership (PPP): A key project delivery method, specifically for port and dredging projects which are the subject of the security clearance procedures described.
Major Ports: The policy focuses on streamlining security clearance procedures for PPP and dredging projects within major ports.
F. No.240 1 81 121201 4-SCC
Government of India
Ministry of Shipping
Ports Wing
Transport Bhawan,
1, Parliament Street,
New Delhi - 110 001
Date: 3,1.1 January ,2018
L
oFFtcE MEM9RANDUU
Subject:- Streamlining of procedures in the award of public private
Partnership(PPP) projects in the Major Ports - Modified procedure to be
followed for security clearance in respect of bidders - Reg.
*******
The undersigned is directed to say that Cabinet Committee on Security in its
meeting held on 3.1.2018 has approved the modified guidelines prepared for the
procedure to be followed for security clearance for bidders in respect of port projects
under PPP mode including dredging projects in Major Ports and the same is
foruuarded herewith for strict compliance with immediate effect.
2.
All State Governments/UTs/State Maritime Boards may follow the para 8 of
the above guidelines strictly with immedidte effect in respect of non-major ports/minor
ports/private ports under their jurisdiction.
lA.K. SARANI
Director
Tel. No. 011-23714714
Encl: as above
1.
Cabinet Secretariat (SGP Verghese, Director), Rashtrapati Bhawan, New
Delhi with reference to their OM No.620/1 1112017-TS dated 08.01 .2018.
2.
Cabinet Secretariat, (Shri Anil Dhasmana, Secretary (RAW)], Paryavaran
Bhawan, New Delh.
3.
Ministry of Home Affairs (Shri Mukesh Mangal, Director(lS.l), North Block,
New Delhi.
4.
Ministry of Defence [Smt Devika Raghuvanshi, Joint Secretary(Navy)] South
Block, New Delhi.5. Ministry of External Affairs (Shri A.K. Singh, Under Secretary), Jawahar Lal
Nehru Bhawan, Janpath, New Delhi.
6. National Security Council Secretariat, [Shri A P Golaya, Captain, Senior
Defence Specialist), 3'd Floor, Sardar patel Bhawan, Sansad Marg, New
Delhi.
'
7 Intelligence Bureau, (shri Anshul sharma, Director), 35, sardar patel
Marg,
8'
chairman, At Major port rrusts for strict compriance.
9.
CMD, Kamarajar port Limited for strict compliance.
10'
11' Managing Director, Indian ports Association, New Derhi.
chief secretary of all maritime states and UTs [west Bengal, odisha, Andhra
Pradesh, Tamil Nadu, Kera14 Karnataka, Goa, Maharashtra,
Gujarat,
Puducherry, Andaman & Nicobar lslands, Lakshadeep, Daman & Diu, Dadra
& Nagar Havelil.
Copv to:
(i) OSD to Hon'bte Minister of Shipping.
(ii) PS to Minister of State(Shipping) (pR),
( iii) PS to Minister of State(Shipping) (MM),
(iv) PS to Secretary(Shipping),
(v) PS to AS&FA/PS to Js(pypps to JS(s&A)/ps to
JS(sM)/ps
Adviser(Economic)/pS to Adviser (Transport)
(vi) Dir(D KR)/Di(SS)/D (AC)/DS(Acyco(p
i B)
(vii) us(sRD)/US(sc)/u s(s Kyus(RK)/uS(KBH)/uS(NK)/uS(RN)
(viii) PD'l/PD.lllPD.lll/PD.lV/PD.V/PD.Vll/Security
Ctearance Cell/ Sagarmata Cell
(ix) Nlc for uploading the security clearance Guidelines in the Ministry of
Shipping's website.GUIDELINES FOR PROCESSING THE SECURITY CLEARANCE OF BIDDERS
RESPECT OF PUBLIC PRIVATE IN
PARTNERSHIP (PPP)
PROJECTS
AND
DREDGING PROJECTS IN MAJOR PORTS AS APPROVED BY CCS ON 0.11.2017.
1
1'
In respect of Dredging projects, the Ministry of Shipping would share the list of
dredging companies/bidders
with the Ministry of Home Affairs, Ministry of Defence and
Ministry of External Affairs on a case to case basis for seeking security inputs. on
receipt of the details, security agencies would provide their inputs on such a list to
Ministry of shipping within 12(twelve) weeks. security crearance accorded to the
dredging companies would be valid for five years for a particular por1.
During this
period' the concerned dredging companies would communicate to the Ministry of
Shipping information regarding
(a)
In such cases, fresh security clearance shall be obtained. The dredging
companies will be bound to communicate the information on changes in
management control to the Ministry of shipping within two weeks and any
lapse can result in withdrawing the security clearance arready granted.
This information will be communicated to the security agencies by the
Ministry of shipping within one month of the change taking prace for
seeking fresh security clearance.
(b)
In such cases, the dredging companies will be bound to communicate
information on changes in shareholding of the company to the Ministry of
shipping within two weeks and any rapse can resurt in withdrawing the
security clearance already granted.
This information will be communicated to the security agencies by the
Ministry of shipping within one month of the change taking place. In case,as a result of any change in shareholding of the compa ny, if any security
concern is raised in the course of enquiry, the Ministry of shipping would
immediately take necessary action on the findings,
2'
Approval for any change in equipment or vessel involving foreign origin and
clearance for engagement of foreign personnel will be obtained from all
security
agencies' In this regard, Ministry of shipping would share all such information with the
Ministry of Home Affairs, Ministry of Defence and Ministry of Externat Affairs. lf
a
dredging company, which has already been cleared, wishes to bid for another port, it
would require clearance only from the Ministry of Defence/lndian Navy. However, the
information regarding award of the dredging project including particulars of the vessels
and the foreign personner shourd be shared with MHA, MEA and MoD.
These
provisions are also to be appropriately incorporated in the contract to be signed by
Major Ports with the selected dredging companies so that action could be initiated on
grounds of security considerations, if required.
3'
In respect of Port projects, the Ministry of shipping would share the list of
companies/bidders with the Ministry of Home Affairs, Ministry of Defence and Ministry of
External Affairs on a case to case basis for seeking security inputs. The security
agencies will provide the inputs within 12 weeks and price bids would not be opened till
security clearance is accorded by Ministry of Shipping.
4'
The Ministry of Shipping would also separately prepare and circulate a list of all
Indian and Foreign companies who normally bid for port projects to the concerned
security agencies. on receipt of the details, security agencies would provide their
inputs on such a list to Ministry of shipping within 12(twelve) weeks.
5'
Once security clearance is accorded by Ministry of Shipping to any company,
based on inputs from the relevant Ministries/Departments/ organizations for any port
project, such clearance in respect of the company would be valid for five years with the
following cond itionalities:-(i)
During this period, the concerned companies would communicate the
information to the Ministry of Shipping regarding:_
(a)
ln such cases, fresh security crearance shail be obtained.
The
concerned companies wourd be riabre to inform the above change
to the Ministry of Shipping/concerned port
within 2 weeks fairing
which the security crearance arready accorded can be withdrawn.
This information wiil be communicated to the security agencies by
the Ministry of shipping within one month of the change taking
place for seeking fresh security clearance.
(b)
In such cases, the concerned companies wourd be riabre to inform
the change in sharehording of the company to the Ministry of
shipping/concerned port within 2 weeks failing which the security
clearance already accorded can be withdrawn. This information will
be communicated to the security agencies by the Ministry of
shipping within one month of the change taking place. rn case, as
a
result of any change as mentioned above, if any security
concern is raised in the course of enquiry, the Ministry of
shipping would immediately take necessary action on the findings.
(ii)
clearance for engagement of foreign personner wiil be obtained from
Ministry of Home Affairs and this information would be shared with Ministry of
Defence, Ministry of External Affairs.
6'
To harmonise the validity period of security clearance for both ppp projects and
dredging projects in Major Ports with the guidelines issued by MHA from time to time,
Ministry of Shipping would follow the validity period of security clearance as prescribedby MHA from time to time as security clearance matter is under exclusive domain of
MHA' Any subsequent changes in the validity period of security clearance by MHA
would be adopted by Ministry of shipping with the approval of Minister in-charge of
Ministry of Shipping.
'
7 In case of any delay in receiving security inputs from the agencies concerned, an
Inter-Ministerial committee, chaired by secretary, Ministry of Home Affairs would
ascertain the cause of delay and take necessary action. The status would be reviewed
by the Empowered committee chaired by the cabinet secretary at regular intervals.
8'
As more than one third of India's shipping trade takes place through non-Major
Ports' security clearance is essential for non-Major ports, including private ports, set up
in Public Private Partnership(PPP) mode in the state sector due to the sensitiveness of
the Port sector' Accordingly, all states/UTs will arso have to seek necessary security
inputs for new projects being developed by them as per the provision of
these
guidelines' As all non-Major Ports are under the purview of concerned state
GovernmenuUT in which the port is situated, the state Maritime Boards/ state
Governments may apply to Ministry of Home Affairs, Ministry of Defence and Ministry of
External Affairs in Government of India to get security inputs on the bidders of the
projects at non-Major Ports and shall consider the inputs received from the security
agencies in consonance with the security clearance guidelines issued by MHA from
time to time' ln case of change in management control of company for both dredging
and port projects under PPP mode, fresh security clearance as per procedure laid down
at Para 1 and para 5 above will be required.