PSA SICAL Royalty Dispute Referred to Conciliation Committee.

₹2,057 crore royalty dispute enters settlement process as VOC Port seeks recovery.

The long-running royalty dispute between PSA SICAL Terminals and V.O. Chidambaranar (VOC) Port Authority has been referred to the Conciliation and Settlement Committee (CSC) for resolution. The port authority estimates unpaid royalty, interest and penalties at more than ₹2,057 crore. PSA SICAL operated the container terminal under a 30-year licence signed in 1998 but exited the facility in February 2025, three years before the contract ended. The dispute escalated after PSA SICAL secured a 2011 court order freezing its royalty payments at ₹1,969 per TEU, citing tariff restrictions and commercial losses. The Supreme Court rejected its “change in law” claim in 2021, after which VOC Port demanded outstanding dues. PSA SICAL later challenged the termination and raised concerns over the terminal’s 11.7-metre draft compared with a deeper adjacent berth. With related matters still pending before the Supreme Court and an arbitral tribunal, both sides have agreed to seek settlement through the CSC. Port employees, however, fear that the settlement could reduce recovery of dues needed for future development projects.