New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a revised policy for award of waterfront and associated land to port dependent industries (captive policy), introducing a series of reforms aimed at accelerating private investment through the public private partnership (PPP) model, improving operational flexibility and strengthening infrastructure development across India’s major ports, according to an official statement on Friday.
The revised policy updates the existing captive policy of 2016 by enabling existing captive users to expand capacity through new berths, jetties, terminals, and single buoy moorings (SBMs), while also providing a framework for extending concession agreements, awarding waterfront to eligible government entities and addressing changes arising from evolving business and regulatory conditions.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the revised policy reflects the government’s commitment to creating a predictable, transparent and investor-friendly framework for port-led industrial growth.
The policy will be implemented across all major ports for captive facilities and is expected to improve cargo throughput, optimise utilisation of waterfront assets and generate sustained revenue for ports without any financial implication for the Central government.
One of the key reforms allows major port authorities to renew or extend concession agreements of existing port-dependent industries (PDIs) for up to 30 years without requiring a fresh tender process. The renewal will be undertaken at either the prevailing market rate or the indexed revenue payable under the existing concession agreement, whichever is higher, protecting port revenues while providing long-term certainty to investors, the statement said.
The policy also creates a structured mechanism for capacity expansion by existing captive users. Major port authorities will undertake price discovery through competitive bidding, while providing the existing concessionaire a right of first refusal (RoFR) to match the highest bid. Participation will be restricted to eligible port-dependent industries handling the same cargo profile, ensuring competitive price discovery while maintaining operational continuity. To prevent misuse of the expansion route for extending concession tenure, the concession period for any additional berth or terminal developed under the expansion proposal will remain co-terminus with the maximum permissible concession period of the existing facility.
For the first time, the policy also provides a framework for awarding waterfront and associated land to eligible government organisations without resorting to competitive bidding, subject to availability and prescribed safeguards. Eligible entities include Central and state government departments, statutory authorities, autonomous bodies, Central and state public sector undertakings and government-controlled joint ventures operating in sectors such as fertilisers, food, petroleum, oil and gas, coal, steel and other sectors notified by the Ministry of Ports, Shipping and Waterways. The concessions will be awarded at the notified floor price, the statement said.
“The maritime sector operates in a dynamic global environment. This policy provides the flexibility needed to adapt to changing realities while ensuring continuity of investment, trade and port operations,” Sonowal said.
Recognising the evolving nature of global trade, the revised policy also introduces provisions for change in law and unforeseen events, allowing business plans and cargo profiles to be revised where regulatory changes or unforeseen circumstances affect project viability.
(IANS)
