Gujarat govt refutes Congress’ allegations of favouring Adani group in port policy

The Bharatiya Janata Party (BJP)-led Gujarat government on Wednesday denied allegations that its proposed policy favours the Adani group, asserting that the policy will be applicable to all port operators equally.

The government’s statement refuted Congress leader Jairam Ramesh’s claims that the government is favouring the Adani group in its proposed policy. Additionally, it clarified that there is no maximum permissible period of 50 years for granting concessions to port operators, contrary to what Ramesh claimed in his post on X.

“Gujarat has been a leader in the maritime sector and currently handles the largest number of cargoes in the country. Based on the BOOT Policy 1997, Gujarat Maritime Board (GMB) has entered into various concession agreements with an initial period of 30 years and with a provision for further extension afterwards for the development of ports through private and joint sector mode,” statement read, PTI reported.

The Gujarat government claimed the proposed policy covers ports including Pipavav, Mundra, Hazira, Dahej, Chhara, and Jafarabad, noting that several port operators had requested extensions to their concession agreements, including PLL (Dahej) in 2012 and 2013, APM Terminals (Pipavav) between 2011 and 2021, and APSEZ Mundra in 2015 and 2021.

With the first concession agreement with APM Terminals for Pipavav Port expiring in 2028, the government said a policy decision on extending the agreement was needed to give clarity to investors in the port sector and prevent disruption to cargo movement.

“As per GIDB (Gujarat Industrial Development Board) Act, there is no maximum permissible period of 50 years. Many other coastal states such as Odisha, Tamil Nadu, Andhra Pradesh, have port concession periods ranging from 30-99 years. The proposal of GMB was submitted to the Government after obtaining due approval of its Board,” said the government.

“In contrast to what Ramesh had claimed, the proposed policy will apply equally to all port operators instead of benefiting one port operator and all existing port operators can benefit from the policy, so no question of monopoly arises,” it said.

It added that the process of deliberating on the policy began several years ago at the request of port developers whose concession periods were set to expire within the next decade. It denied there had been any rush in the process.

Earlier, Ramesh alleged that the Gujarat government was helping Adani Ports “secure a monopoly” in the state’s port sector. The Congress general secretary in charge of communications claimed that the Gujarat government grants private ports a 30-year concession on a Build-Own-Operate-Transfer (BOOT) basis, after which ownership transfers to the government.

“This was much beyond the maximum permissible period of 50 years, but the GMB hastened to request the Gujarat Government to do so anyways. The GMB was in such a hurry that it did so without approval from its Board, resulting in the file’s return,” Ramesh alleged.

(With PTI inputs)