Cabinet on Wednesday approved the policy for award of waterfront and associated land to port dependent industries in major ports and its operationalisation
Cabinet on Wednesday approved the policy for award of waterfront and associated land to port dependent industries in major ports and its operationalisation. According to the government release, the policy will result in uniformity and transparency in the procedure for awarding captive facilities. It will enable optimal utilization of capacities in major ports and increase revenue to the Major Port Authority. Saying that the policy will be applicable to all the major Ports, the ambit of the policy includes creation of new assets as well as utilization of currently unutilised existing assets such as vacant berths.
Concession will also be granted to Port Dependent Industries (PDI) for setting up dedicated facilities in Major Ports for import and/or export of cargo and their storage before transportation to their destination, for a period not exceeding 30 years, said the release. After a maximum of 30 years of operation, the waterfront and associated land in a major port will be allotted for construction of berths, offshore anchorages, transhipment jetties, single point moorings etc. It will be as per the terms and conditions of the Concession Agreement (CA) to be entered into between the Port Authority and the PDI concerned.
Under the existing guidelines for private sector participation in Major Ports issued by the Ministry of Shipping (MoS) in 1996 and 1998, provisions have been made for allotment of waterfront and land on a captive basis to Port Based Industries including Central/State Public Sector Undertakings (PSUs) which fulfil the prescribed eligibility criteria. Though, some berths and facilities have been set up in some Major Ports following these Guidelines, the potential for development of such facilities is not yet fully realized. Government of India has focused on Port led development through the Sagarmala program as a key enabler for economic growth. The objective of this policy is to ensure uniformity and transparency in the procedure for awarding captive facilities.