With an aim of creating a predictable, transparent and investor-friendly framework for port-led industrial growth, Union Cabinet has approved a revised policy for award of waterfront and associated land to Port Dependent Industries (PDI) in major ports. The revised policy allows existing captive users to add new berth/jetty/terminal/single buoy mooring (SBM) for Enhanced Captive Requirement up to 30 years for government entities, while addressing changes arising from evolving business and regulatory conditions. Further, the policy is expected to provide greater certainty to investors, facilitate capacity augmentation and improve ease of doing business in the port sector without any financial implication for the government.
Under the revised policy, 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.
Eligible entities include Central and State Government departments, statutory authorities, autonomous bodies, Central and State Public Sector Undertakings (CPSUs and SPSUs), and government-controlled joint ventures operating in sectors such as fertilizers, food, petroleum, oil and gas, coal, steel and other sectors notified by the Ministry of Ports, Shipping and Waterways. Considering the evolving nature of global trade, the revised policy 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.
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