Cabinet approves revised port waterfront policy to accelerate private investment

New Delhi: The Union Cabinet on Friday approved a revision to the shipping ministry's captive waterfront policy, a move aimed at accelerating private investment in the port sector by offering greater operational certainty and allowing government entities to obtain waterfronts without competitive bidding.

The revised Policy for Award of Waterfront and Associated Land to Port-Dependent Industries (Captive Policy) introduces several reforms intended to enhance operational flexibility and strengthen infrastructure development at major ports. The shipping ministry stated that the new policy will benefit existing captive users by permitting them to develop additional berths, jetties, terminals and Single Buoy Moorings (SBMs) to meet increased requirements.

Under the revised framework, the concession period for government entities has been extended up to 30 years. The policy also addresses changes arising from evolving business needs and regulatory conditions, providing investors with greater long-term certainty. According to officials, there were around 24 captive waterfront facilities in operation as of last year.

The ministry said the policy is expected to provide greater certainty to investors, facilitate capacity augmentation, and improve the ease of doing business in the port sector without any financial implication for the government.

One of the key changes is the provision for allotting waterfronts and associated land to eligible government organisations on a nomination basis, bypassing the need for competitive bidding. This will apply subject to availability and prescribed safeguards. Eligible entities include Central and state government departments, statutory authorities, autonomous bodies, public sector undertakings (PSUs), and government-controlled joint ventures operating in sectors such as fertilisers, food, petroleum, oil and gas, coal, and steel, as notified by the shipping ministry.

Under the revised policy, concessions will be awarded at the notified floor price, ensuring transparency and uniformity. The changes are expected to streamline the process for industries that depend on port access for their operations, ultimately supporting broader economic growth.

The Cabinet's decision is part of the government's ongoing efforts to modernise port infrastructure and attract private capital in line with the National Infrastructure Pipeline and the Maritime India Vision. By clarifying the rules for captive waterfronts, the policy aims to reduce delays and uncertainties that have previously deterred investment.

Analysts view the move as a positive step for the shipping and logistics sector, as it could encourage more industries to set up captive facilities, decongesting public berths and improving overall port efficiency. However, some experts have called for careful monitoring of the nomination-based allotment to ensure that it does not lead to unfair advantages or underutilisation of public assets.

The revised policy comes at a time when global supply chains are under pressure, and efficient port operations are critical for trade competitiveness. With the extension of concession periods and added flexibility, the government hopes to create a more investment-friendly environment while maintaining safeguards for public interest.