Ministry of Ports, Shipping, and Waterways Announces Plans for Port Monetization to Drive Infrastructure Development

Private Sector participation has been allowed in the Major Ports for specific projects/berths/terminals through concession agreement for a specific period by way of open competitive bidding process on revenue share/royalty between the Major Port Authority and the Concessionaire. After expiry of the concession period, the asset is handed over to the Port Authority. Rs.10000 crore investments through award of PPP projects for FY 2024-25 at V.O. Chidambaranar Port (Rs.7055 Crore), Deendayal Port (Rs.1880 Crore), Syama Prasad Mookerjee Port (Rs.1065 Crore) is targeted for the financial year 2024-25. These projects have already been given approval by the Government. In order to provide more autonomy, flexibility and attract private investments, enactment of the Major Port Authorities Act, 2021 by replacing the Major Port Trusts Act, 1963, Revision of Model Concession Agreement (MCA), and Formulation of Guidelines for Tariff fixation for PPP Projects have been done.