Cabinet Approves Revised Captive Port Berth Policy to Spur Investment

The Union Cabinet has approved a revised Policy for Award of Waterfront and Associated Land to Port Dependent Industries in Major Ports, introducing reforms aimed at accelerating private investment through the PPP model and strengthening infrastructure development across India’s major ports.

What does the revised Captive Policy change from the 2016 framework?

The updated policy enables existing captive users to expand capacity through new berths, jetties, terminals and single buoy moorings, while providing a structured framework for extending concession agreements, awarding waterfront to eligible government entities, and addressing changes arising from evolving business and regulatory conditions. Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the policy reflects the government’s commitment to a predictable, transparent and investor-friendly framework for port-led industrial growth.

How will concession renewals work under the new policy?

Major Port Authorities can now renew or extend concession agreements of existing Port Dependent Industries for up to 30 years without requiring a fresh tender process. Renewals will be carried out at either the prevailing market rate or the indexed revenue payable under the existing agreement, whichever is higher, protecting port revenues while giving investors long-term certainty.

How will capacity expansion be structured for existing operators?

The policy introduces competitive bidding with a Right of First Refusal for existing concessionaires, allowing them to match the highest bid for capacity expansion. 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, the concession period for any additional berth or terminal will remain co-terminus with the maximum permissible tenure of the existing facility.

What does the policy offer government entities?

For the first time, the policy allows waterfront and associated land to be awarded to eligible government organisations, including central and state government departments, statutory authorities, CPSUs, SPSUs and government-controlled joint ventures in sectors such as fertilizers, food, petroleum, coal and steel, without competitive bidding, subject to availability and safeguards. These concessions will be awarded at the notified floor price.

How does the policy address changing business conditions?

The revised framework introduces provisions for Change in Law and Unforeseen Events, allowing business plans and cargo profiles to be revised where regulatory shifts or unforeseen circumstances affect project viability. Sonowal said the maritime sector operates in a dynamic global environment, and the policy provides the flexibility needed to adapt while ensuring continuity of investment and operations.

What impact is the policy expected to have on India’s port sector?

The government expects the reforms to catalyse fresh investment in port infrastructure, strengthen supply chains, reduce logistics risks for port-dependent industries, and generate employment through expanded port-led industrial activity. The policy will apply across all Major Ports and is expected to boost cargo throughput and optimise utilisation of waterfront assets without any financial implication for the government.