India likely to extend DP World’s Nhava Sheva terminal concession

India is moving towards extending the operating concession of DP World’s container terminal at Nhava Sheva, a step aimed at ensuring operational continuity and supporting trade growth at the nation’s busiest container gateway.

The extension is expected to cover Nhava Sheva International Container Terminal (NSICT), among the first private terminals at Jawaharlal Nehru Port (JNPA). DP World’s current concession, signed in the late 1990s, runs until 2028. However, industry sources indicate that authorities are weighing an early renewal to safeguard investment and maintain cargo-handling efficiency.

The move follows the landmark April 2025 settlement that ended a two-decade tariff dispute between JNPA and DP World. Under the pact, a ₹705 crore settlement is being offset through volume-linked royalty rebates until 2028 or until fully adjusted—clearing the way for improved collaboration and paving the path for a concession extension.

Analysts believe a longer tenure for DP World will help sustain stability at Nhava Sheva, particularly as competition rises from new private ports and terminals. With India’s container volumes projected to grow steadily, policymakers are keen to ensure capacity readiness and avoid operational disruptions.

At the same time, the prospect of an early extension could draw scrutiny from rival global operators, many of whom are actively seeking a stronger foothold in India’s fast-expanding ports sector. A formal announcement from JNPA or the Ministry of Ports, Shipping & Waterways is expected in the coming months.