OWNERSHIP OF PORTS IN THE COUNTRY

Key Highlights:

• India has twelve Major Ports which are under the Government of India, with no privatization of their ownership.
• Eleven of these ports are governed by the Major Port Authorities Act, 2021, while Kamarajar Port is a wholly-owned subsidiary of Chennai Port Authority under the Companies Act.
• Ownership of land and core port assets remains with the respective Major Port Authority or the Government of India.
• Several berths and terminals have been developed under the Public-Private Partnership (PPP) mode over the last ten years.
• The total revenue of Major Ports increased from ₹17,671.49 crore in FY 2021-22 to a projected ₹26,582.77 crore in FY 2025-26.

Detailed Insights:

• Major Ports provide common infrastructure and regulatory oversight, with specific berths and terminals developed by the Port Authority or through private participation.
• The government promotes the landlord port model to enhance operational efficiency, augment capacity, and attract private investment.
• All PPP projects are awarded through transparent and competitive bidding, utilizing a standardized Model Concession Agreement (MCA).
• This approach ensures improved service delivery while maintaining government ownership and overall administration of the Major Ports.
• The Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, provided this information in the Rajya Sabha.

Key Concepts Involved:

• Major Port Authorities Act, 2021: Legislation governing the administration, control, and management of most Major Ports in India.
• Public-Private Partnership (PPP): A funding and operational model where a government service or private business venture is funded and operated through a partnership of government and one or more private sector companies.
• Landlord Port Model: A port governance model where the port authority acts as a regulatory body and landlord, leasing out port infrastructure to private operators for cargo handling and other services.
• Model Concession Agreement (MCA): A standardized legal framework used by the government for awarding infrastructure projects, particularly in the PPP mode, to ensure transparency and protect public interest.