Govt to grant concession to PDI for facilities at major ports
02 December, New Delhi
Ministry of Shipping Friday said under a new policy, concession will be granted to Port Dependent Industries (PDI) for setting up dedicated facilities at major ports for import and/or export of cargo and their storage before transportation to their destination, for a period not exceeding 30 years.
Under the Policy for Award of Waterfront and Associated Land to Port Dependent Industries in Major Ports, extension of concession period on conditions including under-utilisation of asset as per the concession agreement may be allowed.
After a maximum of 30 years of operation, the waterfront and associated land in a major port will be allotted for construction of berths, offshore anchorages, trans-shipment jetties and single point moorings. It will be as per the terms and conditions of the Concession Agreement (CA) to be entered into between the Port Authority and the PDI concerned.
The ambit of the Policy includes creation of new assets as well as utilization of currently unutilised existing assets such as vacant berths. The Policy will be applicable to all the Major Ports. The policy will enable optimal utilisation of capacities in Major Ports and increase revenue to the Major Port Authority.
The policy will help generate committed business for the Major Ports on a long term basis by facilitating the development and operation of dedicated port facilities by industries which are substantially dependent on a particular Major Port for import and/or export of their cargo and thus play a catalytic role in the eventual realization of the objectives of Port led development.
Allocation of waterfront and associated land to port based industries on PPP/captive basis is one of the major areas which have been identified by the Ministry of Shipping for participation/investment by the private sector in Major Ports. The Union Government has focused on Port-led development through the Sagarmala programme as a key enabler for economic growth. Optimal utilisation of land and waterfront at the disposal of the Major Ports is of critical importance in this context.