Govt approves policy for award of waterfront & related land

The government today approved the policy for award of waterfront and associated land to port dependent industries in major ports.
The Cabinet, chaired by Prime Minister Narendra Modi, has approved the policy for award of waterfront and associated land to port dependent industries in major ports and its operationalisation, an official statement said.
It will result in uniformity and transparency in procedure for awarding of captive facilities and will enable optimal utilisation of capacities in major ports and increase revenue to the Major Port Authority, it added.
The ambit of the policy includes creation of new assets as well as utilisation of currently unutilised existing assets such as vacant berths. The policy will also be applicable to all the major ports, it said.

Under the policy, concession will be granted to Port Dependent Industries (PDI) for setting up dedicated facilities in major ports for import and/or export of cargo and their storage before transportation to their destination, for a period not exceeding 30 years.
Extension of concession period on conditions including under utilisation of asset as per the Concession Agreement may be allowed, the statement said.

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, transhipment jetties, single point moorings etc, it added.
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.

Under the existing guidelines for private sector participation in major ports issued by the Shipping Ministry in 1996 and 1998, provisions have been made for allotment of waterfront and land on a captive basis to port-based industries.
It also includes central/state public sector undertakings (PSUs) that fulfill the prescribed eligibility criteria.
The government is focusing 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.
"The policy will help generate committed business for the major ports on a long term basis by facilitating 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," it said.