BS Infra Summit: India sets sail on ₹60,000 cr PPP course, says Sonowal

Ports ministry bets on PPPs, green corridors, and mega harbours to redraw trade routes by 2030

The government has identified 50 public-private partnership (PPP) projects worth over ₹60,000 crore — well above the original targets of the National Monetization Pipeline — said Ports, Shipping and Waterways Minister Sarbananda Sonowal at the Business Standard Infrastructure Summit on August 21. 

Further, the government aims to raise the share of private participation in major ports to 85 per cent by 2030, he said in his keynote address. The new Indian Ports Bill, 2025, also lays out clear provisions for PPPs and foreign investment, giving ports greater autonomy to set competitive tariffs and plan long-term development. 

“These initiatives, combined with the establishment of bodies like the Maritime State Development Council and State Maritime Boards, are expected to foster cooperative federalism and create a strong ecosystem for private and foreign investment,” Sonowal said. 

He added that alternative trade corridors such as the India-Middle East-Europe Economic Corridor (IMEC) and the International North-South Transport Corridor (INSTC) are also being developed to counter geopolitical risks. 

“That is the way we are creating, considering the geopolitical situation. It is not that we are silent. We are putting efforts and finding an alternative way out so that our voice can be continued with power, energy, and vision,” the minister said. 

Vadhavan port to dwarf all others

 

The greenfield port at Vadhavan in Maharashtra, with an investment of ₹76,000 crore, will be India’s biggest port by capacity when operational, with phases due in 2029 and 2037. The port is positioned to serve as a gateway for IMEC and INSTC.

 

According to the project proposal, the government will invest about ₹38,000 crore, with a similar amount expected from private players winning bids for nine terminals.

 

“The world-class maritime terminal facilities will promote PPP and leverage efficiencies and modern technologies to create state-of-the-art terminals capable of handling mainline mega vessels plying on international shipping lines between the Far East, Europe, West Asia, Africa, and the Americas. Vadhavan Port, on completion, will be one of the top 10 ports in the world,” a Cabinet press release said.

 

Nicobar project targets transshipment hub status

 

The Nicobar port project, with an outlay of ₹48,000 crore, is expected to be completed over the next decade. It is built around three drivers that could make it a leading container transshipment port: its location just 40 nautical miles from the international trade route, natural water depth of over 20 metres, and the ability to carry transshipment cargo from nearby ports, including Indian ones.

 

Nine parties — including Adani Ports and Special Economic Zone, JSW Infrastructure, and state-owned Container Corporation of India — have shown initial interest in building the port.

 

Budget throws heft behind infrastructure

 

To accelerate economic growth, the Union Budget earlier this year allocated ₹11.21 trillion for capital expenditure — more than five times the modest ₹2 trillion in 2014.

 

“Our government under Prime Minister Narendra Modi’s dynamic leadership has embarked on this ambitious journey to revolutionise the country’s infrastructure landscape, aiming to strengthen economic growth and sustainable development, while being sensitive to the needs of the environment and ecological balance,” Sonowal said.

 

From “sea-blind” to vision: 2030 and 2047 goals

 

The minister accused the United Progressive Alliance (UPA) government of 2004–2010 of lacking foresight for the sector, while crediting Modi for reviving India’s maritime legacy.

 

“Have you thought why no reforms in the maritime sector were initiated in the years from 2004–14 during the UPA regime? For reforms to be initiated, you need a vision. They, sadly, had no vision for the maritime sector either. They were sea-blind,” he said, contrasting that with Modi’s two “grand” maritime visions — Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.

 

Over the past 11 years, India has nearly doubled its port capacity, with cargo handling at 12 major ports rising from 855 million tonnes (mt) to 1,690 mt. The country’s overall capacity now stands at 2,600 mt. The government plans to expand this to 10,000 mt by 2047.

 

Sonowal said India aims to become a global shipbuilding hub by 2030 and one of the world’s top five shipbuilding nations by 2047. The broader Amrit Kaal Vision 2047 calls for investments of ₹80 trillion to modernise port infrastructure.

 

“It focuses on expanding port capacity, operational efficiency through digitisation and automation, and promotion of green initiatives like hydrogen hubs. The vision also aims to strengthen coastal tourism, maritime skill development, and position India as a global hub for shipbuilding, recycling, and repair. Millions of jobs would be generated as a result,” Sonowal said.

 

Linking the sector’s progress to Modi’s leadership, he added: “Because of his direction, untiring effort, and good governance, we have built confidence that India can become the world’s third-largest economy by 2029 — and the No. 1 economy by 2047.”

 

He said export-import (exim) cargo is projected to double in value from $1.1 trillion today to more than $2 trillion by 2030, requiring ports to gear up for this increase.

 

Due to recent investments, average container dwell time in India has improved to three days compared to four in the United Arab Emirates and South Africa, seven in the US, and 10 in Germany, according to the World Bank Logistics Performance Index 2023.

 

Indian ports’ turnaround time of 0.9 days is also ahead of maritime leaders such as the US, Australia, Belgium, Canada, Germany, and Singapore.

 

Nine Indian ports feature in the world’s top 100 container ports, and Visakhapatnam ranks among the top 20 globally, according to the World Bank Container Port Performance Index.

 

“The crux of all our initiatives is to ensure that a large chunk of India’s cargo moves by inland and coastal waterways — a green mode of transport — as the world looks at ways to cut carbon emissions. In the past decade, cargo movement by inland waterways has grown sevenfold and by over 150 per cent in coastal shipping,” Sonowal said.

 

He stressed that ports must also connect seamlessly with rail and road. “The port must be connected with railway and roadways, so that the transporter has easy access to move goods to their targeted destination across the globe,” he said, adding that port-led industrialisation is critical.

 

Sagarmala sets new course

 

Sonowal said the ministry lacked a flagship initiative before 2015, reflecting what he called the absence of policy direction under the UPA regime.

 

Currently, about 840 projects worth ₹5.8 trillion are planned under the Sagarmala programme by 2035. Of these, 272 projects worth ₹1.41 trillion are completed, and 217 projects worth ₹1.65 trillion are under implementation.

 

Legislative overhaul anchors maritime push

 

The minister said India’s maritime development was stalled not just by outdated laws but by a lack of political will. For decades, infrastructure stagnated under archaic legislation. Between 2004 and 2014, only one maritime law was enacted, which he called “a wasted decade full of opportunities”.

 

“Only one new legislation, namely, the Indian Maritime University Act, 2008, was enacted by the UPA regime. Whereas, during the past decade of our good and reformative governance, we enacted 11 new legislations,” he further added.

 

“Forgive me if I am making it look political,” Sonowal said. “But I have to set the context for why our nation was languishing with a very slow pace of development in the decade 2004–14. Laws, in the form of updated, globally aligned, business-friendly, forward-looking legislations, are the foundation of any aspirational economy,” he said.

 

India was still saddled with 1,500 obsolete laws, many of which predated the Constitution, he said. “Who would have done business with a nation carrying such archaic laws? Some dated back to 1856. Our earlier Indian Ports Act was from 1908. Our Prime Minister has always alluded to ‘speed and scale’ as a guiding principle in our governance, development, and reform.”

 

During the monsoon session of Parliament, five new legislations were enacted — the Indian Ports Bill, 2025; the Merchant Shipping Bill, 2025; the Coastal Shipping Bill, 2025; the Carriage of Goods by Sea Bill, 2025; and the Bills of Lading Bill, 2025.

 

“With this, after extensive stakeholder consultations, discussions, and deliberation, and in the spirit of cooperative federalism, we have enacted landmark legislation which will forever alter the maritime landscape — creating a strong, business- and environment-friendly, globally aligned framework,” he said.

 

Tax reset for the maritime sector

 

Given the capital-intensive nature of shipping, the Union Budget announced several financial and tax measures this year. These include a Maritime Development Fund with a corpus of ₹25,000 crore, a new Shipbuilding Financial Assistance Policy, capacity development, extension of the Tonnage Tax Scheme to inland vessels, exemption of basic Customs duty on inputs for shipbuilding and shipbreaking, conferring infrastructure status to large ships, and support for shipbuilding clusters.

 

“These will soon get formal approval, laying out a comprehensive ecosystem for a robust and vibrant shipping sector,” Sonowal said.

 

Green shipping moves into harbour

 

Green initiatives are also a focus. The government has issued Harit Sagar: Green Port Guidelines to promote sustainable shipping. It is developing methanol and green hydrogen plants at major ports, as well as bunkering facilities for green fuels, and establishing green corridors between ports. These require large-scale private investment, Sonowal said.

 

“We are also introducing electric tugs for port operations, with at least six to seven major ports floating tenders to charter green tugs. The Hong Kong Convention on safe and sustainable ship recycling came into force on June 26 this year, and India is a party to it,” he said.