India considers early concession extension for DP World at Nhava Sheva

MUMBAI : India is moving towards extending the operating concession of DP World’s Nhava Sheva International Container Terminal (NSICT), a step aimed at safeguarding investments and supporting trade growth at Jawaharlal Nehru Port (JNPA), the country’s busiest container hub.

DP World’s current agreement, signed in the late 1990s, is set to expire in 2028. However, people aware of the matter said authorities are weighing an early renewal to maintain cargo-handling efficiency and ensure operational stability as competition intensifies from private ports and new terminals.

The discussions come after the landmark April 2025 settlement that resolved a two-decade tariff dispute between JNPA and DP World. As part of the pact, a Rs 705 crore settlement is being offset through volume-linked royalty rebates until 2028, or until fully adjusted. The resolution has cleared the ground for improved collaboration between the port authority and the global operator, industry executives said.

Analysts point out that a longer tenure for DP World at Nhava Sheva could provide much-needed continuity, especially as India’s container volumes are projected to grow steadily in the coming years. Policymakers are keen to avoid operational disruptions while preparing for capacity expansion.

At the same time, the prospect of an early extension may attract scrutiny from rival international operators, many of whom are looking to expand their presence in India’s fast-growing ports sector. A formal announcement from JNPA or the Ministry of Ports, Shipping & Waterways is expected in the coming months.