Sarbananda Sonowal explains Port Operations and privatization in parliament

NEW DELHI : In response to Rajya Sabha question raised on the 6th of August, 2024, regarding the operation and privatization of ports, Shri Sarbananda Sonowal, Union Minister of Ports, Shipping, and Waterways, provided the details.

India has 12 major ports under the Central Government’s jurisdiction, namely Chennai, Cochin, Deendayal (Kandla), Jawaharlal Nehru (Nhava Sheva), Kolkata, Mormugao, Mumbai, New Mangalore, Paradip, V.O. Chidambaranar (Tuticorin), Visakhapatnam, and Kamarajar Port Limited. None of these major ports have been privatized, as the ownership of the land and waterfront remains with the government. However, Public-Private Partnership (PPP) participation is allowed through a concession agreement for specific projects, berths, or terminals within these ports. This participation is secured via an open competitive bidding process, where the concessionaire pays revenue share or royalty for a fixed period. Once the concession period concludes, the port assets are returned to the port authority. Currently, 89 out of 277 berths in these major ports are operated under the PPP model.

Additionally, there are 217 non-major ports managed and controlled by respective State Maritime Boards or State Governments. These include ports in Gujarat (48), Maharashtra (48), Goa (5), Daman and Diu (2), Karnataka (13), Kerala (17), Lakshadweep Islands (10), Tamil Nadu (17), Puducherry (3), Andhra Pradesh (15), Odisha (14), West Bengal (1), and Andaman and Nicobar Islands (24).

No major ports have been privatized, the government allows private participation in specific projects through PPP models. The operation of 89 berths at major ports is currently conducted under this model, with the ownership of the land and waterfront remaining with the government. The management of non-major ports falls under the jurisdiction of State Maritime Boards and State Governments.