This article will jump into details about Ports in India. India has a coastline that is more than 7,517 km long, interspersed with more than 200 ports. Most cargo ships that moves between East Asia and America, Europe and Africa pass through Indian territorial waters.
Table of Contents
Ports in India
|1||Deendayal Port Trust||Gujarat|
|2||Paradip Port Trust||Odisha|
|3||Jawaharlal Nehru Port Trust||Maharashtra|
|4||Visakhapatnam Port Trust||Andhra Pradesh|
|5||Mumbai Port Trust||Maharashtra|
|6||Syama Prasad Mookerjee Port Trust||West Bengal|
|7||Chennai Port Trust||Tamil Nadu|
|8||New Mangaluru Port Trust||Karnataka|
|9||V. O. Chidambaranar Port Trust||Tamil Nadu|
|10||Cochin Port Trust||Kerala|
|11||Kamarajar Port Limited||Tamil Nadu|
|12||Mormugao Port Trust||Goa|
Overview of Ports in India
- In November 2020 Government of India renamed the Ministry of Shipping as the Ministry of Ports, Shipping and Waterways.
- Ports in India handle and manages approximately 95% of the international trade volume of the country. The Increasing trade activities and private participation in port infrastructure are bound to further boost port infrastructure activity in India.
- India has 12 major ports as shown in the Map. Under the National Plan for Sagarmala, six new mega ports will be created in India.
- Capacity of India’s key ports stood at 1,534.91 million tonnes per annum (MTPA) in Financial Year 2020.
- In Financial Year 2020, all the key ports in India together handled 704.93 million tonnes (MT) of cargo traffic implying a growth of 2.74% in FY16-20.
- In the Union Budget 2020-21, the total allocation for the Ministry of Shipping stood at Rs. 1,702.35 crores (US$ 233.48 million).
Recent Milestones achived by Ports In India
- In August 2019, India became the first country in the whole world to issue Biometric Seafarer Identity Document (BSID), this system captures the facial biometric data of seafarers.
- November 2019 witnessed the first-ever movement of container cargo on Brahmaputra (National Waterway 2), focused on improving the connectivity to Northeast Region (NER).
- In 2019, an upgraded Port Community System was introduced for all ports.
- On July 16, 2020, the first trial container ship was flagged off from Kolkata to Agartala via the Chattogram Port of Bangladesh. It will provide an alternate and shorter route to connect the Northeast region through Bangladesh and open doors of new opportunities for both countries.
- Indian Ports handle almost 95% of trade volumes, and therefore, rising trade has contributed significantly to the cargo traffic.
- Merchandise exports reached US$ 290.63 billion in FY21.
- Increasing trade of India is translating into higher demand for containerisation due to their efficiency.
Policy ecosystem for Ports in India
- In Union Budget 2021, the Government of India announced subsidy funding of Rs. 1,624 crore (US$ 222.74 million) to Indian shipping industries to encourage the merchant ship flagging in the country.
- In February 2021, the Major Port Authorities Bill, 2020 was enacted by the Parliament of India. The Act aims to align the governance model in central ports with international best practices.
- 12 major ports were identified under the Sagarmala project for cargo handling until 2035. The objective of this project is to promote port-led development and to provide infrastructure to quickly transport goods to and from ports, with higher efficiency and at a lower cost.
- In August 2020, the GOI announced its aims to invest Rs. 10,000 crore (US$ 1.4 billion) to construct a transhipment port at the Great Nicobar Island in the Bay of Bengal to provide shippers with an alternative port in the region. The Transshipment port will facilitate big ships to anchor due to its proximity to the East-West international shipping route and it will also raise India’s share in maritime trade.
Indian ports measures
- For efficient operations, the Indian ports have implemented various measures such as an upgraded ‘Port Community System’ (PCS) for easy data flow, ‘Direct Port Delivery and ‘Direct Port Entry’.
- The GOI has permitted FDI of up to 100% under the automatic route for projects related to the construction and maintenance of ports and harbours in India.
- Indian ports received cumulative FDI inflow worth US$ 1.64 billion between April 2000 and December 2020.
- Private ports enjoy price flexibility in India as the Government of India allows non-major ports to determine their tariffs in consultation with the State Maritime Boards. At major ports, tariffs are regulated by the Tariff Authority for Major Ports (TAMP).
- Project UNNATI was started by the Government of India to identify opportunity areas to improve operations of key ports. Under the project, 116 initiatives were identified, out of which, 98 initiatives have been implemented, as of September 2020.
Major Port Authorities Act, 2020
February 2021, the Major Port Authorities Act, 2020 was enacted by the Parliament of India. Theact aims to decentralise decision-making and reinforce excellence in administration of major ports in India.
Gist of Major Port Authorities Act, 2020
- It will boost the expansion of port infrastructure in India. Major Port Authorities Act 2020 focuses on decentralizing and makig decision making process transparent and infuse more professionalism in the governance of major ports in India.
- It will reorient the governance model in central ports to landlord port model which is in line with the successful global practice. It will also help in bringing transparency in operations of Major Ports.
- It will also empower the Major Ports in India to perform at greater efficiency on account of full autonomy in decision making and also by modernising the institutional framework of Major Ports.
features of the Major Port Authorities Act 2020
|Application||It applies to the 12 major ports of India|
|Major Port Authorities Board||Under the earlier 1963 Act, all major ports were managed by the respective Board of Port Trusts that have members appointed by the central government of india. The new act enables the creation of a Board of Major Port Authority for each major port. These new Boards will replace the existing Port Trusts. |
|Composition of Board||The New Board will consist of a Chairperson and a deputy Chairperson, both will be appointed by the central government on the recommendation of a selection committee. other member One each from (i) respective state governments, (ii) Railways Ministry, (iii) Defence Ministry, (iv) Customs Department. The Board will also include2 to 4 independent members, and 2 members representing the interests of the employees of the Major Port Authority. |
|Powers of the Board||The New Act allows the Board to use its property, assets and funds as it seems fit for the development of the major port. The Board is also enabled to make rules on: (i) declaring availability of port assets for port related activities and services, (ii) developing infrastructure facilities such as setting up new ports, jetties. (iii) providing exemption or remission from payment of any charges on any goods or vessels.|
|Fixing of rates||Currently, the TAMP -Tariff Authority for Major Ports, under the 1963 Act, fixes the rates for assets and services available at ports. Under the new act, the Board will determine these rates. |
|Financial powers of the Board||Under the 1963 Act, the Board has to take prior sanction of the GOI to raise any loan. Now to meet its financial expenditure requirements, the Board may raise loans without prior permission. But, for loans above 50% of its capital reserves, prior sanction of the central government is still required. |
|Corporate Social Responsibility||The New act authorises the Board to use its funds for providing social benefits. Such as education, health, housing, and skill development.|
|Adjudicatory Board||Adjudicatory Board will be constituted by the central government. It will replace the existing TAMP constituted under the 1963 Act.|
|Penalties||Under the New Act, any person contravening any provision of the Bill or any of its rules or regulations will be punished with a fine of up to one lakh rupees.|
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