17 locations in Tamil Nadu earmarked for private deepwater port development

The Tamil Nadu Maritime Board is working on a plan to improve its maritime infrastructure by identifying 17 sites for private port development. These locations were chosen based on factors such as natural draft availability, sea conditions, minimal changes to existing infrastructure, and connectivity to the hinterland for regional development. Under the Tamil Nadu State Ports Development Policy, private or public companies investing in coastal areas and requiring port facilities will be allocated sites for constructing ports or jetties for commercial purposes.

The state offers a long-term lease of 30 years to those making significant investments in coastal areas, with a review of performance after 10 years and the possibility of extending the rental agreement to 99 years. According to the policy, existing and future captive ports will be permitted to handle other commercial cargo with prior approval from the board. The policy also allows for the establishment of a special purpose vehicle to manage state-owned ports as part of a joint venture between a consortium of promoters and government agencies. Additionally, the government may invest up to 11% of the equity capital in the port company.

Furthermore, the policy outlines different principles for port operation depending on whether the port handles captive cargo only, multi-user specific cargo, or multi-commercial cargo. If a captive port stops handling captive cargo, it switches to the “build, own, operate, share, and transfer” principle. Land for port security areas is acquired by the port company and its designated agencies, including land transferred by the government on a lease basis.

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