India’s Ministry of Ports, Shipping and Waterways is drafting a policy designed to provide more security for private port terminal operators. The ruling sets out rules governing lease extensions that can be offered to major ports. Currently, there are no guidelines for these agreements, affecting investor confidence in the sector.Without clarity on contract renewals, further investment in capacity expansion could stall, according to port stakeholders. The government’s policy aims to help terminal operators affected by lease agreements signed in the late 1990s and early 2000s to feel more secure about keeping their assets for a longer period.
The policy applies to India’s main ports and allows them to offer lease extensions to existing terminal operators, but the government said it will address concerns to ensure any bidding process is fair. Despite the government’s promotion of a 100% landlord port model, day-to-day operations at the port are leased to private parties. Private sector actors have stressed the importance of a stable and consistent government policy to give them the confidence to invest in the country.
Tags: land leasing policy,major ports,port policy