New Delhi, July 27 (IANS) The cabinet on Wednesday approved the policy for awarding waterfronts and associated lands to port dependent industries in all major ports of the country, said an official statement.
The policy will result in uniformity and transparency in the procedure for awarding captive facilities.
“It will enable optimal utilization of capacities in major ports and increase revenue to the Major Port Authority. The ambit of the policy includes creation of new assets as well as utilization of currently unutilised existing assets such as vacant berths. The Policy will be applicable to all the major ports,” said the statement.
According to the cabinet, under the policy, concession will be granted to port dependent industries (PDI) for setting up dedicated facilities in major ports for import and export of cargo and their storage before transportation to their destination, for a period not exceeding 30 years.
It said extension of concession period on conditions including under utilization of asset as per the concession agreement may be allowed.
“After a maximum of 30 years of operation, the waterfront and associated land in a major port will be allotted for construction of berths, offshore anchorages, transhipment jetties, single point moorings among others.The Government has also said that It will be as per the terms and conditions of the Concession Agreement (CA) to be entered into between the port authority and the PDI concerned,” said the statement.
The cabinet has also decided that under the existing guidelines for private sector participation in major ports issued by the Shipping Ministry in 1996 and 1998, provisions have been made for allotment of waterfront and land on a captive basis to Port Based Industries, including central/state Public Sector Undertakings (PSUs) which fulfil the prescribed eligibility criteria.
“Though some berths and facilities have been set up in some major ports following these Guidelines, the potential for development of such facilities is not yet fully realized,” said the statement.
The policy will help generate committed business for the major ports on a long term basis by facilitating the development and operation of dedicated port facilities by industries which are substantially dependent on a particular Major Port.