New land policy will allow ports to expand facilities

The land policy approved by the Cabinet on Thursday will help major ports undertake cargo-related developmental and civic works by enabling delegation of power, say port trust officials. Major ports are those that are administered by the Central Government.

On Thursday, the Cabinet approved a Shipping Ministry proposal to have a common land development policy for all major ports on a tender-cum-auction basis. Incidentally, in 2010, the Shipping Ministry had readied a land policy for major ports to streamline land utilisation, in the backdrop of port trusts moving towards a landlord port model. Major ports together have 2.65 lakh acre.

Operations hit But that policy had to be kept in abeyance after the Cabinet Secretariat stalled all land leasing-related decisions after 2011. This move had hit the operational decisions of ports and Railways. Some ports had started leasing out land on a one-month basis to be renewed every month.

The policy excludes residential land for Kandla, Mumbai and Kolkata ports, an issue which is being addressed separately.

The Ministry has already moved a Cabinet note for approving the residential land usage policy for Kandla port; another land use policy for residential land usage of Mumbai port is being reviewed by the Law Ministry; and Kolkata port will have to submit its residential land use plans.

landmark decision “This is a landmark decision that promotes delegation of power in decisions involving licensing or leasing of land. This will help us undertake many operational works, such as having a liquid cargo terminal, put in more weigh bridges on the rail track and have Railway sidings within the port.

This will also help the port set up civic facilities as it is located in a remote area,” Paradip Port Chairman, Sudhanshu Shekhar Mishra, told Business Line. Kandla Port, which has the largest land bank, echoed that the policy would help the port leverage land for cargo and revenue purpose.

“For instance, there could be coal importers seeking space to store imported coal from Indonesia or Australia, firms wanting to store cement, others looking to have warehouses for import-export cargo,” said officials from Kandla Port.

N.N. Kumar, Chairman, JN Port, said the decision enabled all major ports to take decisions for improving cargo handling and revenue, though he added that the impact on JN Port would not be significant as its land use policy had already been approved earlier.

Kolkata port sources welcomed the move but hoped for a faster decision on a policy for non-operational or residential land of ports.

> mamuni.das@thehindu.co.in