Major Port Authorities Act, 2021, enhanced efficiency and governance of Major Ports: Economic Survey 2023-24

The Economic Survey 2023-24 highlights that the Major Port Authorities Act, 2021 with a focus on decentralised decision-making, professionalism, and PPP models has enhanced efficiency and improved governance of major ports. Indian ports are rapidly expanding capacity to meet growing trade.

The Major Port Authorities Act, 2021 provide for regulation, operation and planning of Major Ports in India and vests the administration, control and management of such ports upon the Boards of Major Port Authorities.

The legislation empowers these ports to perform with greater efficiency on account of increased autonomy in decision making and by modernising their institutional framework. 

Capacity at Major Ports that are governed by the Central Government has nearly doubled since 2014. Improved connectivity through coordinated planning under the PM Gati-Shakti National Master Plan and a focus on public-private partnerships have enhanced India’s maritime competitiveness globally.

India’s rank in the International Shipments category in the World Bank Logistics Performance Index has improved to 22nd in 2023 from 44th in 2014.

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Further, policy reforms and the induction of new technology have enhanced port efficiency and productivity. The container turnaround time has dropped by 50 per cent between 2014 and 2023-24. The union capital expenditure towards ports, shipping and waterways sector has grown by 27 per cent between FY23 and FY24.

Under the Sagarmala national programme launched in 2015, a total of 839 projects worth ₹5.8 lakh crore have been undertaken across five key areas of Port modernisation & fresh development, connectivity enhancement, port-led industrialisation, coastal community development and coastal shipping and inland water transport.

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Under this programme, 262 projects worth ₹1.4 lakh crore are completed, while 217 projects worth ₹1.65 lakh crore are under implementation and 360 projects worth ₹2.7 lakh crore are under development.

India’s Maritime Vision 2030 outlines over 150 initiatives to improve ports, shipping, and inland waterways and envisions investments of ₹3-3.5 lakh crore. The Maritime Amrit Kaal Vision 2047 outlines over 300 initiatives across 11 key areas to drive growth and development in India’s coastal regions.

Its vision aims to reduce the average vessel turnaround time (containers) from 25 hours in 2020 to less than 20 hours in 2030. Likewise, it also aims to increase the average ship daily output (gross tonnage) from 16,000 in 2020 to more than 30,000 in 2030.

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Coastal Shipping and Inland Water Transport

With the focus of the Government to foster coastal shipping, the gross tonnage through this mode has increased from 1.19 million GT as on 1, April 2014 consisting of 846 vessels to 1.72 million GT with 1039 vessels as on 1, April 2024.

India has a large endowment of rivers, canals, and other waterways, with a total navigable length of around 14,500 km11. The notification of the Inland Vessels Act 2021, was aimed at replacing the over 100 years old Inland Vessels Act of 1917, making the legislative framework user-friendly.

Capital expenditure by the Inland Waterways Authority of India (IWAI) for FY24 was ₹1010.5 crore. Based on feasibility and detailed project reports prepared for 106 new National Waterways (NWs), technical interventions have been planned for safe navigation and shipping on technically viable waterways.

Over 63 per cent of the Jal Marg Vikas Project on NW-1 has been completed as of March 2024. Phase-I development of NW-3, NW-4, NW-5 & 13 new NWs was approved at a cost of ₹267 crore for 2025-2026.

The Indo Bangladesh Protocol (IBP) route, developed jointly by India and Bangladesh at an estimated cost of ₹305.84 Crore, provides an alternate connectivity for all North-eastern states from Guwahati and Jogighopa to Kolkata and Haldia ports. With the initiatives taken in last 9 years, the cargo handled via IBP route has increased significantly.

The report says that ‘Harit Sagar’- Green Port guidelines were launched in May 2023 - under which four major ports are already generating more renewable energy than their demand.

Development of an all-weather greenfield deep draft major port at Vadhavan in Maharashtra has been approved by the Cabinet. The total project cost, including land acquisition component, is ₹76,220 Crore.

The project will be constructed by Vadhavan Port Project Limited, an SPV formed by Jawaharlal Nehru Port Authority and Maharashtra Maritime Board. This will include core infrastructure, terminals and other commercial infrastructure in PPP mode.

The project will create a cumulative capacity of 298 million metric tonnes per annum.

Find the Economic Survey for 2023-24 here.

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