The President of India has granted assent to the Indian Ports Act, 2025, which replaces the previous Indian Ports Act of 1908. This new Act aims to modernize and streamline port operations in India, promote integrated port development, enhance ease of doing business, and make optimal use of India’s vast coastline.
Maritime State Development Council (MSDC)
The Act gives statutory recognition to the MSDC, established by the central government to advise on legal frameworks, port sector growth, competition, efficiency, and port connectivity.
Composition:
Chairman: Union Minister of Ports, Shipping, and Waterways (ex-officio)
Members: Ministers-in-charge of coastal states, Secretaries of the Indian Navy, Coast Guard, and Ministry of Ports, Shipping, and Waterways.
State Maritime Boards (SMB)
Recognizes State Maritime Boards (SMBs), which will now govern and administer non-major ports in their respective states.
Dispute Resolution Mechanism
Requires each state government to establish a Dispute Resolution Committee to handle disputes involving non-major ports.
Civil courts will not have jurisdiction over such disputes, and appeals can be made to the High Court within 60 days of the committee's decision.
Port Tariff and Charges
Major Ports: Tariffs will be set by the Board of Major Port Authority or its Board of Directors (if it operates as a company).
Non-major Ports: Tariffs will be set by the respective State Maritime Boards or authorized concessionaires.
Port Officer and Conservator
Port Officer: A conservator will be appointed by the state government for each port or a group of ports.
The conservator will have authority to issue directions on vessel berthing, mooring, anchoring, movement, and the removal of obstructions.
Mega Ports Classification
The Central Government, in consultation with state governments, will establish criteria to classify ports as "mega ports".
Mega Ports will retain their original status (major or non-major) but will continue to be governed by the laws applicable to that type of port.
Emergency Preparedness and Response
Ports will be required to have emergency preparedness and response plans for safety, security, disaster management, and pollution incidents.
Plans must be approved and audited by the Central Government.
Environmental and Pollution Control
Ports must comply with international environmental standards, including the MARPOL Convention (for the prevention of marine pollution from ships) and the Ballast Water Management (BWM) Convention.
India is a signatory to the MARPOL Convention but is not a party to the BWM Convention.
Penalty Provisions
Certain offences from the 1908 Act have been decriminalized and replaced with monetary penalties.
Digital Integration and Data Management
The Act introduces provisions for electronic integration of port data with port community systems or centralized systems to improve efficiency and transparency.
Prior Clearance for Ownership Changes
Ports undergoing a change in substantial ownership or effective control must obtain prior clearance from the Central Government.
Exclusions
The Act does not apply to certain ports, navigable rivers, military aircraft, non-commercial government vessels, the Indian Navy, the Coast Guard, or foreign warships.
Classification of Mega Ports: One of the concerns is the classification of mega ports, which could complicate the regulatory framework if not carefully defined.
Lack of Appeal for Penalties Levied by Conservators: Another potential issue is the absence of an appeal mechanism for penalties imposed by port conservators, which could lead to issues of accountability and fairness.
MARPOL Convention: This is the primary international treaty dealing with the prevention of pollution from ships. India is a signatory, which is essential for global environmental standards in shipping.
BWM Convention: The Ballast Water Management (BWM) Convention aims to prevent the spread of harmful aquatic organisms through ships' ballast water. Although India has not ratified it yet, it is an important treaty for global marine health
India’s port sector is integral to the country’s economic infrastructure, with its extensive coastline and strategic positioning making it a key player in global trade. With over 7,517 kilometers of coastline, India is a maritime powerhouse, handling 95% of trade by volume and 70% by value through its ports. The sector plays a crucial role in facilitating foreign trade, promoting industrial growth, and fostering regional development.
India has 12 operational major ports, with Vadhavan and Galathea proposed as the 13th and 14th. These ports are directly managed by the Ministry of Ports, Shipping, and Waterways (MoPSW) and operate under the Major Port Authorities Act, 2021.
Port Model: Major ports operate on the "Landlord Port Model", where the government owns the port infrastructure, and private players handle terminal operations.
Key Major Ports in India:
Mumbai Port: The largest natural port in India.
Kolkata Port (Shyama Prasad Mukherjee Port): The oldest major port and the only riverine port in India.
Ennore Port (Kamarajar Port): Located in Tamil Nadu, it is India's only corporatized port, registered as a company.
India has more than 200 non-major (minor) ports, which are managed by respective state governments under the Indian Ports Act, 1908. These ports are regulated by State Maritime Boards or state departments and have been largely developed through Public-Private Partnership (PPP) models.
Objective: To reduce logistics costs, enhance port-led industrialization, and improve cargo movement efficiency.
Focus Areas:
Port modernization
Connectivity enhancement
Port-led industrial clusters
Coastal community development
Over 800 projects have been identified under the programme, worth more than ₹5.5 lakh crore.
Long-term Vision: To transform India into a global maritime power by 2047.
Focus Areas:
Quadrupling port handling capacity
Promoting inland water transport and coastal shipping
Achieving green and sustainable maritime growth
A unified digital platform that connects logistics stakeholders to enhance efficiency, reduce costs, and promote transparency in port operations.
A real-time digital dashboard that provides monitoring of port performance, allowing for better decision-making and operational efficiency.
A mobile application that provides real-time updates on vessel movements, cargo status, finances, and regulatory compliance—aimed at improving the Ease of Doing Business in the maritime sector.
India ranks 22nd in the World Bank's Logistics Performance Index (2023) under the “International Shipments” category.
Average Turnaround Time (TAT) for ships in Indian ports is 0.9 days, which is better than many of its South Asian peers.
India promotes private investment in port infrastructure, particularly through PPP models in both major and non-major ports. This has led to the development of ports like Mundra, Pipavav, and Dhamra Port, which are operated by private entities such as Adani Ports.
PPP Models Used:
BOT (Build-Operate-Transfer)
BOO (Build-Own-Operate)
Under these models, assets are returned to the port authority after the concession period.
Despite the efforts, several challenges persist in India's port sector:
Capacity Constraints: Many of the older major ports are operating near full capacity.
Last-Mile Connectivity: Inadequate connections to road and rail networks often hinder the smooth movement of cargo.
High Logistics Costs: India still faces higher logistics costs compared to global benchmarks.
Regulatory Overlaps: There is a need to resolve regulatory overlaps between central and state governments to ensure smoother operations.
Need for Digitization: While India has made strides in digital port integration, there is still room for greater digitization and automation.
Green Energy Transition: The transition to green energy and more sustainable port operations needs further acceleration.
India is on track to transform itself into a global maritime hub by focusing on:
Expansion of Capacity: Through the development of new ports like Vadhavan and Galathea.
Digitization and Automation: Accelerating the implementation of digital platforms, smart port systems, and automation to improve efficiency.
Green Ports: Promoting sustainable maritime practices, including electric cargo handling, shore power, and clean energy at ports.
Integrated Transportation: Integrating inland waterways and coastal shipping under the PM GatiShakti Master Plan, which aims to enhance overall logistics infrastructure.
Port-based SEZs and Industrial Corridors: Creating special economic zones (SEZs) and industrial corridors near ports to attract investment and drive industrial growth.
India’s extensive coastline is home to numerous ports, ranging from major to minor ports, each contributing significantly to the country’s economy.
Location: Northern coast of the Gulf of Kutch, Gujarat.
Significance: Ancient port and shipbuilding centre.
Exports: Clay, bauxite, cotton, seeds, salt, oil cakes.
Location: Gulf of Kutch, Gujarat.
Significance: Largest private port in India, capable of handling over 100 million tonnes of bulk, liquid, and containerized cargo.
Special Note: Integral part of a Special Economic Zone (SEZ), with Tata Power’s UMPP under development here.
Location: Eastern corner of the Gulf of Kutch, Gujarat.
Significance: Major port, established in the 1950s after the partition, when the port of Karachi went to Pakistan.
Location: Western corner of the Kathiawar Peninsula, Gujarat.
Significance: Minor port with cement plants and an automobile assembly plant. Fishing and salt processing are major activities.
Location: Near Junagadh in the Kathiawar Peninsula, Gujarat.
Significance: Minor port with all-weather direct berthing facilities.
Location: West coast of Saurashtra, Gujarat.
Significance: All-weather port with direct berthing facilities. Known for wharfs for steamers.
Location: Southwestern coast of Saurashtra, Gujarat.
Significance: Fair weather lighterage port mainly developed for fishing.
Location: Junagadh district of Saurashtra, Gujarat.
Significance: Close to Veraval Port, mainly a fishing hub.
Location: Eastern coast of Saurashtra, Gujarat.
Significance: World’s largest shipbreaking yard. Gained attention when the French aircraft carrier Clemenceau was banned from entering in 2006.
Location: Gulf of Khambhat, Gujarat.
Significance: All-weather berthing port for small vessels. Ships must pass through a lock gate to enter.
Location: Mouth of the Narmada River, Gujarat.
Significance: Important port for petrochemical trade. Dahej Port is nearby.
Location: Near Mumbai, Maharashtra.
Significance: No major port facilities, but known for tourism.
Location: Southern coast of Maharashtra.
Significance: Handles minerals and other commodities. Also home to Bharati Shipyard Limited.
Location: Coastal city of Karnataka.
Significance: Minor port with a strategic location near the Kalindi River. Known for its protected harbor and role in sea trade, fishing, and maritime services.
Location: Coastal city of Karnataka.
Significance: Minor port, known for its Krishna Matt and high per-capita income.
Location: Northern Kerala.
Significance: Minor port, with agro-based industries. Well-connected by NH-66 and Konkan Railway.
Location: Northern Kerala.
Significance: Minor port with a focus on agri-based industries.
Location: Eastern edge of Mumbai city.
Significance: A natural deep-water harbor, historically crucial in the emergence of Mumbai as India’s commercial capital. Nhava Sheva (JNPT) was created to relieve pressure on Mumbai Port.
Location: Opposite Mumbai, across Thane Creek.
Significance: India’s largest port by container traffic, handling 65% of the country's containerized goods. Has three terminals: JNPT, NSICT, and GTI. NSICT is India’s first privately managed container terminal.
Location: Southern Canara Coast, Karnataka.
Significance: Major port for exports of tea, coffee, spices, and iron ore, and imports of petroleum, fertilizers, and edible oils. Home to a petroleum refinery.
Location: Puducherry.
Significance: Minor port with agri-based industries, fishing, and tourism.
Location: Kerala.
Significance: Known as the “City of Spices” in ancient times. Historically famous for spice trade.
Location: Cape Comorin, Tamil Nadu.
Significance: Minor port and a tourist destination. Known for its agri-based industries.
Location: Kanyakumari district, Tamil Nadu.
Significance: Proposed major port to become India’s southern trans-shipment gateway. Already a natural harbor.
Location: Gulf of Mannar, Tamil Nadu.
Significance: Handles coal, salt, food grains, edible oils, sugar, and petroleum products. Site of a new oil refinery.
Location: Near Point Calimere, Tamil Nadu.
Significance: Minor port known for salt manufacturing, fishing, and agriculture. Site of the Salt March led by Rajgopalchari in 1930.
Location: Eastern part of Pamban Island, Tamil Nadu.
Significance: Small town known for its historical significance and association with the Hindu epic Ramayana. The cyclone of 1964 destroyed the railway line connecting India with Sri Lanka.
Location: Kaveri Delta, Tamil Nadu.
Significance: Minor port known for fishing and industries like textiles, leather goods, and oil extraction.
Location: Puducherry, between Godavari and Krishna Deltas.
Significance: Agro-based industries, tourism.
Location: Andhra Pradesh.
Significance: Minor port, historically significant, with temples and agro-based industries.
Location: Tamil Nadu (Puducherry).
Significance: Cultural hub and minor trading port.
Location: Coromandel Coast, Tamil Nadu.
Significance: Minor port known for its picturesque beaches and emerging industrial growth.
Location: Krishna Delta, Andhra Pradesh.
Significance: Minor port with a long history, being developed to ease pressure on Visakhapatnam.
Location: Orissa.
Significance: Ancient commercial port, now lying in ruins. Was prominent during British rule and is often affected by tropical cyclones.
Location: East Godavari, Andhra Pradesh.
Significance: Safe port for sea trade and fishing.
Location: Nellore, Andhra Pradesh.
Significance: Privately owned deep-water port handling iron ore and granite exports. Home to Reliance Power’s 4000 MW UMPP.
Location: Andhra Pradesh.
Significance: The deepest landlocked port in India, handling iron ore, coal, oil, and fertilizers. Also houses shipbuilding and naval facilities.
Location: Mahanadi Delta, Orissa.
Significance: Deep-water port
The Indian Ports Act, 2025 is a significant reform aimed at modernizing the governance and operation of ports in India. The Act focuses on efficiency, environmental protection, and ease of doing business, all of which are essential for the country’s goal of becoming a global maritime leader by 2047.
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We provide offline, online and recorded lectures in the same amount.
Every aspirant is unique and the mentoring is customised according to the strengths and weaknesses of the aspirant.
In every Lecture. Director Sir will provide conceptual understanding with around 800 Mindmaps.
We provide you the best and Comprehensive content which comes directly or indirectly in UPSC Exam.
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