BOT operators of ports ask govt to resolve issues in port policies

27 Aug 2021 CW Team

BOT operators at major ports handling a single commodity have urged the Ministry of Ports, Shipping and Waterways to address issues with port policies that are affecting their operations.

Since Prime Minister Narendra Modi announced the Atmanirbhar Bharat Abhiyan to make India self-sufficient, the government has implemented reforms and policy changes to reduce India's reliance on coal imports from other countries, with an emphasis on increasing domestic coal production and replacing at least 100 million metric tonnes (mmt) of coal imports in FY22.

As a result of the situation, operations for a single commodity handling port are no longer feasible, resulting in significant underutilisation of port infrastructure.

These reforms have had an impact on BOT operators' financial viability, as the volume of imports has decreased, and operators who are currently limited to handling only coal are going out of business. Instead, by allowing BOT operators to handle multiple commodities through necessary policy changes, they can significantly contribute to Atmanirbhar Bharat's vision, as the terminals can be used to export a variety of commodities. It will significantly improve the livelihoods of those directly employed in the sector and has the potential to generate significant revenue for the country.

Policy changes and reforms have had serious cascading effects on the coal importing terminals operated by the BOT operators under the PPP model.

Due to the under-utilisation of installed capacities, BOT operators are currently only handling coal, which is classified as Stressed Assets.

Minister Sarbananda Sonowal has been asked by the Association of BOT Operators to consider making a minor change to the PPP model for single commodity private port terminals to allow for multi-commodity handling, as this will help struggling private port operators.

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