The Centre Prepares Policy, Allow Extension of Port Terminal Contracts

25 May 2023 CW Team

The Centre is in the process of formulating a policy that would enable the extension of port terminal contracts beyond their 30-year lease period, provided certain conditions are met.

A senior official from the shipping ministry informed that the policy will apply to major ports, granting them the ability to offer lease extensions to existing terminal operators, subject to specific conditions. The country's major ports fall under the governance of the Ministry of ports, shipping, and waterways.

Currently, there are no regulations in place that permit the extension of these agreements, which were originally signed in the late 1990s and early 2000s. This has become a contentious issue for port terminal operators, who seek assurance that they can retain their assets for an extended duration.

As investors in the Indian port sector, companies strongly advocate for a consistent and stable policy regime concerning port concessions, expressed representatives from a private port terminal operator whose lease is set to expire in a decade.

Port stakeholders argue that investments in capacity expansion may be hindered if there is no clarity regarding the contract extension process. "Given the substantial investment involved, the private sector desires long-term visibility to determine the feasibility of recovering the amount spent," stated officials from another private sector port player.

Existing terminal operators seek the right of first refusal, along with bid preference, stated a shipping ministry official, highlighting the need to address concerns about unscrupulous entities manipulating bids to displace reputable port operators.

The policy is nearing finalization, added the aforementioned official.

The Centre has been advocating the 100% landlord port model for major ports, aiming to encourage private sector participation. Under this model, day-to-day port operations carried out through terminals are leased to private players.

Also Read
India & Japan boost cooperation in green hydrogen and semiconductors
Centre approves Bargarh-Nuapada & Talcher-Angul railway projects

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Centre is in the process of formulating a policy that would enable the extension of port terminal contracts beyond their 30-year lease period, provided certain conditions are met. A senior official from the shipping ministry informed that the policy will apply to major ports, granting them the ability to offer lease extensions to existing terminal operators, subject to specific conditions. The country's major ports fall under the governance of the Ministry of ports, shipping, and waterways. Currently, there are no regulations in place that permit the extension of these agreements, which were originally signed in the late 1990s and early 2000s. This has become a contentious issue for port terminal operators, who seek assurance that they can retain their assets for an extended duration. As investors in the Indian port sector, companies strongly advocate for a consistent and stable policy regime concerning port concessions, expressed representatives from a private port terminal operator whose lease is set to expire in a decade. Port stakeholders argue that investments in capacity expansion may be hindered if there is no clarity regarding the contract extension process. Given the substantial investment involved, the private sector desires long-term visibility to determine the feasibility of recovering the amount spent, stated officials from another private sector port player. Existing terminal operators seek the right of first refusal, along with bid preference, stated a shipping ministry official, highlighting the need to address concerns about unscrupulous entities manipulating bids to displace reputable port operators. The policy is nearing finalization, added the aforementioned official. The Centre has been advocating the 100% landlord port model for major ports, aiming to encourage private sector participation. Under this model, day-to-day port operations carried out through terminals are leased to private players. Also Read India & Japan boost cooperation in green hydrogen and semiconductors Centre approves Bargarh-Nuapada & Talcher-Angul railway projects

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..