The Draft Indian Ports Bill, 2022 is a new bill under discussion that seeks to update an existing legal framework for ports in India. The bill, crafted by the government, aims to replace the Indian Ports Act of 1908, which is now over 110 years old. The shift towards a modernized law governing Indian ports mirrors the need for an updated, relevant set of regulations that keep pace with current frameworks.
A Closer Look at Proposed Changes
The Draft Indian Ports Bill, 2022 proposes several crucial revisions to the extant laws concerning ports. A key amendment is aimed at preventing and containing pollution at ports, in line with the maritime treaties and international instruments India is party to.
This bill also strives to empower and establish State Maritime Boards for effective administration, control, and management of non-major ports in India. It holds objectives of offering adjudicatory mechanisms for resolving port-related disputes and establishing a national council to foster structured development and growth of the port sector. Moreover, the proposed law emphasizes optimal use of India’s coastline as necessary and covers matters correlated or incidental thereto.
India’s Ports: An Essential Economic Driver
With its 7,500 km long coastline and 14,500 km of potentially navigable waterways, India occupies a strategic position on major international trade routes. Around 95% of the country’s trade volume and 65% of its trade value depends on maritime transport facilitated by ports.
The Current Indian Port Ecosystem
The external trade’s high growth drives India’s port sector, and the Union Government permits up to 100% Foreign Direct Investment (FDI) under the automatic route for port and harbor construction and maintenance projects.
Legal Provisions and Port Administration
The Indian Constitution’s Union list governs Major Ports under the Indian Ports Act 1908 and the Major Port Trust Act, 1963. The country has 12 major ports and 200 non-major or minor ports. Major Ports are managed by a Board of Trustees appointed by the Government of India and operate based on their policy directives and orders.
Ports in India are classified as Major and Minor Ports depending on the Central and State government’s jurisdiction as defined under the Indian Ports Act, 1908. All the 12 Major Ports function under the Major Port Trusts act, 1963 and are managed by the Central Government. In contrast, Minor Ports operate under the Indian Port Act, 1908, with ownership and management resting with State Governments.
Looking Ahead
The future of Indian ports hinges on scientific and consultative planning, including committed investments from both public and private sectors. This will necessitate a focus on safety, security, and environmental issues to ensure the continued growth and development of the port sector.
