Upload
debalmitra
View
218
Download
0
Embed Size (px)
Citation preview
8/7/2019 20623404 Ports Policies Legal Framework
1/56
Presentation onPresentation on
Policies & Legal FrameworkPolicies & Legal Framework Port sectorPort sector
Presentation onPresentation on
Policies & Legal FrameworkPolicies & Legal Framework Port sectorPort sector
1
8/7/2019 20623404 Ports Policies Legal Framework
2/56
2
Indian Port Sector at a GlanceIndian Port Sector at a GlanceIndian Port Sector at a GlanceIndian Port Sector at a Glance India along its coastline of 7,517 km, has
13 major ports.
12 major ports are Port Trusts, governed
by the provisions of Major Port Trust Act
and 1 major port is a corporate port.
There are 187 minor and intermediate
ports out of which, 41 minor ports are
based in Gujarat.
Indian ports handle 95 per cent of Indias
total foreign trade in terms of volume and
70 per cent in terms of value.
Indian ports handled cargo of 720 million
tonnes in 2007-08, a 11% increase over
2006-07Source: Indian Port Association, National Maritime Development
Program
Major Ports
Kandla
Mumbai
Jawahar lal Nehru
Port
Marmagoa
New
Mangalore
Cochin
Tuticorin
Chennai
Vishakhapatnam
Paradip
Ennore
Kolkata
Haldia
Major Ports, India
8/7/2019 20623404 Ports Policies Legal Framework
3/56
8/7/2019 20623404 Ports Policies Legal Framework
4/56
What is Major and Non-Major portsWhat is Major and Non-Major ports The Indian port sector has been broadly divided into - Major ports and Non-
major ports.
The technical nomenclature Major and Non-major is based on the legal
distinctions made under the two key source laws viz. Indian Ports Act 1908 and
Major Ports Act 1963.
The distinctions between the Major and Non-major Ports is in terms of the
distribution of maritime jurisdiction between the Central and State
governments.
Major ports are listed in serial 27 of the Constitution and are administered
under Major Port Trust Act of 1963. All ports, other than major ports are listed
under the concurrent list of the Constitution and administered jointly by
Central and State governments under the Indian Port Act 1908.
4
8/7/2019 20623404 Ports Policies Legal Framework
5/56
1837 Coasting Vessels Act
1908 The Indian Ports Act 1908 - the first-ever comprehensive Indian port law to been acted for governing
the administration of all ports in India.
1917 Inland Vessels Act,
1925 Carriage of Goods By Sea Act was passed, which led adoption of uniform rules declaring minimum
rights, liabilities and immunities of a common carrier to be attached to bills of lading.
1948 Dock Workers (Regulation of Employment) Act 1948 was enacted and laid the basis for creation ofDock Labour Boards at various major ports like Mumbai, Kolkata, Chennai and Visakhapatnam.
1958 Merchant Shipping Act 1958 is passed to regulate the Indian shipping industry and define provide
measure of protection to coastal shipping
1963 Major Ports Trust Act 1963 passed by the Indian Parliament. The Major Port Trusts Act lays the basis
for an institutional framework for creation of a port trusts for each major port. Goa, liberated fromPortuguese rule becomes an integral part of India. The Mormugao (Goa) port, on the West Coast is
declared a major port
1966 Seamens Provident Fund Act,
1982 Indias first-ever State-level maritime board . Gujarat Maritime Board (GMB) is formed to undertake
comprehensive development of minor and other intermediate ports of Gujarat
1985 Inland Waterways Authority of India Act,
Legal frame workLegal frame work
5
8/7/2019 20623404 Ports Policies Legal Framework
6/56
Milestone Indian PortsMilestone Indian Ports1985 Merchant Shipping Rules
1986 Inland Waterway Authority of India (IWAI) is constituted under the IWAI Act, entrusted with the
responsibility of developing inland waterways in India
1991 Coastal Regulation Zone Act passed leading to creation of Coastal Regulatory Zone Authority
requiring compliance of all Greenfield port projects
1993 Multimodal Transportation of Goods Act is passed with a view to rationalize customs documentation
procedures as applicable to goods being moved th
rough
multiple modes of transportation, involvingroad, rail, coastal movement etc.
1996 Government announces path-breaking policy guidelines for the first time opening up port sector for
both overseas and domestic private sector investors. The Maharashtra Maritime Board (MMB) is
constituted in November 1996
1999 Gujarat Infrastructure Development Act passed by Gujarat government paving way for privatization of
port sector in the State. The first-ever BOT project involving private sector port developer P&O Ports
(Australia) Nhava Sheva International ContainerTerminal (NSICT) becomes operational
2000 The Ministry of Shipping (holding charge for ports) is formed through bifurcation erstwhile Ministry of
Surface Transport. PSA Corporation, Singapore and SICAL jointly establish India.s second private
sector ContainerTerminal at Tuticorin Port
2003 Merchant Shipping (Amendment) Bill, 2003
6
8/7/2019 20623404 Ports Policies Legal Framework
7/56
Contd.Contd. Tariffs at major ports are regulated by the Tariff Authority for Major Ports (TAMP), non-major ports
determine their own tariffs.
The MoSRTH regulates the industry through various autonomous bodies the National Shipping
Board, the Directorate General of Shipping and the Mercantile Marine Department.
Ports
In 1998, the foreign direct investment (FDI) limit in the port sector was raised to 74 per cent andsubsequently, in 1999, 100 per cent FDI in the sector.
In 1998, the shipping ministry came out with Guidelines for Private Sector Participation in Ports
through JVs and foreign collaborations.
In 2000, the Major Port Trusts Act, 1963 was re-amended to allow major ports to form JVs with non-
major foreign ports and companies.
During 2003, Rail Vikas Nigam Limited (RVNL), a Special Purpose Vehicle (SPV), was created to
undertake rail-port connectivity projects under the National Rail Vikas Yojana (NRVY) which was
initiated in 2002.
7
8/7/2019 20623404 Ports Policies Legal Framework
8/56
ContdContd
In August 2004 - Formulation of the Draft Maritime Policy. The draft maritimepolicy, which is still awaiting final cabinet approval, has been partially implemented.
In July 2004, the ISPS Code, which is a set of regulations designed for maritime
security, came into force.
Sethusamudram Ship Canal Project (SSCP) and the National Maritime Development
Programme (NMDP)- were launched in 2005, in May and December respectively.
The Rs 993.44 billion NMDP aims to increase capacity levels, enhance private
investment, improve service quality and promote competition in the maritime sector.
In January 2006 beginning of port based SEZ - approval of Vallarpadam and
Puthuvypeen within the Cochin Port Trust area
The main highlight of 2008 was the approval of the new model concession agreement
(MCA) by the union government in January.
8
8/7/2019 20623404 Ports Policies Legal Framework
9/56
ContdContdShipping
The introduction of tonnage tax in August 2004 was a major boost. The
benefits of deductions allowed under Section 33AC were withdrawn but
tonnage tax was introduced that allowed shipping companies to opt for paying
tax on profits calculated at a notional rate per tonne. This reduces tax
incidence to around less than 2 per cent of operating income although the tax
has to be paid even if there are losses.
Tonnage tax encouraged shipping companies to expand fleets. The positive
effect was visible in the first year itself, Shipping tonnage increased from 7.69
million GRT (as on December 31. 2004) to 8.29 million GRT (as on December
31, 2005). In 2005- 06, dredgers were also included under the tonnage tax
regime.
9
8/7/2019 20623404 Ports Policies Legal Framework
10/56
ContdContd Another achievement on the policy front was the Marine Hull
Policy, 2004 that covers any loss or damage to ships.
A recent policy development has been formulation of the draft Cruise
Shipping Policy on June 27, 2008. The policy envisages hassle-free
customs clearance and a dedicated cruise shipping terminal, amongother measures.
10
8/7/2019 20623404 Ports Policies Legal Framework
11/56
Draft Maritime PolicyDraft Maritime Policy
PRIVATE SECTOR PARTICIPATION
Inter-port and intra-port competition.
Generally by tender; provision for nomination for captive facilities.
Obligation to take workers in case of lease of existing facilities.
Provision tohandle operations outside strikes / breakdowns, etc.
Preference to Indian companies except in few ports.
Trade to be consulted before charges affecting them are amended.
LAND MATTER
Full powers to ports for leasing of land up to 30 years.
Ports to be allowed to renew lease in favour of sitting occupants.
Provision for subletting / partially subletting.
Port Land not to be given for religious purposes.
Change of land use as per land use. be allowed.
Annual escalation reduced from 5% to 2%.
11
8/7/2019 20623404 Ports Policies Legal Framework
12/56
Contd..Contd..
DREDGING ISSUES
Ports to invite tenders, instead of nomination to DCI
Contract for longer periods (3 years)
Right of first refusal to Indian companies, within certain band
DCI at par with other Indian dredging companies. REGULATORY FRAMEWORK
TAMP will be strengthened.
Cost plus approach will be replaced by normative approach.
Increase in efficiency by the private investor to be rewarded.
Enforce and extend ISPS code implementation and adhere to IMO Conventions
Measures for Wreck Removal, Oil Spill Management at Ports consistent with
international norms.
12
8/7/2019 20623404 Ports Policies Legal Framework
13/56
Contd..Contd..
Manpower, Training and Industrial Relations
Recruitment, Promotion, Training and Incentives to be rationalized
Productivity Linked Reward for Port workers to be Port specific
Wages to be worked out on the basis ofTime and Motion studies.
Stevedores to bring additional workers from open market.
Organizational and Institutional Issues Set up Directorate General of Ports (Like DG Shipping) Corporatisation of Ports to be pursued Maritime States to set up Maritime Boards to be eligible for Central Assistance Select Major Ports to be declared as SEZ
Additional Issues Single Point Moorings can be outside major/minor ports.
Increased coordination with other modes of transport Policy for Fisheries Harbours (Min. of Agriculture) to be integrated withMaritime
Policy
Develop Port Facilities/Terminals for promoting cruise tourism
Enhanced interaction withTrade
13
8/7/2019 20623404 Ports Policies Legal Framework
14/56
National Maritime Development Program - NMDPNational Maritime Development Program - NMDP
Introduction:
National Maritime Development Programme launched in December 2005
Programme being formulated to enhanced private investment
Utmost importance is given to development of Infrastructure
This programme would assure a good framework for facilitating Public
and Private investments and competitions and improved efficiency.
14
8/7/2019 20623404 Ports Policies Legal Framework
15/56
National Maritime Development Program - NMDPNational Maritime Development Program - NMDP
Focus Area :
Deepening port channels - higher drafts
Modernization of the system and usage of latest technology
To exploit potential of hinterland
Setting up Maritime Universities
Promote training for better manpower
Encouragement to inland water transport
Development of sea waterways and SPMs through private sector
participation
Enhancement of coastal shipping
Navigational safety
Ship building and repairing yard
Minor ports have to play important role in creation of capacity 15
8/7/2019 20623404 Ports Policies Legal Framework
16/56
Recommendation of MSDCRecommendation of MSDC
Capacity Augmentation Plans of Maritime States
Setting up of Maritime Institutes in Maritime States/Uts Synergetic policy for
Hinterland connectivity
Implementation and up-gradation of IWT
Recommendation Viability GAP funding Scheme
Concessional Tax Regime
Navigational Safety in Ports Committee (NSPC)
All Maritime States which do not have Maritime Boards to constitute
Maritime Boards by April 2008
Central Assistance For Dredging in NavigationalChannel
Coastal Shipping 16
8/7/2019 20623404 Ports Policies Legal Framework
17/56
Indian ports Areas allowed for
private sector participation
Indian ports Areas allowed for
private sector participation
(a) Leasing out existing port assets;
(b) Construction/creation of additional assets, such as:
(i) Construction and operation of container terminals;
(ii) Construction and operation of bulk, break-bulk, multi-purpose andspecialized cargo berths;
(iii) Warehousing, container freight stations, and storage facilities;
(iv) Cranage/handling equipment;
(v) Setting up of captive power plants; Dry docking and ship repair facilities.
(c) Leasing of equipment for port handling and leasing of floating crafts from the
private sector;
(d) Pilotage;
(e) Captive facilities for port-based industries. 17
8/7/2019 20623404 Ports Policies Legal Framework
18/56
11th Five Year Plan - Shipping11th Five Year Plan - Shipping
No. Scheme Financial Performance
Approved 10th Plan outlet Actual Expenditure
1 SCI 5800.00 2380.94
2 DG(S) 288.84
59.913 DG(LL) 185.00 475.87
4 Information Technology - 7.49
5 Unallocated 577.01 -
TOTAL 7753.85 2991.62
Financial Performance of Shipping Sector in 10
th
plan
The total project outlet for 11th plan outlay for DoRTH is Rs. 122557 crores, atcurrent price
18
8/7/2019 20623404 Ports Policies Legal Framework
19/56
Private Sector participation Major portsPrivate Sector participation Major ports
During 10th Five year plan, private sector schemes costing
Rs. 11257 cr. were identified
Eight schemes costing Rs. 2435 cr. Have been completed
Port Capacity addition of44.40 Million tones
Six schemes costing Rs. 3818 cr. Have already been
awarded to private operators, which will add 45.50 mil.
tonnes capacity
8/7/2019 20623404 Ports Policies Legal Framework
20/56
11th Five Year Plan Ports Outlay11th Five Year Plan Ports Outlay
11th Plan Budgetary support for central sector ports is
Rs. 3749 cr. at current price
Public investment of Rs. 3627 cr. Is expected in the
state sector
Private sector investment of Rs. 36,868 cr. During 11th
plan
20
8/7/2019 20623404 Ports Policies Legal Framework
21/56
Port wise Status Of NMDP ProjectsPort wise Status Of NMDP Projects
PHASE-I PHASE-II TOTAL
Sr.
No.
Name of the Port No. of
Projects
Estimated Cost
(Rs. In Crores)
No. of
Projects
Estimated Cost
(Rs. In Crores)
No. of
Projects
Estimated Cost
(Rs. In Cr.)
1 KOLKATA 5 447.00 20 4,855.20 25 5,302.20
2 HALDIA 11 392.25 4 800.00 15 1,192.25
3 PARADIP 11 349.53 17 2,053.30 28 2,402.83
4 VIZAG 22 1,111.00 16 1,510.00 38 2,621.00
5 ENNORE 10 4,896.00 4 1,570.00 14 6,466.00
6 CHENNAI 10 1,597.14 4 650.00 14 2,247.14
7 TUTICORIN 17 961.25 7 3,610.00 24 4,571.25
8 COCHIN 13 7,600.00 1 320.00 14 7,920.00
9 NEW MANGALORE 14 4,240.00 6 2,908.00 20 7,148.00
10 MORMUGAO 9 573.00 3 235.00 12 808.00
11 MUMBAI 9 2,228.06 5 538.00 14 2,766.06
12 JNPT 27 3,738.00 5 3,540.00 32 7,278.00
13 KANDLA 22 3,837.62 4 1,243.38 26 5,081.00
TOTAL 180 31,970.85 96 23,832.88 276 55,803.73
8/7/2019 20623404 Ports Policies Legal Framework
22/56
Issues and Strategy for11th Plan (Ports)Issues and Strategy for11th Plan (Ports) Capacity Augmentation
Dredging efficiency improvement
Development of New Deep draft ports
Improvement in labour Productivity
Reducing Dwell time
Risk Management system of customs
Private sector participation
Growth of Non-major ports
Tariff Regulation (Suitable framework)
Institutional Reforms
Corporatization
IT in Ports
Up-gradation of Hinterland Connectivity
22
8/7/2019 20623404 Ports Policies Legal Framework
23/56
NATURAL HINTERLANDOF GUJARAT PORTS
8/7/2019 20623404 Ports Policies Legal Framework
24/56
24
Background - Gujarat Port SectorBackground - Gujarat Port Sector
Strategically located with Indias longest
coastline of1600km. Nearest maritime outlet
to Middle East, Africa and Europe
State has 42 ports - includes 1 major port
and 41 non-major ports
The state
has favourable marine conditions
with medium to large tidal variation
The first state in India to invite Private
Sector Participation through competitive
bidding
The first state in India to have Chemical
Terminal, first private port of India
Pipavav, the worlds one of the largest ship
recycling yards at Alang, Indias first two
LNG Terminals in India
Main Ports of Gujarat
Mundra
NavlakhiJamnagar
SikkaOkha
Porbandar
Pipavav
Gujarat
Dahej
HaziraMagdalla
Kandla
Gujarat : Strategic Location
8/7/2019 20623404 Ports Policies Legal Framework
25/56
Natural driversNatural drivers
GujaratiGujarati acumen for Businessacumen for Business
LongestLongest coastlinecoastline--1600 km1600 km
Two NaturalTwo Natural gulfs & deep watersgulfs & deep waters
Rich maritime historyRich maritime history Strategic locationStrategic location
Vast hinterlandVast hinterland
International sea routeInternational sea route
Rich mineral resourcesRich mineral resources
Emerging oil resources at Gujarat coastlineEmerging oil resources at Gujarat coastline
8/7/2019 20623404 Ports Policies Legal Framework
26/56
Economic driversEconomic drivers
Mega Industrial development at GujaratMega Industrial development at Gujaratcoastcoast
Cargo potential and future shortage of portCargo potential and future shortage of port
capacitycapacity Requirement of specialized port facilitiesRequirement of specialized port facilities
Increase in the ship sizeIncrease in the ship size
Change in cargo composition &Change in cargo composition &containerizationcontainerization
QualityQuality Roads & Rails infrastructureRoads & Rails infrastructure
8/7/2019 20623404 Ports Policies Legal Framework
27/56
Policy driversPolicy drivers
Port PolicyPort Policy
BOOT PolicyBOOT Policy
GID ActGID Act
Project frameworkProject framework
Success stories of port developmentSuccess stories of port development
Political willPolitical will
8/7/2019 20623404 Ports Policies Legal Framework
28/56
GMB Act -1982GMB Act -1982 The Gujarat Maritime Board (GMB) was the first autonomous state board set up in
1982 after the enactment of the Gujarat Maritime Board Act, 1981. It regulates all the minor ports in the state.
ROLE:
To harness the potential of 1600 kms of coastline of Gujarat to the maximum
possible
T
o develop ports & port related infrastructure To plan for port connected infrastructure facilities like rail link, road network, etc.
To enhance Gujarat's share of international trade
To facilitate port based industries in the state
SERVICES:
Contributes to the development of vital port infrastructure
Identifies Greenfield ports for development
Specifies missing links in roads and railways and suggests upgrading existing
links to facilitate easier approach to port locations
Plans to establish a modern Maritime Institute in Gujarat
Ship building and breaking activities
8/7/2019 20623404 Ports Policies Legal Framework
29/56
Development modelsDevelopment models
PrivatePrivate
PortsPorts
PrivatePrivateJettiesJetties
CaptiveCaptive
JettiesJetties
StateState
PublicPublic
PortsPorts
JointJointSectorSector
PortsPorts
8/7/2019 20623404 Ports Policies Legal Framework
30/56
Port Policy of1995Port Policy of1995
Seeks to integrate Port development withIndustrial development.
Seeks to develop 10 greenfield projects
through PPP mode Privatization of port related services.
Private investment in existing ports
To achieve 25% of the national traffic
8/7/2019 20623404 Ports Policies Legal Framework
31/56
Build, Own, Operate & Transfer Concepts
Private developerhas to Build, Own, Operate &Manage Port facilities
Govt. will grant license/Concession
Govt. will permit assets mortgage
Assets will be transferred back to Govt. oncompletion of BOOT period
BOOT period can be extended on mutual agreedterms
Boot Policy 1997
31
8/7/2019 20623404 Ports Policies Legal Framework
32/56
GIDB Act1999GIDB Act1999
Single window framework for infrastructure project - GID
Act
Global competitive bidding
Transparent selection procedure of developer
Scope of State participation for initial stage development
or strategic partner
Bankable project document Model Concession
Agreement
Scope for sub concession for development of specialized32
8/7/2019 20623404 Ports Policies Legal Framework
33/56
Private Jetties (BOT)
Private/Jt. sector port (BOOT)
Captive Jetties (BOMT)
Rail linkages
(Pvt, Invest./SPV with RVNL)
Existing port Terminal through
Private Investment
Formation of Dredging Company
Shipbuilding/repairing Yard
(Cluster Development)
Coastal area development/Ro Ro
Private participation in supporting
services
Port Terminal through JV (Equity
share by GMB) partnership
33
8/7/2019 20623404 Ports Policies Legal Framework
34/56
The state governmenthas already played a strong
enabling role in the ports sector development
The state governmenthas already played a strong
enabling role in the ports sector development
The GMB Act 1982
Highly successful Port Policy 1995
Integrated port development visionwith private public participation
Synchronization of small and largeinvestor in port sector
Creation of market driven port sector
BOOT Policy 1997
Minimum role of State in development
Maximum operational flexibility withtariff freedom
Maximum concession
Lowest water front royalty single levy of state government
No business developmentrestriction
Adequate compensation onproject transfer
The GIDB Act 1999
Port Project framework
Single window framework for
infrastructure project - GID Act
Global competitive bidding
Transparent selection procedure of
developer
Scope of State participation for initial
stage development or strategic
partner
Bankable project document Model
Concession Agreement
Scope for sub concession fordevelopment of specialized port
facilities
Scope for development of add on
projects
The state framed one of the earliest port
policy in the country
The policy framework aims at building a
competitive and transparent industry
34
8/7/2019 20623404 Ports Policies Legal Framework
35/56
Traffic andCapacity Growth GMB portsTraffic andCapacity Growth GMB ports
82 8489
97108
132
147
135 139147
152
163
182
198
-30
20
70
120
170
220
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Traffic Capacity
8/7/2019 20623404 Ports Policies Legal Framework
36/56
Traffic growth of GMB portsTraffic growth of GMB ports
8/7/2019 20623404 Ports Policies Legal Framework
37/56
Commodity composition GMB portsCommodity composition GMB ports
8/7/2019 20623404 Ports Policies Legal Framework
38/56
GMBTraffic Comparison with National
Ports
GMBTraffic Comparison with National
Ports
1981-82 1994-95 2004-05 2005-06 2006-07 2007-08
Major Ports 87.98 195.89 383.60 423.53 463.84 519.24
GMB Ports 3.18 17.15 97.10 108.26 132.44 147.60
Other Non Major ports 3.83 5.13 30.00 37.17 52.56 53.55
TOTAL NATIONAL CARGO 94.99 218.17 510.70 568.96 648.84 720.39
Share of GMB ports in
National Traffic
3.34% 7.86% 21.11% 19.02% 20.41% 20.48%
Million Tons
8/7/2019 20623404 Ports Policies Legal Framework
39/56
Landmarks in PortDevelopmentLandmarks in PortDevelopment
19721972 Development of the private terminalDevelopment of the private terminal
(Digvijay Cement Ltd) at Sikka(Digvijay Cement Ltd) at Sikka
19911991--19981998 Captive facilities atCaptive facilities at HaziraHazira,, MuldwarkaMuldwarka, Dahej and, Dahej and KovayaKovaya
Developers were Reliance,Developers were Reliance, AmbujaAmbuja, IPCL and L & T, IPCL and L & T
19991999 Pipavav portPipavav port
20002000 MultiMulti--purpose captive jetties and SBM atpurpose captive jetties and SBM at SikkaSikka
20012001 Multi Purpose port ofMundraMulti Purpose port ofMundra
20022002 Chemical terminal at DahejChemical terminal at Dahej
20032003 Container terminal atContainer terminal at MundraMundra
Rail connectivity toRail connectivity to MundraMundra
20042004 LNG terminal at DahejLNG terminal at Dahej PetronetPetronet LNG LtdLNG Ltd
8/7/2019 20623404 Ports Policies Legal Framework
40/56
Landmarks in PortDevelopmentLandmarks in PortDevelopment
20052005 LNG terminal atLNG terminal at HaziraHazira
double stacking container train at Pipavavdouble stacking container train at PipavavTransfer of Pipavav port toTransfer of Pipavav port to MearskMearsk
20062006 MundraMundra port attaining the status of a private port from the Jointport attaining the status of a private port from the Joint
Sector statusSector status
Development of SBMDevelopment of SBM
20072007 Expansion of Captive jetty atExpansion of Captive jetty at MagdallaMagdalla andand SikkaSikka (3 new SPMs)(3 new SPMs)
Second container terminal operational atSecond container terminal operational at MundraMundra
20082008 Expansion of Dahej LNG Port and commencement of solid cargoExpansion of Dahej LNG Port and commencement of solid cargo
terminalterminal
8/7/2019 20623404 Ports Policies Legal Framework
41/56
SnapshotSnapshot -- PipavavPipavavSnapshotSnapshot -- PipavavPipavav
41
8/7/2019 20623404 Ports Policies Legal Framework
42/56
SnapshotSnapshot Dahej LNGDahej LNG teminalteminalSnapshotSnapshot Dahej LNGDahej LNG teminalteminal
42
8/7/2019 20623404 Ports Policies Legal Framework
43/56
SnapshotSnapshot HaziraHazira LNGTerminalLNGTerminalSnapshotSnapshot HaziraHazira LNGTerminalLNGTerminal
8/7/2019 20623404 Ports Policies Legal Framework
44/56
SnapshotSnapshot -- MundraMundraSnapshotSnapshot -- MundraMundra
44
8/7/2019 20623404 Ports Policies Legal Framework
45/56
SnapshotSnapshot -- MundraMundraSnapshotSnapshot -- MundraMundra
8/7/2019 20623404 Ports Policies Legal Framework
46/56
Dahej LNG terminalDahej LNG terminal
M d l C i A tM d l C i A t
8/7/2019 20623404 Ports Policies Legal Framework
47/56
ModelConcession AgreementModelConcession Agreement
Allotment of land for30 years lease for port development
To develop port as per approved DPR
To recover waterfront royalty on cargo handling at port
Transfer of port after completion of BOOT period. BOOT period can be
extended on mutual agreed terms without any compensation
Waterfront Royalty
Straight Line Option
Set off option (Now cancelled by GoG)
Lease rent
10 % of land cost and escalation @ 10 % every 3 years
Provision of Change in Law
Provision for Force Meijure
Provision for Arbitration
47
8/7/2019 20623404 Ports Policies Legal Framework
48/56
Pioneering development of Gujarats
minor ports
Pioneering development of Gujarats
minor ports
First maritime board
First maritime policy
First private port & Model Concession Agreement
First private container port
First grassroot refinery based captive jetty
Longest coastline and the first coastal development board
First LNG terminal
First Chemical port
Biggest ship breaking yard
Deepest draft port
Highest throughput amongst the minor ports
First double stack container train & the first private port rail company
8/7/2019 20623404 Ports Policies Legal Framework
49/56
Port led direct developmentPort led direct development
PowerPowerP
rojectsP
rojects
RefineriesRefineries
CementCementPlantsPlants
CoreCore
IndustriesIndustries
POLPOLChemicalChemical
ShipShipBuildingBuilding
FisheriesFisheries
CapitalCapitalGoodsGoods
8/7/2019 20623404 Ports Policies Legal Framework
50/56
Port led direct developmentPort led direct development
ProjectsProjects Major ProjectsMajor Projects
RefineriesRefineries RelianceReliance IPCLIPCL
Core IndustriesCore Industries Essar Steel, Birla CopperEssar Steel, Birla Copper
PowerPower GEB, Torrent, GIPCGEB, Torrent, GIPC
POL & ChemicalPOL & Chemical Guj Alkalies, Tata ChemicalGuj Alkalies, Tata Chemical
CementCement Guj. Ambuja, Ultratech, Sanghi, SiddhiGuj. Ambuja, Ultratech, Sanghi, Siddhi
Capital GoodsCapital Goods L&T, WelspunL&T, Welspun
Ship BuildingShip Building Dahej, Mundra, PipavavDahej, Mundra, Pipavav
FisheriesFisheries Jakhau, DholaiJakhau, Dholai
8/7/2019 20623404 Ports Policies Legal Framework
51/56
Port led indirect developmentPort led indirect development
RoadsRoads&&
RailsRails
DMICDMIC
PCPIRPCPIR
SEZsSEZs
RefineriesRefineries
SIRSIR
LogisticLogisticParksParks
VTMSVTMS
8/7/2019 20623404 Ports Policies Legal Framework
52/56
Port led indirect developmentPort led indirect development
ProjectsProjects Major ProjectsMajor Projects
RoadsRoadsLinkages with State and National HighwaysLinkages with State and National Highways
mainly Mundra, Pipavav, Dahej, Bedimainly Mundra, Pipavav, Dahej, Bedi
RailsRails
New Port Linkages orModernizationNew Port Linkages orModernization
Mundra, Pipavav, Veraval, PorbandarMundra, Pipavav, Veraval, Porbandar
Pipeline NetworkPipeline Network Gas Pipeline Network of GSPCGas Pipeline Network of GSPC
SEZsSEZs MundraMundra, Jamnagar, Dahej,, Jamnagar, Dahej, HaziraHazira
SIRSIR Proposed atProposed at DholeraDholera
CFSCFS MundraMundra, Pipavav, Pipavav
PCPIRPCPIR DahejDahej
Logistic parksLogistic parks Proposed port based logistic parkProposed port based logistic park
DMICDMIC DelhiDelhi--Mumbai Industrial CorridorMumbai Industrial Corridor
8/7/2019 20623404 Ports Policies Legal Framework
53/56
Port led other developmentPort led other development
WarehousesWarehousesAreaArea
DevelopmentDevelopment
TourismTourism
AncillaryAncillaryIndustriesIndustries
RevenueRevenueGenerationGeneration
EmploymentEmployment
GreenGreenDevelopmentDevelopment
ColdColdChainChain
8/7/2019 20623404 Ports Policies Legal Framework
54/56
Port led other developmentPort led other development
Regional Social and Economic DevelopmentRegional Social and Economic Development Mundra, Pipavav, Dahej, HaziraMundra, Pipavav, Dahej, Hazira
Highest employment generationHighest employment generation
Efficient and maximum utilization state resourcesEfficient and maximum utilization state resources
through private sector participationthrough private sector participation New revenue resources for stateNew revenue resources for state
Development of ancillary industries and secondaryDevelopment of ancillary industries and secondaryservice providersservice providers
Highest revenue from Gujarat Ports to CentralHighest revenue from Gujarat Ports to CentralGovernmentGovernment Custom, Excise and Service TaxCustom, Excise and Service Tax
8/7/2019 20623404 Ports Policies Legal Framework
55/56
IssuesIssues
Way behind international developments.
Not a single port in top ten
Severe connectivity issues
No major shipping line in the country
Poor levels of containerization
Lack of seamless customs procedures
Crippling man-power constraints
Economy not export driven
Hiatus between centre and State
8/7/2019 20623404 Ports Policies Legal Framework
56/56
56