Draft Indian Ports Bill, 2022

Context

The Government of India has prepared the draft Indian Ports Bill, 2022 to consolidate and amend the laws relating to ports. 

About

• India has a 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes. 
• About 95% of India’s trade by volume and 65% by value is done through maritime transport facilitated by ports. 
• Under the aegis of the Sagarmala project of the Ministry of Ports, Shipping and Waterways, several initiatives on port-led development have been identified and launched. 
• The ongoing developments and committed investments (public and private) in ports needs to be aided by scientific and consultative planning, with a keen focus on ever increasing safety, security and environmental issues.
• The draft bill seeks to repeal and replace the existing Indian Ports Act, 1908. 
• The Ministry of Ports, Shipping and Waterways has issued Draft Indian Ports Bill, 2022 for Stakeholder Consultation.
• The proposed bill will homogenize and streamline the development of the maritime sector, along with, promoting ease of doing business by eliminating unnecessary delays, disagreements and defining responsibilities.
• It will incorporate State Maritime Boards in the national framework.

Objectives of the proposed bill

• Promote integrated planning between States inter-se and Centre-States through a purely consultative and recommendatory framework
• Ensure prevention of pollution measures for all ports in India while incorporating India’s obligations under international treaties
• Address lacunae in the dispute resolution framework required for burgeoning ports sector
• Usher-in transparency and cooperation in development and other aspects through use of data.

Major and Minor Ports in India

• Ports play a very central role in the development of a nation. 
• Cost, capacity, and ease of transportation via ports are most effective compared to other modes available. 
• India has 13 major seaports (12 Government-owned and one private) and 205 notified minor and intermediate ports that handle a huge volume of traffic. 
• Mumbai is the largest natural port in India.
• The Union Government has allowed Foreign Direct Investment (FDI) of up to 100% under the automatic route for port and harbour construction and maintenance projects.
• Government has also facilitated a 10-year tax holiday to enterprises that develop, maintain and operate ports, inland waterways and inland ports.