Maritime transport (WT/TPR/S/249, p.162, para.136)
We noted that the Draft Policy (Revised) for the Maritime Sector 2005 outlining the maritime transport development plan up to 2025 has not be implemented and was reshaped into the India Maritime Agenda 2010 2020. We would like to know if there is any initiative for liberalization of the sector under the plan. Please share with us more details of such initiative, including its implementation schedule.
Reply: Government of India has released a comprehensive vision document on maritime sector for the next ten years as Maritime Agenda, 2010 2020. The liberalisation policy in the port sector was initiated in 1996. With the opening up of the Indian economy, under the liberalised policy, the Government of India has allowed private sector participation in major ports to infuse funds, induct latest technology, improved management practices and above all addition of capacity. Foreign direct investment up to 100% is permitted for construction and maintenance of ports and harbours.
As per the Maritime Agenda, 2010 2020, following policy directions have been envisaged:
The Major ports have been working towards implementing "landlord port" concept duly limiting their role to maintenance of channels and basic infrastructure leaving the development operation management of terminal and cargo handling facilities to the private sector. This approach will continue and total realisation of this concept is expected by 2020.
Public private partnerships will be the preferred mode for the development of port terminals and other commercially viable activities in the major ports. The standardization of RFQ, RFP and MCA and the formulation of guidelines for fixation of upfront tariffs have served to make the PPP process transparent and to give confidence to the investors. These documents will be reviewed periodically.
