Gujarat is one of the most progressive, forward-looking and advanced States in the country when it comes to infrastructure development efforts. In particular, Gujarat's maritime sector is considered to be the most developed among the States of India in the matter of minor ports. Those in charge of policy formulation in the State felt that the time was ripe for the launch of a major effort to ensure that Gujarat emerged as the "Port State" of India. In the long run, the State could earn the status of being the main gateway on the western coast to the entire hinterland.
Over the years, the GMB has sought to ease the load on the overburdened major ports of western India, including Mumbai and Kandla, by developing new port facilities. In the process, state-of-the-art ports have become the order of the day in Gujarat.
Some of these all-weather, direct-berthing, deep-sea ports represent the country's first Greenfield ports developed in the joint sector on BOOT (Build, Own, Operate and Transfer) basis.
In this age of liberalization, it was felt that investments should come from the private sector. In 1995, Gujarat set a precedent by formulating a Port Policy, which expressed the State's intention to opt for the increasing participation of the private sector in the development of the port sector. The objective of the policy is to achieve the highest standards in port infrastructure and services and consequently attain higher traffic at the ports and enhance the process of industrialization in the State. The policy is comprehensive as it appreciates and accounts for the strategic maritime location of Gujarat and the existing entrepreneurial spirit of the State. One of the highlights of the State's Port Policy is the identification of 10 Greenfield sites with a vision to develop these ports matching global standards.
Gujarat formulated a Port Policy, which expressed the State's intention to opt for the increasing participation of the private sector in the development of the port sector
Government of Gujarat announced the Build Own Operate & Transfer (BOOT) scheme to serve as a framework for investment in the port sector
The Government of Gujarat in 1997 announced the Build Own Operate & Transfer (BOOT) scheme to serve as a framework for investment in the port sector. This lays emphasis on timeliness of infrastructure creation, efficiency of operation, operational autonomy to the private sector and synchronization with the development of the hinterland. Under this scheme, the government's role is to be maintained only in appropriate areas and its financial liabilities are to be kept to a minimum. Hence, it can be said that Gujarat is the 'Port State' of India in its truest sense.
Gujarat has been a pioneer in encouraging public private participation in the Port sector. It has reaped enormous success in its PPP model and has set up a benchmark for other states to follow. Gujarat Maritime Board has multiple port privatization models to promote private player participation in Gujarat ports and to enhance its holistic development.
The State's Port policy statement of 1995 and BOOT policy in 1997 spelled out an explicit strategy of port-led development, including the creation of new ports of international standard, in which private sector participation played a dominant role. The Gujarat Infrastructure Development Act 1999 further accelerated the process of decision making for the Port Sector and created the legal environment and framework within which private investment can flow to the State.
GMB under its Port Privatization Model has been actively promoting and developing Greenfield Ports. It has identified Greenfield sites to develop all weather direct berthing ports in participation with private port players. These port projects are being developed under BOOT policy (Build Own Operate Transfer) and will be transferred back to GMB after completion of 30 years BOOT period.
|Project Structure ||BOOT |
|Project feasibility study ||Ready |
|Project Land acquisition ||By GMB/Govt. of Gujarat |
|Tariff setting freedom ||Full |
|Operational freedom ||Full |
|Lenders protection ||Yes |
|Concession Period ||30 years + Extendable on mutual terms |
|Sub concession/contract ||Yes |
|Future development rights ||Yes |
Ports Under Development
- Chhara : Chhara Port will be developed by Shapoorji Pallonji & Co. Ltd. with 1 no. of coal berth of 8 MMTPA capacity in initial phase.
- Dahej : The port is being developed by M/s. Sterling Biotech Ltd. The total port capacity in Phase I & II will be 41 MMTPA.
- Nargol : Cargo Motors Pvt. Ltd. has been awarded Letter of Intent for development of Nargol port. The port will be developed for facilities of Container and Bulk cargo berth, with the total port capacity of around 10 MMTPA.
- VansiBorsi : It was decided to get revised pre-feasibility report (PFR) prepared due to the issue of passing of gas pipeline by ONCG. The PFR has been prepared by WAPCOS. It is proposed to initiate bidding process for the port in near future.