Cabinet Approves Revised Captive Port Policy to Boost Private Investment and Port Infrastructure
The revised policy updates the 2016 Captive Policy by allowing existing captive users to expand capacity through new berths, jetties, terminals and single buoy moorings (SBMs). It also provides a framework for extending concession agreements, allocating waterfront to eligible government entities and addressing business and regulatory changes affecting port operations.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the revised policy will create a predictable and investor-friendly environment for port-led industrial development while supporting India's emergence as a global trade and logistics hub.
A key reform allows Major Port Authorities to extend concession agreements of existing Port Dependent Industries (PDIs) for up to 30 years without fresh tendering. The extension will be granted at either the prevailing market rate or the indexed revenue payable under the existing concession agreement, whichever is higher, ensuring revenue protection while providing long-term investment certainty.
The policy also establishes a structured mechanism for capacity expansion by existing captive operators. Major Port Authorities will conduct competitive price discovery, while existing concessionaires will be given the Right of First Refusal (RoFR) to match the highest bid. Participation will be limited to eligible Port Dependent Industries handling the same cargo profile, ensuring competition while maintaining operational continuity. The concession period for newly developed facilities will remain aligned with the maximum permissible tenure of the existing concession.
For the first time, the policy permits the allocation of waterfront and associated land to eligible government organisations without competitive bidding, subject to prescribed safeguards and availability. Eligible entities include Central and State government departments, statutory authorities, autonomous bodies, Central and State public sector undertakings, and government-controlled joint ventures operating in sectors such as petroleum, fertilizers, coal, steel, food and other notified industries.
Recognising the evolving nature of global trade, the revised policy introduces provisions for changes in law and unforeseen events, allowing business plans and cargo profiles to be revised where regulatory changes or unforeseen circumstances affect project viability. It also permits changes in cargo profile after the prescribed lock-in period, or immediately where required due to changes in law.
The government expects the revised policy to catalyse fresh investment in port infrastructure, improve cargo handling capacity, optimise utilisation of waterfront assets, strengthen supply chains for port-dependent industries and generate employment, while increasing cargo throughput and port revenues without any financial implication for the Government of India.
Published on:
03 August 2026
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