Public – Private Partnership of the Port Infrastructure in India

  • Dr. Sudatta Barik
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  • Dr. Sudatta Barik

    Assistant Professor at National Law University Odisha, Cuttack, India

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Most of the international trades is seaborne. There is a need for the Indian Maritime Sector to transform into world class sector. Ports act as an economic catalyst and support small economies within the global economic system. There is a high correlation exist between the Indian economic growth and the Port sector. Ports are regarded as a critical part of infrastructure for any country. A well - developed port infrastructure allows a country to trade internationally as well as act as a transit point for international transport and trade to earn increased revenue. India has 12 major and about 200 minor and intermediate ports including 69 operational non-major ports, spread along the 7517 km coastline. India is situated in an extensive coastal region but the infrastructure facility in the coastal areas is still not developed. As a comparison between Singapore and the USA, Singapore contributes 5% of its GDP through the operation of port infrastructure while in United States of America substantial amount of revenue is generated from port sector which strengthens the economic growth of the country including job creation. This paper will highlight the Public Private Partnership model in Port Infrastructure in India. Much research has been done on privatisation of ports but still the port sector in India is not developed as compared with other countries. The paper will focus on the models adapted by the Government to develop port sector through Public Private Partnership mode, how tariff is determined in the port sector and the role of regulatory authorities in developing the port sector through privatisation with case studies. The delays in privatisation of port sectors is due to regulatory clearances and lenders inefficiency. Usually, privatisation of the port sector is done through various types of contractual arrangement. Contractual arrangements such as Built Operate and Transfer (BOT), Build own and Operate (BOO), Built Operate Own and Transfer (BOOT), Built Operate Lease and Transfer (BOLT) indicates the nature of privatisation. These agreements are certain parts of Major concession agreements in the Port Sector. As per the guidelines of the Central Government, private participation can only be allowed for development, operation and maintenance for major ports. The Indian Infrastructure Report, 1996 suggested that the failure to generate revenue from the Indian Port sector is low productivity like breakdown of equipment, handling facilities, maintenance, night navigation etc. which are to be taken into consideration. This paper will highlight those specific areas where the government should focus on developing the Indian maritime infrastructure to generate more revenue.




International Journal of Law Management and Humanities, Volume 7, Issue 1, Page 1556 - 1566


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