Gujarat faces Draft Ports Bill challenge

TheGujaratgovernment recently announced plans to invite global bids to develop a non-major port atNargolwith an initial of Rs 3,800 crore. Less than 50km away at Vadhavan in Maharashtra, the central government is working on a plan to develop a major port for an estimated investment of Rs 65,000 crore.

Nargol is likely to encounter tough competition from Vadhavan in drawing traffic. Moreover, the plans to develop new Ports and to boost port-led development activities could face challenges if theDraft Ports Bill2021 of the Union ministry of ports, shipping and waterways is implemented in its present form.

The draft bill aims to modify the current management model of non-major ports or ports that are run by state maritime regulators. The major ports are run by the central government.

The majority of the 27 functions defined for MSDC override the independence of state maritime boards.

Gujarat Maritime Board regulated ports handled 338 million metric tonnes (MMT) of cargo for the year 2020-21 as compared to the total national cargo of 1,247MMT. The state houses the countrys largest commercial port, the largest captive jetty, and is the only state to have three LNG terminals.