The Union Cabinet has approved a revised policy governing the allocation of waterfront and associated land to Port Dependent Industries (PDIs) at India’s major ports, paving the way for greater investment, capacity expansion and improved utilisation of port infrastructure.
The revised Captive Policy, approved on Friday, updates the original 2016 framework to reflect evolving business requirements and regulatory changes while providing a transparent and investor-friendly mechanism for the development of captive port facilities.
Under the new policy, existing captive users will be allowed to develop additional berths, jetties, terminals or Single Buoy Moorings (SBMs) to meet enhanced captive requirements. Eligible government entities can now secure concession periods of up to 30 years, providing long-term certainty for future investments.
Captive users, or Port Dependent Industries, are industrial units that operate dedicated port facilities exclusively for handling raw materials or finished products required for their manufacturing and production activities.
Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, said the revised policy reflects the government’s commitment to creating a predictable, transparent and investor-friendly framework for port-led industrial development.
“The revised Captive Policy is a major reform that balances investor confidence with public interest,” Sonowal said. He added that long-term certainty for existing operators, easier capacity expansion and a transparent investment framework would significantly strengthen India’s port infrastructure.
The policy also introduces a structured mechanism for capacity expansion by existing captive operators. Major Port Authorities will undertake price discovery through competitive bidding among eligible PDIs handling similar cargo, while granting the existing concessionaire the Right of First Refusal (RoFR) to match the highest bid.
To prevent misuse of the expansion route for extending concession periods, any additional berth or terminal developed under the expansion proposal will have a concession tenure that remains co-terminus with the maximum permissible concession period of the existing facility.
In a significant relaxation, the revised policy removes the requirement for competitive bidding for eligible government organisations, subject to prescribed safeguards and availability of waterfront land. Eligible entities include Central and State Government departments, statutory authorities, autonomous bodies, Central and State Public Sector Undertakings (CPSUs and SPSUs), and government-controlled joint ventures operating in sectors such as fertilisers, food, petroleum, oil and gas, coal, steel and other sectors notified by the Ministry of Ports, Shipping and Waterways. Concessions for these entities will be awarded at the notified floor price.
The revised Captive Policy will be implemented across all major ports and is expected to enhance cargo throughput, optimise the utilisation of waterfront assets and generate sustained revenue for port authorities, while involving no additional financial implication for the Government of India.
