A P M Terminals Management B V-run Gateway Terminals India Pvt Ltd (GTI) and Jawaharlal Nehru Port Authority (JNPA) have signed a settlement agreement to resolve a long-standing tariff-related dispute, bringing closure to a 14-year legal battle linked to the erstwhile port tariff regulatory regime.
The agreement, approved by the JNPA board on Wednesday, was brokered by the Conciliation and Settlement Committee (CSC) headed by former Ports Secretary Gopal Krishna. The settlement was signed within the six-week deadline set by the Bombay High Court in its 10 April order.
The dispute dates back to February 2012, when the former port tariff regulator ordered a 44.28 per cent reduction in GTI’s tariffs. GTI subsequently obtained a stay from the Bombay High Court, enabling it to continue charging pre-revised rates pending final adjudication.
GTI, which began operations at JN Port in 2006 under a 30-year concession agreement, is owned 74 per cent by A P M Terminals Management B V and 26 per cent by Container Corporation of India Ltd (CONCOR). It operates one of the five container terminals at India’s largest container gateway.
A major outcome of the settlement is the creation of a dedicated Infrastructure Fund worth ₹286.55 crore, to be administered by JNPA for port infrastructure development, capacity expansion, modernisation, and efficiency enhancement. This is the first such infrastructure-focused settlement mechanism in India’s port sector.
In another first, users will receive a refund of ₹18.1 crore from the surplus calculated by the CSC as part of the dispute resolution process.
JNPA and GTI will contribute to both the Infrastructure Fund and the user refund in a 65:35 ratio, reflecting GTI’s contractual revenue share payment of 35.503 per cent to JNPA.
“The settlement marks a constructive resolution of a long-standing matter and reinforces confidence in India’s institutional mechanisms. Importantly, it also provides greater certainty for long-term investors and supports APM Terminals’ continued commitment to invest in and expand its operations in India,” said Sunay Mukerjee.
GTI said the agreement establishes a forward-looking framework for the maritime industry, highlighting India’s regulatory maturity, improving ease of doing business, and strengthening investor confidence in the country’s port sector.
