INDIA Trends and Developments Contributed by: Gautam Bhatikar, Deeksha Dev Singh and Isha Patil, Phoenix Legal
PPP Model in Ports of India The public-private partnership (PPP) model has emerged as a cornerstone of infrastructure development in India’s major ports, catalysing substantial advancements since its inception in India, with the first agreement signed in July 1997. This collaborative approach has become the preferred mode for fostering capacity aug - mentation, efficiency, productivity and increased competition within the maritime sector. PPP projects formalise complex arrangements through concession agreements, where the public sector or government grants the private sector the right to execute critical infrastructure projects. This symbiotic relationship leverages the strengths of both sectors, with the private sector bringing in expertise, innovation and capital investment, while the public sector pro - vides regulatory oversight, strategic guidance and access to essential resources. As a result, PPP initiatives have significantly contributed to the modernisation and expansion of port infra - structure, enhancing operational capabilities and global competitiveness, and thereby driving sustainable economic growth and development across India’s maritime landscape. Over the years, the PPP model in India’s ports has spurred significant development, facilitat - ing the modernisation of the port sector. This collaborative approach has seen both local and international port developers actively contribut - ing to the advancement of the Indian shipping market. The Sagarmala Programme The Sagarmala Programme, originally conceived by then-Prime Minister Shri Atal Bihari Vajpayee in 2003, and finally voted into operation in 2015, entails an investment of roughly USD140 billion. The programme is dedicated to reducing the
logistical expenses for import and export indus - tries and to enhancing domestic trade with mini - mal investment by such players in infrastructural concerns. As per the Ports, Shipping and Water - ways Ministry of India, as of 2022, 172 of the total 1,537 projects that were notified under the Sagarmala Programme have already been com - pleted. It is worth noting that the remainder are yet to become functional. A few highlights of the Programme’s efficacy are as follows. • Smart ports in the major ports have improved the ease of doing business by leveraging state-of-the-art technology such as RFID solutions, enterprise business systems, direct port entry and delivery. • Under the aegis of the Programme, ports in India have undertaken the behemoth task of converting to entirely paperless operations, with electronic delivery order systems in con - junction with the web-based port community system. • Along with the development of coastal communities, the Programme also seeks to promote tourism by setting up lighthouses on 250 floating jetties. The Ministry estimated the completion of about 200 more projects by the end of 2024. • The Programme projects the creation of roughly ten trillion jobs throughout its tenure, with an emphasis on inland connectivity via rail and road. Having secured recognition by the international community, India could get an investment bid from the Port of Rotterdam, which would give the Indian shipping industry direct access to the wealthy European market. To that effect, the Port of Rotterdam authorities have already signed two Memorandums of Understanding (MoUs) with the Kerala state government and the Maharashtra Maritime Board covering roles
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