Stage set for ports to monetise land

Rates for 265,000 acres owned by 12 ports will be revised in line with market rates

The government on Thursday approved policy guidelines for 265,000 acres of land belonging to the 12 major ports, paving the way for monetising the plots.

The licensing and leasing of these lands would be based on the new guidelines. The tariff authority of major ports would do the valuation of the land after consulting the stakeholders. The rates would be revised in line with market rates.

“The ports can now get bigger investment from the private sector,” said P D Vaghela, former chairman, Kandla Port Trust. “They can give land in Custom-bound areas for the processing of cargo — activities such as bagging, etc.”

Port trusts expect the policy to make way for improving storage facilities for dry cargo and liquid cargo. Also, such activities can now be taken up by stevedores and users. In the absence of such guidelines, port trusts were not able to lease land to private players for any such purpose.

Agencies essential for functioning of the port — Customs, health, electricity and government schools and colleges — would get a discount of up to 75 per cent on lease rentals from major port trusts. Major ports would also be required to make proactive disclosures to ensure transparency in land management.

“For the last six-seven years, ports were not able to leverage their land. The policy is a welcome step in enabling that,” said N N Kumar, deputy chairman, Jawaharlal Nehru Port Trust. Port trusts would also try to use land to attract export-import cargo, as industries can now be given land for captive usage in areas adjacent to port facilities.

Port trusts were expecting the new guidelines would help augment revenue by using the land resources optimally and boost cargo throughput.

Mumbai Port Trust, one of the oldest ports in the country, has been dealing with around 300 lease renewal issues in its area, both commercial and residential. The new policy was likely to sort out these issues for all ports.

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