Maharashtra Cabinet approves investor-friendly port policy

Aiming to make Maharashtra an import-export hub by developing water transport and shipping industry, the state Cabinet today approved a new port policy for its 720-kms long coastline.
Mumbai Maritime Board (MMB) will act as the nodal agency for development and will share equity with private players in building greenfield ports.
Chief Minister Devendra Fadnavis said the new policy is aimed at kick-starting the maritime development as well as supporting industrial activities which emphasise port-related development. The policy will make Maharashtra import-export hub by developing water transport, he said.
The policy includes development of greenfield port, jetties, coastal shipping and inland waterways. It also covers shipyards and formation of Coastal Economic Zone.

Gautam Chatterjee, Principal Secretary, Ports, said the policy covers all aspects of port and shipping, including multi-purpose jetties and captive jetties, ship building, ship repair and thing related to Ro-Ro Services.
"Maritime Board will be given absolute powers to get all permissions from various departments, including the Union Government, before allowing any investor to start building port. It will reduce hurdles and wastage of time," he said.

The state government will set up Maharashtra Port Connectivity Corporation and a Special Purpose Vehicle for water transport.
"Inter tidal land will be used to make a port by reclaiming the land and CRZ (rules) will not be applicable for use of tidal land," Chatterjee said.

In the earlier policy, private players were allowed to build a port if they initiated a proposal, but now the private entity has to go through tender process to maintain transparency in the sector.
No second port will be allowed within 50 kms radius of a port for healthy competition and financial sustainability.
"Electricity will be charged by the rate of industry unit forever, Value Added Tax (VAT) will be exempted forever and stamp duty for first installment will be exempted for shipyard," said Chatterjee.
However, for greenfield port, non-agriculture (NA) charge electricity duty will be exempted for eight years. Power tariff will be applicable according to industry charges for a period of 35 years and port tax will also be exempted for 35 years.