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Indian Ports Bill, 2025: Comprehensive Overhaul of India’s Maritime Framework
The Union Minister for Ports, Shipping, and Waterways has introduced the Indian Ports Bill, 2025, in the Lok Sabha on March 28, 2025. This landmark legislation aims to revamp the century-old Indian Ports Act, 1908, fostering integrated development, enhanced regulation, and environmental sustainability within India’s vast port network.
The Bill has been a contentious issue between the Centre and coastal states, with states fearing an erosion of their control over non-major ports (which fall under the Concurrent List of the Constitution). In response to concerns over cooperative federalism, the Union government has agreed to consult states on most port-related matters, a shift from earlier versions of the bill.
The legislation proposes significant reforms while ensuring greater autonomy and structured development of both major and non-major ports.
Key features of the bill:
Criminalization of Offences: Non-criminal penalties reduced from 23 to 15, but fines have been significantly increased. Penalties range from ₹10,000 to ₹2 lakh, with possible imprisonment. Imprisonment provisions range up to six months, depending on the offence. Criminal offences expanded in response to increased port traffic and the need for stricter safety norms. Offences include non-payment of tariffs, obstruction of port operations, property damage, safety violations, unauthorized port access, and non-compliance with customs and immigration procedures.
Maritime State Development Council (MSDC): The bill seeks to formalize the MSDC as a statutory advisory body, chaired by the Union Minister for Ports, Shipping, and Waterways. It will include:
- State ministers in charge of ports
- Representatives from the Indian Navy and Coast Guard
- Secretary of the Ministry of Ports, Shipping, and Waterways
While the MSDC will retain its advisory role, its National Perspective Plan and guidelines will be binding on both the Union and state governments. This ensures predictability and stability for investors and the broader port ecosystem.
State Maritime Boards (SMBs): The bill grants statutory status to SMBs, ensuring greater control over non-major ports. SMBs will be responsible for administration, development, and dispute resolution in their respective states. A three-member Dispute Resolution Committee under the SMBs will resolve conflicts involving non-major ports, concessionaires, port users, and service providers, with appeals allowed only in the High Court.
Port Tariffs: The bill empowers State Maritime Boards (for non-major ports) and Major Port Authorities (for major ports) to determine port tariffs. MSDC will issue guidelines to ensure transparency in tariff structures.
Strengthening Environmental Protection and Safety: The bill introduces stringent measures for pollution control and waste management, including:
- Mandatory emergency response plans for ports, approved by the central government.
- Oil spill containment provisions and pollution reporting mechanisms.
- Real-time threat reporting, early warning systems, and enhanced security clearances for port activities.
Change in Ownership & Security: Any change in ownership or control of a port must receive prior clearance from the central government. The central government can declare a port non-operational if it is inactive for 10 years or due to national security concerns.
Mega Ports Classification: The central government, in consultation with states, will classify new ports. The concept of “Mega Ports” is introduced. Criteria for classification will be jointly determined by the Centre and state governments.
With 12 major ports (governed by the Major Port Authorities Act, 2021) and 217 notified non-major ports under state jurisdiction, the Indian Ports Bill, 2025, aims to create a unified, efficient, and environmentally responsible maritime framework. By ensuring structured development, promoting investment, and enhancing environmental and security norms, the Bill is a crucial step toward making India a global maritime leader.
