Issues in PPPs in ports in India

Abstract

PPP mode of investment in Indian ports has made a significant headway and is preferred for investments today. The 12 major ports and about 200 minor ports along the 7,500 km coastline of the country have together traded about 935 mt of cargo in 2012-13. The traffic is growing each year. The share of non major ports is rising and has reached 42% in year 2012-13. The PPP mode was more popular at non major ports controlled by the State Government, than major ports controlled by Central Government. During the XI Plan, the overall investment in the port sector was significantly lower than planned. It has had an impact on the efficacy of PPP investment in this sector. This paper analyses the issues behind this, to evolve the way forward. The issues which the port authorities or private parties have faced so far should be of interest to stakeholders wanting to leverage the PPP mode of investment. While there are arguments for and against this mode, the overall outlook for PPPs has been positive in terms of bringing about competition, fairness in operations, efficiency and quality of service.