Centre to convert major ports into landlord ports

Government of India has set a target to mobilise Rs 6 lakh crore under the NMP initiative in consultation with all the ministries handling infrastructure projects. The Prime Minister's Gati Shakti programme also depends on the success of NMP

Visakhapatnam: Firmness expressed by the BJP-led NDA Government to implement National Monetisation Pipeline (NMP) as per the decisions taken by the NITI Aayog and implemented by the disinvestment policy will make major ports including Mumbai, Kandla (Deendayal), Chennai, Visakhapatnam and Paradip into landlord ports.

Many fear that with not much revenue to invest in Greenfield projects and thrust on improvement of techno-economic parameters to improve efficiency by the Ministry of Ports, Shipping and Waterways, all new projects are not only being awarded to private investors under PPP mode but also existing facilities have been identified for operation and maintenance by outside agencies. This will make the major ports into revenue collection entities thereby making them landlord ports.

National Monetisation Pipeline is being implemented as per the directions of NITI Aayog to unlock value in brownfield projects to private investors. The Government of India has set a target to mobilise Rs 6 lakh crore under this initiative in consultation with all the ministries handling infrastructure projects, Finance Minister Nirmala Sitharaman said in August, 2021. The Prime Minister's Gati Shakti programme also depends on the success of NMP.

According to government officials, the National Monetisation Pipeline is aimed at providing a clear framework for monetisation and giving potential investors a ready list of assets to generate investor interest. NMP envisages monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.

The government monetised assets worth Rs 97,000 crore during FY 2021-22 against a target of Rs 88,000 crore. The target for FY 2022-23 is Rs 1.52 lakh crore.

A top executive of build-operate-transfer (BOT) operator of Visakhapatnam Port Authority (VPA) told Bizz Buzz that time will soon come when all berths and services will be managed by the private agencies/investors and the management will also become a collection agent.

"As part of NMP, a convention centre has been built at the old kalyanamandapam of VPA. Now there is a talk that the Port Kalavani Stadium will be given to private parties. All this is being done as part of asset monetisation," DK Sarma, former trustee of VPA, said.

Jawaharlal Nehru Port Authority in Maharashtra is all set to become India's first major port with the decision to make it a complete landlord port with all its berths being operated on PPP mode.

"After enactment of the Major Port Authorities Act, 2021, the government wants to facilitate early implementation of NMP by drafting a model concession agreement to allow all the ports to hand over cargo handling terminals to private parties under PPP mode. Core activities like cargo handling and marine operations will be handed over to contractors as per provisions of the new enactment so as to make all the major ports 100 per cent landlord ports," Water Transport Workers' Federation of India General Secretary T Narendra Rao said.