The Lok Sabha on Tuesday passed the Indian Ports Bill 2025, legislation aimed at overhauling the governance and development of India’s port sector through a coordinated framework between the Centre and coastal states.
The Bill replaces a patchwork of arrangements with a statutory, consultative body—the Maritime State Development Council (MSDC)—that will have representation from both the Union and state governments.
The MSDC, operational in a non-statutory form since 1997, will now be legally mandated to advise both levels of government on port-related issues and long-term strategy. Its remit includes formulating a National Perspective Plan for maritime infrastructure, ensuring that planning for all ports — whether major or non-major — is coordinated and regionally balanced. Ports will be required to share real-time operational data such as cargo volumes, vessel traffic, capacity, hinterland connectivity, and traffic patterns to inform evidence-based policymaking.
To strengthen governance at the state level, the Bill encourages coastal states to formally notify State Maritime Boards with uniform administrative powers for non-major ports. While the operational management of major ports will remain with their respective port authorities, State Maritime Boards will oversee non-major ports in their jurisdictions, potentially reducing administrative inconsistencies across the country.
The Bill also introduces State-level Dispute Resolution Committees for non-major ports, empowered to hear disputes between port authorities, concessionaires, and users. Appeals will go to the respective High Courts, creating the basis for sector-specific jurisprudence and a more predictable business environment.
International compliance is a central theme. The Bill incorporates India’s obligations under conventions such as MARPOL (International Convention for the Prevention of Pollution from Ships), the Ballast Water Management Convention, and the International Ship and Port Facility Security (ISPS) Code. Provisions require ports to develop and implement waste management plans, maintain adequate reception facilities, and adopt emergency preparedness and response plans for safety, security, and environmental incidents.
The legislation also supports India’s commitment under the International Maritime Organization’s Convention on Facilitation of International Maritime Traffic to implement a Maritime Single Window system. This will allow shipping companies and port authorities to exchange all required documentation electronically through a single entry point.
Transparency and ease of doing business are embedded in the Bill’s tariff and fee provisions, with a complete overhaul intended to bring clarity and predictability. It also redefines rule-making powers: state governments will have authority over State Maritime Boards and non-major ports, while the Centre will retain powers over major ports. On issues affecting all ports, the Centre will make rules in consultation with states.
Penalties for violations have been consolidated into schedules, updated to reflect current needs, and in some cases decriminalised. Outdated provisions from earlier laws have been deleted or replaced.
By institutionalising cooperation between the Centre and states, embedding international compliance, and making tariff and governance frameworks more transparent, the Indian Ports Bill 2025 is intended to strengthen India’s maritime sector for long-term growth and competitiveness.
