HomeInfrastructureGujarat Ports’ 30-Year Concessions Near Expiry

Gujarat Ports’ 30-Year Concessions Near Expiry

The concession agreements for four major ports in Gujarat—Pipavav, Mundra, Hazira, and Dahej—are approaching their expiry dates within the next decade. As the deadlines loom, three key port operators have sought extensions for their agreements, intensifying discussions on future port management and policy.

APM Terminals Pipavav, operating the Pipavav port, is seeking an extension of its 30-year concession, which is scheduled to conclude on September 29, 2028. Similarly, Adani Ports and Special Economic Zone (APSEZ) has applied for extensions for Mundra Port, where the current agreement is set to end on February 16, 2031. These requests were made in 2015 and 2021. Additionally, Petronet LNG Ltd, alongside its consortium partners Bharat Petroleum Corporation Ltd, GAIL (India) Ltd, Indian Oil Corporation Ltd, and Oil and Natural Gas Corporation, is pursuing an extension for Dahej Port. Their current concession is due to expire in December 2035.

The Gujarat Maritime Board (GMB) has acknowledged ongoing discussions concerning these extension requests, but no official decisions have been announced. Under the Build-Own-Operate-Transfer (BOOT) policy of 1997, GMB had entered into 30-year concession agreements with various ports, including Pipavav, Mundra, Hazira, Dahej, Charra, and Jafrabad. The agreements are designed to support port development during this period, with some including provisions for potential extensions. Other coastal states such as Odisha, Tamil Nadu, and Andhra Pradesh have similarly varied concession periods, extending from 30 to 99 years.

Recent controversy arose when Congress leader Jairam Ramesh alleged that the Adani Group had requested an extension of 45 years for its ports—Mundra, Hazira, and Dahej—effectively extending the total concession period to 75 years. Ramesh claimed that the proposal had received necessary clearances ahead of the 2024 Lok Sabha elections, drawing attention to the broader implications of such extensions.

The fourth port, Hazira, managed by Adani Hazira Port Ltd, a subsidiary of APSEZ, faces a concession agreement expiration in April 2035. As the expiration dates approach, the debate over concession extensions highlights the need for clarity in port management policies and their long-term impact on regional and national maritime infrastructure.

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