India introduces SOPs for approving new ports

India is preparing strict standard operating protocols (SOPs) to approve new ports and ensure a regulated growth of the maritime sector. Full capacity utilisation at existing ports will be prioritised before approving new ones. Investments made in setting up ports should be safeguarded.

These SOPs will ensure structured growth of Indian ports. Ports, like highways and other large logistic infrastructure projects, rely on long-term market exclusivity to recoup investments made in such large projects.

A new port or terminal in the vicinity of an existing one may further delay profitability or even make an older asset unviable. India presently has 226 registered ports of which only 78 are operational. Among those functional, 40 are handling only passenger traffic and are mostly in the Andaman & Nicobar (A&N) and Lakshadweep islands.

There are over 100 ports, largely notified by states, which have not been developed for several years or are making negligible progress. These pose an unnecessary risk to investment in nearby ports. The new SOPs mandate any new ports to be part of existing master plans of Centre or state governments.