TN cabinet approves State Ports Development Policy 2023; supports privatisation

CHENNAI: The State Highways and Minor Ports Department which had recently formulated State Ports Development Policy, 2023 after the cabinet approval has started clearing the decks under which the private players will soon start operating the port facilities and infrastructure.

A government order issued by the state highways and ports department read that the state with a coastline of 1076 kilometres will now look into to possiblities of the public private partnerships in developing port and port related activities.

The GO signed by additional chief secretary Pradeep Yadav will have the objective of meeting the development of captive ports and creating port facilities.With huge investments and the development of deep water ports with multiple berthing facilities in consideration, the state will allow private projects and give long-term leases for a duration of 30 years, informed official sources said. However, after ten years and at the operator's request, the board will examine the performance and extend the lease to 99 years.

According to the policy, the port could be given directly to companies entering into joint ventures with government agencies, including state public sector undertakings, The combined investment by government agencies in the port company's equity should be up to 11% of the equity.

The Tamil Nadu Maritime Board has identified 17 sites for direct berthing and deepwater port construction which includes Cuddalore, Nagapattinam, Rameswaram, Pamban, Kanyakumari, Colachel, Kattupalli, Ennore minor port, Panaiyur, Parangipettai and Udankudi.

According to the Tamil Nadu State Ports Growth Policy, it was picked after considering drought availability, general marine conditions, minimal impact on existing infrastructure, accessibility to hinterland freight, and promotion of regional growth.