Cabinet approves port policy

The Maharashtra Cabinet on Monday approved its port policy, aimed at making the state an import-export hub by developing its water transport and shipping industry.

The policy will create better facilities around 720km of coastal region of the state. The Mumbai Maritime Board (MMB) will act as nodal agency and will also share its equity with private partners in building a green field port, which, according to the government, will attract entrepreneurs in this sector. The happiest man is principal secretary of the port department, Gautam Chatterjee, as the policy is his brainchild and has been approved by the state Cabinet just before his retirement on January 31.

“The Maritime Board will be given absolute powers to get all permissions from various departments including the Union government before allowing any investor to start building of port. It will reduce hurdles and wastage of time. The move will be welcomed by investors in the port sector,” said Mr Chatterjee. “Inter tidal land will be used to build ports by reclaiming land and CRZ will not be applicable for use of tidal land,” he added.

According to the policy, even if a company approaches MMB, it will have to go through a tender process to maintain transparency. No second port will be allowed within 50km radius for healthy competition and financially sustainable business. “Electricity will be charged by the rate of industry unit forever. Value Added Tax (VAT) will be exempt forever and stamp duty for the first installment will be exempt for shipyard,” informed Mr Chatterjee. However, for green field port, Non-agriculture (NA) charges electricity duty will be exempt for 8 years. Power tariff will be applicable according to industry charges for a period of 35 years and port tax will also be exempt for 35 years.

CM Devendra Fadnavis said that the policy will make Maharashtra an import-export hub by developing water transport. The policy includes green field port, jetty, coastal shipping, inland waterways, shipyard, formation of coastal economic zone and facilitation of maritime projects.