Parliament clears Indian Ports Bill, 2025

Parliament passed five key maritime legislations in August 2025, including the Indian Ports Bill, 2025, replacing the outdated 1908 Act to modernise port governance, enhance transparency, and align with global standards. The Bill establishes State Maritime Boards, the Maritime State Development Council, and mandates electronic tariff publication, structured dispute resolution, and adherence to global environmental conventions. It aligns India with global practices such as EU environmental standards and MARPOL conventions. The bill also revises penalties and fines, decriminalising minor infractions. 

Concurrently, FY 2024-25 emerged as a landmark year as cargo volumes touched 855 MT, container traffic surged 70% over a decade, PPP investments tripled, industrialisation expanded, and operational efficiency improved significantly across major ports.

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The Parliament on Monday, 18 Aug, passed the Indian Ports Bill, 2025, a landmark legislation aimed at modernising the country’s port governance and aligning operations with global standards. During the Session that commenced on Monday, July 21, 2025, and was adjourned sine die on Thursday, August 21, 2025, both Houses of Parliament approved five Bills of the Ministry of Ports, Shipping & Waterways. Those five bills are:

  1. The Bills of Lading Bill, 2025, 
  2. The Carriage of Goods by Sea Bill, 2025, 
  3. The Coastal Shipping Bill, 2025, 
  4. The Merchant Shipping Bill, 2025 and 
  5. The Indian Ports Bill, 2025.

Introducing the bill, Union Ports, Shipping, and Waterways Minister Sarbananda Sonowal highlighted that the new framework would make port operations more disciplined, transparent, and internationally competitive.

Mr Sonowal noted that under the leadership of Prime Minister Narendra Modi, India has greatly expanded its port capacity and cargo handling, while cutting ship turnaround times by nearly 49% through mechanisation and digitalisation. However, he pointed out that these achievements are still constrained by the outdated Indian Ports Act of 1908, a colonial-era legacy. 

According to the minister, the old statute does not address long-term planning, contemporary environmental safeguards, or effective mechanisms for dispute resolution. He stressed that it is a legislative framework of a bygone era, unfit for the needs of a modern and digitalised maritime ecosystem.

The Indian Ports Bill, 2025 is our answer to this challenge. It is the product of extensive consultation with coastal states, industry stakeholders, and the public, embodying the spirit of cooperative federalism,” the Minister stated. 

The Indian Ports Bill, 2025: Key highlights

The bill seeks to mirror the integrated planning models of Singapore and adopt the stringent environmental safeguards of the European Union, ensuring that Indian ports evolve into hubs of sustainable growth. 

To strengthen coordination between the Centre and States, the legislation establishes the Maritime State Development Council (MSDC) as a recommendatory body that will provide policy advice and ensure a consultative framework across jurisdictions. It aims to establish and strengthen State Maritime Boards for the efficient management of non-major ports

It further provides for the management of pollution, disasters, emergencies, security, safety, navigation, and port-related data. The legislation also ensures compliance with India’s obligations under international conventions, introduces measures for the conservation of ports, and sets up adjudicatory mechanisms for the resolution of port-related disputes. 

A key provision mandates the electronic publication of port tariffs, designed to foster transparency, fair competition, and a level playing field for port operators.

To further streamline operations, the bill introduces State-level Dispute Resolution Committees, offering a speedy and transparent mechanism for addressing port-related conflicts, thereby reducing legal delays.

On the environmental front, the bill enforces compliance with international conventions such as the International Convention for the Prevention of Pollution from Ships (MARPOL), reflecting India’s commitment to sustainable maritime practices.  

The minister stated that penalties and fines have been revised and decriminalised where appropriate, adding that non-criminal violations and their corresponding penalties may now be imposed by the Port Conservator.

Mr. Sonowal stressed that this reform is not merely about keeping pace with global standards but about positioning India as a global maritime leader by 2047, aligning with the national vision of Viksit Bharat. By modernising legal frameworks, enhancing transparency, and adopting best practices, the Indian Ports Bill, 2025 is expected to accelerate economic growth, improve governance, and strengthen India’s role in international maritime trade.

India’s maritime sector on the rise: Landmark achievements in FY 2024-25

India’s Major Ports have shown steady progress over the past decade, with FY 2024-25 standing out as a milestone year marked by significant achievements in cargo handling, operational efficiency, and infrastructure modernisation.

During the fiscal, major ports recorded an annual growth of 4.3% in cargo traffic, rising from 819 million tonnes in FY 2023-24 to nearly 855 million tonnes in FY 2024-25. This growth reflects the resilience and growing capacity of Indian ports in meeting increasing trade demands. The surge was largely driven by higher container throughput (10%), fertilizer cargo (13%), petroleum, oil and lubricants (POL) cargo (3%), and miscellaneous commodities (31%) compared with the previous year.

In terms of commodity share, POL—including crude, petroleum products, and LPG/LNG—remained the largest contributor, accounting for 254.5 million tonnes or 29.8% of total traffic. This was followed by container cargo at 193.5 million tonnes (22.6%), coal at 186.6 million tonnes (21.8%), and other categories such as iron ore, pellets, and fertilizers.

Notably, for the first time, the Paradip Port Authority (PPA) and Deendayal Port Authority (DPA) each crossed the 150-million-tonne cargo handling mark, reaffirming their position as key hubs of maritime trade. At the same time, the Jawaharlal Nehru Port Authority (JNPA) achieved record container handling of 7.3 million TEUs, reflecting a robust 13.5% year-on-year growth.

Promoting port-led industrialisation, Major Ports collectively allocated 962 acres of land in FY 2024-25, generating revenues of ₹7,565 crore. Future lessee investments on the allotted land are expected to reach ₹68,780 crore, reinforcing investor confidence in India’s maritime growth story. Private participation has also expanded, with investments in PPP projects tripling from ₹1,329 crore in FY 2022-23 to ₹3,986 crore in FY 2024-25.

Operational metrics improved significantly, with Pre-Berthing Detention (PBD) Time reducing by about 36% year-on-year. 

Financially, Major Ports registered an 8% rise in income, increasing from ₹22,468 crore in FY 2023-24 to ₹24,203 crore in FY 2024-25, while operating surplus grew by 7% to ₹12,314 crore.

From FY 2014-15 to FY 2024-25, cargo volumes increased from 581 million tonnes to about 855 million tonnes, representing a steady CAGR of nearly 4%. Over the same period, containerized cargo expanded by an impressive 70%, rising from 7.9 million TEUs to 13.5 million TEUs. Growth was also evident in conventional commodities, including coal, fertilizers, iron ore, and POL, which registered significant gains across the decade.

As India bolsters its global trade presence and upgrades its logistics infrastructure, FY 2024-25 serves as a testament to the Ministry’s strategic foresight and the collaborative efforts of public authorities and private stakeholders.

Conclusion

The Indian Ports Bill, 2025, ushers in a new era of sustainable and inclusive port development by mandating environmental safeguards, promoting cooperative federalism, and ensuring compliance with global conventions. With record cargo handling, rising private investments, and improved operational efficiency, the maritime sector is on a robust growth trajectory. By modernising governance, encouraging investments, and embedding environmental responsibility, India is set to strengthen its global maritime standing and move closer to achieving the Viksit Bharat vision by 2047.

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