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04 Mar

Rajya Sabha passes Indian Ports Bill, 2025, replacing colonial-era law

ANALYSIS

The Rajya Sabha passed the Indian Ports Bill, 2025 on 18 August 2025 through a voice vote, completing Parliament’s approval after it was cleared earlier by the Lok Sabha on 12 August 2025. The legislation seeks to replace the century-old Indian Ports Act, 1908, marking a decisive shift from colonial-era port regulation toward a modern, integrated maritime governance framework.

The Bill aims to consolidate port-related laws, promote integrated port development, enhance ease of doing business, and ensure optimum utilisation of India’s coastline. It provides statutory backing to the Maritime State Development Council (MSDC) as a consultative body to strengthen Centre–State coordination and prepare a National Perspective Plan for structured port-led growth.

It also empowers States to establish or strengthen State Maritime Boards (SMBs) for effective governance of ports other than major ports.A key reform dimension is the introduction of sector-specific Dispute Resolution Committees, decriminalisation of certain offences, and improved transparency in port tariff mechanisms. The Bill further mandates compliance with international environmental conventions such as MARPOL and the Ballast Water Management Convention, along with provisions for pollution control, disaster management, emergency preparedness, security, navigation, and data management at ports.

The maritime sector’s expansion over the past decade forms the backdrop of this reform. Cargo handling at major ports increased from 581 million tonnes in 2014–15 to 855 million tonnes in 2024–25, while overall port capacity expanded by 87 percent. Average ship turnaround time reduced from 93 hours to 48 hours, aligning with global benchmarks. Coastal shipping volumes increased by 180 percent, and inland waterway cargo movement rose nearly sevenfold. 

The government asserts that the new law positions India alongside leading maritime nations and supports its ambition of becoming a global maritime power by 2047.However, earlier drafts of the Bill had faced opposition from certain coastal states over concerns of centralisation of powers through the MSDC. The introduced version reportedly incorporates wider consultations and adopts a more reconciliatory approach, balancing cooperative federalism with national maritime planning objectives.


NECESSARY STATIC PART (UPSC RELEVANCE)

  • Replaces: Indian Ports Act, 1908
  • Type of Bill: Ordinary Bill
  • Lok Sabha Passage: 12 August 2025
  • Rajya Sabha Passage: 18 August 2025
  • Key Institution Created: Maritime State Development Council (Statutory Body)
  • Federal Aspect: Empowers State Maritime Boards
  • International Compliance: MARPOL & Ballast Water Management Convention
  • Sector Data (2024–25): 855 million tonnes cargo handling at major ports
  • Constitutional Context: Ports fall under Union List (Entry 27), Major Ports under Union control; Non-major ports administered by States

  • Merchant Shipping Act, 2025: Replaces the Merchant Shipping Act, 1958.
  • Coastal Shipping Act, 2025: Replaces Part XIV of the Merchant Shipping Act, 1958.
  • Carriage of Goods by Sea Act, 2025: Repeals and replaces the Indian Carriage of Goods by Sea Act, 1925.
  • Bills of Lading Act, 2025: Replaces the Indian Bills of Lading Act, 1856

Updated - 18 August 2025 | 7:30 PM

News Source: DD News

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