Private Sector Participation has been allowed in the major ports for specific projects/berths/terminals through concession agreement for a specific period by way of open competitive bidding process on revenue share/royalty between the major port authority and the concessionaire. After expiry of the concession period, the asset is handed over to the Port Authority.

Rs. 10,000 crore investments through award of Public Private Partnership (PPP) projects for FY 2024-25 at V. O. Chidambaranar Port (Rs. 7,055 crore), Deendayal Port (Rs. 1,880 crore), Syama Prasad Mookerjee Port (Rs. 1,065 crore) are targeted for FY 2024-25. These projects have already been given approval by the government.

In order to provide more autonomy, flexibility and attract private investments, enactment of the Major Port Authorities Act, 2021 by replacing the Major Port Trusts Act, 1963, Revision of Model Concession Agreement (MCA), and Formulation of Guidelines for Tariff Fixation for PPP Projects have been done. This information was given by the Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal in a written reply in Rajya Sabha.