Rajya Sabha Passes Indian Ports Bill 2025: Historic Reform Replacing 1908 Law to Modernise India’s Maritime Sector

The landmark Bill repeals the century-old Indian Ports Act, empowers State Maritime Boards, strengthens Centre–State coordination, ensures global environmental compliance, and positions India’s ports for Viksit Bharat 2047.

The Rajya Sabha has passed the Indian Ports Bill, 2025, a sweeping reform to overhaul the governance of India’s maritime sector by replacing the colonial-era Indian Ports Act, 1908.

The Bill, cleared earlier by the Lok Sabha on August 12, now awaits Presidential assent. Once enacted, it will provide a comprehensive framework for regulating port operations, management, levy of fees and tariffs, environmental safeguards, and centre–state coordination.

Union Minister for Ports, Shipping & Waterways, Shri Sarbananda Sonowal, who moved the Bill in the Upper House, hailed it as a milestone, remarking that ports are not just gateways for goods but engines of growth, employment and sustainable development, and that the legislation reflects the vision, transforming India into a global maritime leader by shedding colonial baggage and aligning with international best practices.

India’s maritime system until now was guided by the Indian Ports Act, 1908, which, though pathbreaking in its time, had become inadequate in the face of today’s trade scale, environmental obligations and digital needs. The old Act focused primarily on safety, conservation, and levy of charges, but lacked provisions for modern governance, tariff transparency or dispute resolution.

At present, India has 12 major ports, under the exclusive administration of the Centre through the Major Port Authorities Act, 2021, and 217 non-major ports under the Concurrent List, where both Centre and States can make laws but administration rests largely with the States.

Cargo Traffic in 2023–24 (in million tonnes)

Nearly all coastal States, except Goa, have set up State Maritime Boards to administer these non-major ports. Of the 217, about 66 handle cargo while the rest are largely fishing ports. According to Basic Port Statistics of India (2023–24), the country’s ports handled a total of 1,543 million tonnes of cargo. Major ports accounted for 819 million tonnes (53%), with Paradip (145 MT), Deendayal (132 MT), and JNPT (86 MT) leading, while non-major cargo ports handled 724 million tonnes (47%). Within this, Mundra Port alone handled 173 million tonnes (11%), Sikka 128 million tonnes (8%), while the remaining 64 non-major cargo ports together managed 423 million tonnes (28%). Fishing ports, numbering 151, remain outside commercial cargo networks but are vital to local economies. The imbalance of capacity and regulation between major and non-major ports has long highlighted the urgency for a modern, transparent and uniform law.

The Indian Ports Bill, 2025, seeks to fill this gap. It gives statutory recognition to State Maritime Boards and mandates that they oversee non-major ports with functions such as planning and developing infrastructure, granting licences, fixing tariffs, and enforcing safety, security and environmental compliance. It also formally recognises the Maritime State Development Council (MSDC), which will be chaired by the Union Ports Minister and include coastal state ministers, senior officials of the Navy and Coast Guard, and the Secretary of MoPSW. The MSDC will issue guidelines to ensure transparency of tariffs, prescribe mechanisms for data collection, storage, updation and dissemination, and advise the Centre on legislative adequacy, efficiency of ports, connectivity and formulation of a National Perspective Plan for integrated port development. By doing so, it institutionalises centre–state cooperation, something the old law never provided.

To handle disputes, the Bill requires States to establish Dispute Resolution Committees (DRCs) to adjudicate conflicts involving non-major ports, concessionaires, port users and service providers. Appeals will lie with the High Court, while civil courts are barred from interfering in matters under DRC jurisdiction. However, agreements may also provide for arbitration or alternative dispute resolution.

The Bill also clarifies tariff setting: for major ports, tariffs will continue to be fixed by either the Board of Major Port Authority or the Board of Directors of a company-managed port, while for non-major ports, the power will rest with the State Maritime Boards or their authorised concessionaires.

The law reorganises port administration by designating the Conservator as the chief port officer appointed by the state government for each port or a group of ports, with all other port officers, including harbour masters and health officers, subordinate to them. The conservator retains powers under the 1908 Act, such as issuing directions for anchoring, berthing, vessel movement, obstruction removal and recovery of fees, but new duties are added: issuing directions to prevent spread of contagious diseases, assessing damage to port property, and adjudicating penalties.

Port officers are also empowered with entry and inspection rights, though analysts caution the absence of safeguards against possible misuse.

Environmental sustainability forms a core of the Bill. Ports must now comply with international conventions such as MARPOL (International Convention for the Prevention of Pollution from Ships) and the Ballast Water Management Convention, aimed at preventing pollution and the spread of invasive species. They are required to prepare pollution control, waste reception and handling plans, and disaster management and emergency response systems, all of which will be subject to periodic central government audits. This embeds global compliance into India’s port governance for the first time.

The Bill also updates provisions on offences and penalties. It retains long-standing offences such as failure to comply with conservator directions, refusal of inspection, impeding navigation, damaging port property, unauthorised vessel movement, or evasion of charges.

However, it modernises the enforcement regime by decriminalising some offences and replacing imprisonment with monetary penalties, while introducing compounding for first-time contraventions.

At the same time, it introduces new offences. Commencing port operations without official notification, failing to report pollution incidents or provide adequate facilities, or non-compliance with DRC orders will now invite monetary fines. Endangering vessel safety or disturbing the waterbed without permission will attract imprisonment up to six months, a fine of up to one lakh rupees, or both.

The passage of the Bill comes against the backdrop of a decade of rapid maritime expansion. Cargo handling at major ports rose from 581 million tonnes in 2014–15 to 855 million tonnes in 2024–25, while port capacity grew by nearly 87%. Average ship turnaround time has been reduced to 48 hours, matching global standards. Coastal shipping volumes have grown by 118%, inland waterway cargo movement has multiplied sevenfold, and nine Indian ports are ranked in the World Bank’s Container Port Performance Index. Yet, industry and policymakers agreed that without a modernised law, India risked being constrained by outdated structures that did not match this growth.

Union Minister Sonowal emphasised that the reforms align India with global port leaders such as Singapore, South Africa, the European Union and the United States. He noted that the Bill is not only about efficiency but also about cooperative federalism, ensuring Centre and States work together in advancing port-led growth.

The government has consistently placed port-led development at the heart of its “Amrit Kaal” strategy, with officials stressing that the new law will enhance trade competitiveness, boost private investment, create jobs, and integrate sustainability into India’s maritime operations. By embedding global standards and digitisation measures such as a Maritime Single Window and advanced vessel traffic systems, the Bill seeks to reduce bottlenecks, cut costs and boost transparency.

At the same time, experts have flagged concerns. The Bill does not provide for appeals against penalties imposed by the conservator. Port officers enjoy wide inspection powers without explicit safeguards. And while the MSDC is designed to coordinate centre and state roles, some states remain wary of potential encroachment on their autonomy over non-major ports. These debates are likely to shape implementation going forward.

Comparison between Indian Ports Act, 1908 and Indian Ports Bill, 2025

Despite these concerns, the Indian Ports Bill, 2025 is being hailed as one of the most significant structural reforms in India’s maritime history. It replaces a 115-year-old colonial framework with a law that empowers states, strengthens centre–state coordination, ensures global compliance, and creates a transparent, investor-friendly regime. As India marches towards its centenary of independence, the law is seen as a critical step in achieving the vision of “Viksit Bharat 2047” — a developed nation with a globally competitive maritime sector leading growth across the Indo-Pacific.

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