<p data-path-to-node="2">In a major regulatory reform aimed at accelerating private sector investment across India’s maritime gateways, the Union Cabinet has approved a <b data-path-to-node="2" data-index-in-node="163">revised Captive Policy</b> for allocating waterfront facilities and land to Port Dependent Industries (PDIs) at major ports.</p><p data-path-to-node="3">Replacing the earlier 2016 framework, the updated policy allows major port authorities to extend concession agreements for up to <b data-path-to-node="3" data-index-in-node="129">30 years without fresh tendering</b>, grants existing operators the <b data-path-to-node="3" data-index-in-node="193">Right of First Refusal (RoFR)</b> for berth capacity expansions, and enables direct land allocation to eligible government entities at floor prices. According to Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, the framework provides long-term operational predictability while driving port-led industrialization.</p><h3 data-path-to-node="5"><b data-path-to-node="5" data-index-in-node="0">Key Policy Provisions, Concession Terms, and Commercial Framework</b></h3><p data-path-to-node="6">The updated framework balances long-term investor stability with asset optimization across major public ports:</p><ul data-path-to-node="7"><li><p data-path-to-node="7,0,0"><b data-path-to-node="7,0,0" data-index-in-node="0">30-Year Concession Extensions:</b> Major Port Authorities can renew existing captive agreements for up to 30 years without initiating fresh public tenders. Renewal charges will be calculated at either the prevailing market rate or the indexed revenue share—whichever is higher—ensuring commercial returns for port authorities.</p></li><li><p data-path-to-node="7,1,0"><b data-path-to-node="7,1,0" data-index-in-node="0">Capacity Expansion &amp; Right of First Refusal (RoFR):</b> Captive operators seeking to add berths, jetties, or Single Buoy Moorings (SBMs) can utilize a streamlined expansion framework. Ports will determine market price discovery via competitive bidding among eligible PDIs handling similar cargo, with the incumbent concessionaire retaining the RoFR to match the top bid.</p></li><li><p data-path-to-node="7,2,0"><b data-path-to-node="7,2,0" data-index-in-node="0">Direct Nomination Route for PSUs:</b> Waterfront and associated land can be allocated directly without competitive bidding to central or state departments, statutory bodies, and government-controlled PSUs operating in strategic sectors such as petroleum, oil &amp; gas, fertilizers, coal, and steel at notified floor rates.</p></li><li><p data-path-to-node="7,3,0"><b data-path-to-node="7,3,0" data-index-in-node="0">Flexibility for Changing Cargo Profiles:</b> To adapt to dynamic trade flows, the policy introduces provisions for <i data-path-to-node="7,3,0" data-index-in-node="111">Change in Law</i> and <i data-path-to-node="7,3,0" data-index-in-node="129">Unforeseen Events</i>, permitting concessionaires to adjust operational business plans and cargo handling profiles after a defined lock-in period.</p></li></ul><h3 data-path-to-node="9"></h3>