22 Sep 2025
The introduction of the Indian Ports Act, 2025 marks a significant transformation in India’s port sector. This new law replaces a century-old statute, building a contemporary regulatory ecosystem focused on decentralised governance, statutory recognition of critical industry bodies, and a refreshed suite of compliance mandates. This update sets out the key highlights of the Indian Ports Act, 2025, and explores how it may reshape strategies for port developers, operators, and the broader maritime community.
Partner: Neeraj Menon, Counsel: Kaneeka Mehta, Associate: Manasvi Sharma
On 21 August 2025, the central government notified the Indian Ports Act, 2025 (Ports Act), repealing the century-old Indian Ports Act, 1908 (Repealed Ports Act), ushering in a new era of governance and regulatory reform in the Indian ports sector. While consolidating the laws governing Indian ports, the Ports Act aims to promote integrated port development, facilitate ease of doing business and ensure the optimum utilisation of India’s coastline.
Ports in India are traditionally classified as either a major port or a non-major port. As of March 2025, there are 12 major ports and 213 non-major ports in India, out of which cargo is handled at 67 non-major ports. While the major ports are under the administrative control of the Ministry of Shipping, the non-major ports are managed by and under the control of the respective State Maritime Board. The Ports Act introduces ‘mega port‘ as a sub-category of major and non-major ports, with specific classification criteria to be subsequently notified by the central government in consultation with the state government.
With regard to environmental safeguards, in comparison to the Repealed Ports Act, which generally prohibited the discharge of ballast or rubbish by vessels, the Ports Act sets out a comprehensive and detailed framework governing environmental protection and pollution control measures, disasters, emergencies, security, and safety relating to ports to ensure compliance with international instruments executed or ratified by India.
The Ports Act introduces a streamlined, decentralised, and unified regulatory regime. It emphasises improving administrative efficiency and clear governance for major and non-major ports, tariff transparency and fostering better coordination between central and state authorities.
The Ports Act applies to all existing and newly notified ports, associated navigable rivers or channels, and all vessels and water-borne aircraft operating within the designated port limits, unless specifically exempted by the central government or vessels used for armed forces or in non-commercial service of the central or state government.
The key highlights and features of the Ports Act are discussed in detail below.
The Ports Act has officially granted statutory recognition to the Maritime State Development Council (MSDC), which was initially constituted in May 1997. The MSDC is chaired by the Minister of Ports, Shipping and Waterways and comprises:
The key functions of the MSDC include:
While the MSDC has played an important advisory role in fostering dialogue between the Centre and States, its statutory recognition is expected to enable a more structured and consistent framework for effective planning, streamlined approvals, and uniform regulatory practices.
The Ports Act grants statutory recognition to existing State Maritime Boards in Gujarat, Maharashtra, Tamil Nadu, West Bengal, Karnataka, Kerala, Andhra Pradesh, and Odisha. States currently without such a board are now mandated to establish and notify their respective State Maritime Boards within six months. These boards are responsible for the administration and regulation of non-major ports within their states, with functions including infrastructure planning and development, licensing, tariff determination, and ensuring compliance with safety, security, and environmental requirements. Upon the establishment or notification of a State Maritime Board, the State Government will transfer and vest in it all port-related land, assets, funds, its rights to levy fees, and employees, and the State Maritime Board will assume all existing debts, obligations, contracts, and legal proceedings, as a distinct legal entity under law.
The relevant government will appoint a ‘Conservator‘ for each port or group of ports. Each port will also appoint a harbour master or other port officer who will act under that Conservator’s supervision and control.
The Conservator’s key functions include:
The relevant government may also appoint a health officer for a port, who will have the powers to inspect vessel provisions, water, sanitation, and accommodation, medically examine seafarers, and demand logbooks and relevant documents for health inquiries.
The Ports Act outlines specific penalties for damage to port property or obstruction of its use or operation, and specifically prohibits tampering with vessel moorings, discharging firearms, causing or risking fires, using defective vessels, disturbing waterbeds or structures, damaging banks or shores, and unauthorised vessel movement.
The Ports Act imposes responsibility on all concerned stakeholders for the implementation of environmental protection measures. The key obligations in this regard include:
The tariff for a major port will be fixed by the: (i) Board of Major Port Authority, or (ii) Board of Directors of a port, if registered as a company. The tariff for a non-major port will be fixed by the State Maritime Board or a concessionaire authorised by it.
Once fixed, the tariff must be published electronically by the responsible entity and will become effective thirty days after its publication.
Port clearance will not be granted to any vessel until the fees, fines, penalties and all other expenses liable to be paid by the vessel have been paid to the satisfaction of the officer granting such clearance. Refusal to pay fees or other charges will result in detention and sale of the vessel.
Schedule 1 and Schedule 2 of the Ports Act set out the offences and contraventions, along with corresponding penalties. These penalties range from imprisonment for up to six months to a fine of up to INR 2,00,000, or both, depending on the nature of the offence and contravention.
State governments will constitute a dispute resolution committee (DRC) to adjudicate disputes between non-major ports, concessionaires, users and service providers within the state, unless the parties have mutually agreed to arbitration or any other alternate dispute resolution mechanism. Appeals against orders of the DRC will lie before the respective High Court, and the civil courts will not have jurisdiction over matters entrusted to the DRC.
The Ports Act marks a significant shift from a fragmented regime to a future-ready framework, aimed at bringing India’s port sector closer to global standards of governance, sustainability and efficiency. The statutory recognition of the MSDC and State Maritime Boards establishes a crucial foundation for consistent governance and improved coordination across ports. Transparent and well-defined tariff-setting mechanisms introduce greater predictability for port users and operators, while robust environmental and safety framework will ensure compliance with international conventions on sustainable environment. Further, with the facilitation of the development and administration of mega ports, these reforms resulting in the consolidated and comprehensive legislation are expected to attract increased private and foreign investment. Port developers, operators, logistics providers, financiers, and infrastructure players must ensure operational compliance with the requirements of the Ports Act at the earliest to effectively align with the sector’s evolving regulatory and commercial landscape.
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