Author – Divyansh Sonkar
Third Year
Vivekananda Institute Of Professional Studies, I.P.U, Delhi
Co-Author – Shivangi Shankar
Second Year
National Forensic Sciences University, Gandhinagar.
1| Introduction
The Indian Ports Act, 2025, represents a transformative milestone in India’s maritime legislative history. Enacted and notified on August 21, 2025, this landmark legislation replaces the century-old Indian Ports Act, 1908—a colonial-era statute that had governed India’s port administration for over 117 years. The passage of this modern legal framework reflects India’s commitment to building a world-class maritime infrastructure aligned with global best practices while simultaneously promoting integrated port development, cooperative federalism, and ease of doing business in the maritime sector. Introduced in the Lok Sabha on March 28, 2025, the Bill was passed by the Lok Sabha on August 12, 2025, and subsequently approved by the Rajya Sabha on August 18, 2025. The new Act consolidates and modernizes the law relating to ports, promotes integrated port development, facilitates ease of doing business, and ensures optimum utilization of India’s extensive coastline spanning over 7,600 kilometers. Against the backdrop of India’s aspirations to become a global maritime leader by 2047 under the Maritime India Vision 2030, the Indian Ports Act, 2025, emerges as a critical piece of legislative infrastructure that simultaneously addresses contemporary challenges of environmental sustainability, digital transformation, and collaborative governance.
2| Evolution from Colonial Legacy to Modern Maritime Framework
The Indian Ports Act, 1908, was drafted during the British colonial administration to serve the administrative needs of a colonial trading economy. Despite its long tenure, the 1908 Act became increasingly inadequate to address the contemporary demands of modern international maritime commerce, containerized cargo operations, environmental concerns, and digital integration. The outdated provisions created governance silos between major and non-major ports, limited transparency in tariff structures, and provided minimal environmental safeguards. The legislative vacuum was particularly evident in the absence of mechanisms for addressing maritime pollution, disaster preparedness, and coordination between central and state governments. The Indian Ports Act, 2025, remedies these deficiencies by introducing a comprehensive, integrated framework that recognizes the evolving nature of maritime commerce and the nation’s environmental obligations.
2.1| Institutional Architecture and Governance Reforms
The Indian Ports Act, 2025, establishes a sophisticated institutional framework designed to promote cooperative federalism and coordinated governance between the central government and coastal states. Section 3 of the Act establishes the Maritime State Development Council (MSDC) as a statutory body with constitutional recognition. The Council is chaired ex officio by the Union Minister for Ports, Shipping and Waterways and includes ministers-in-charge of ports from each coastal state, representatives from the Indian Navy and Coast Guard dealing with coastal security, and the Secretary of the Union Ministry for Ports, Shipping and Waterways serving as Member Secretary. The MSDC’s mandate encompasses advising the central government on formulation of a national perspective plan, issuing guidelines on tariff transparency, overseeing port data collection and submission, and making recommendations on matters related to legislative adequacy, port efficiency, and inter-port connectivity. This institutional innovation ensures that port development decisions are made through consultation between stakeholders, preventing the centralized control that characterized port administration under the 1908 Act.
The Act also provides statutory recognition to State Maritime Boards (SMBs), which are empowered to administer and regulate non-major ports within their respective states. As of March 2025, India possesses 12 major ports administered by Major Port Authorities under the Major Port Authorities Act, 2021, and 213 non-major ports managed by state governments through their respective Maritime Boards. The State Maritime Boards possess comprehensive powers over planning and developing port infrastructure, issuing licenses to operators and concessionaires, fixing tariffs subject to transparency requirements, and ensuring compliance with safety, security, and environmental standards. This decentralized approach recognizes the distinct development profiles and geographic contexts of different coastal states, thereby promoting locally-responsive port development policies.
2.2| Tariff Regulation and Transparency Framework
The Indian Ports Act, 2025, introduces a comprehensive framework for tariff regulation designed to balance commercial efficiency with transparency and stakeholder protection. For major ports, tariffs are set by the Board of the respective Major Port Authority or by the Board of Directors if the port is organized as a company. For non-major ports, tariffs are fixed either by the State Maritime Board or by authorized concessionaires operating at those ports. Critically, all tariff structures must be published online on the port’s website to ensure transparency and enable stakeholders to access information regarding applicable charges. The Maritime State Development Council is specifically mandated to issue guidelines ensuring transparency of port tariffs through consultation with central and state governments. This transparency framework addresses a historical lacuna in port governance, where information asymmetries between port authorities and users often resulted in disputes over legitimate charges. The requirement for electronic publication of tariffs aligns with global best practices and facilitates informed decision-making by port users and investors.
2.3| Dispute Resolution Mechanisms
The Act mandates that each state government must constitute a Dispute Resolution Committee (DRC) to adjudicate disputes arising between non-major ports, concessionaires, port users, and service providers. This institutional innovation represents a departure from the colonial-era regime, which lacked formal mechanisms for resolving port-related disputes. The DRC’s jurisdiction covers a broad range of disputes including those relating to tariffs, service quality, cargo handling, and contractual obligations between ports and their users. Significantly, civil courts are statutorily barred from exercising jurisdiction over these matters, thereby ensuring that port disputes are resolved through specialized, sector-specific mechanisms rather than general litigation. Appeals from the DRC’s orders lie with the High Court within sixty days of the order, providing a structured appellate process that balances expedition with judicial oversight. The Act also permits arbitration as an alternative dispute resolution mechanism, recognizing that sophisticated commercial parties may prefer expedited arbitral proceedings. This framework aligns with international maritime practice and reduces litigation burden on the judicial system.
The legislative intent behind the DRC mechanism is exemplified in the Supreme Court’s judgment in M/s. Duro Felguera S.A. v. M/s. Gangavaram Port Limited (2017) 9 SCC 729, wherein the court recognized the importance of specialized tribunals and dispute resolution mechanisms in maritime commerce. The decision emphasized that arbitration clauses incorporated by reference in maritime contracts require careful drafting to avoid ambiguities in dispute resolution, a principle that the DRC mechanism seeks to operationalize through statutory formalization.
3| Environmental Compliance and Pollution Control
A significant innovation of the Indian Ports Act, 2025, is its comprehensive framework for environmental protection and pollution control. The Act mandates mandatory compliance with international maritime conventions, particularly the International Convention for the Prevention of Pollution from Ships, 1973 (MARPOL Convention), and the International Convention for the Control and Management of Ships’ Ballast Water and Sediments, 2004 (Ballast Water Management Convention). MARPOL, which entered into force in 1983, establishes stringent standards for preventing marine pollution from ships through regulations governing the discharge of oil, noxious liquid substances, harmful substances in packaged forms, sewage, and garbage from ships. The Ballast Water Management Convention requires that vessels maintain ballast water management plans approved by their flag state administrations and engage in ballast water exchanges at prescribed distances from land (not less than 50 nautical miles from baselines) or utilize approved treatment systems. Ships of 400 gross register tonnage and above are required to carry ballast water management certificates demonstrating compliance with these standards.
The Indian Ports Act, 2025, operationalizes these international commitments by requiring all ports to develop comprehensive pollution control plans and disaster management plans subject to central government approval. These plans must address measures for preventing and controlling marine pollution, managing hazardous waste, responding to environmental emergencies, and ensuring port safety and security. The Act mandates periodic central government audits of these plans to verify compliance and assess the effectiveness of pollution prevention measures. Section 52 of the Act, read in conjunction with the Merchant Shipping Act, 1958, establishes penalties for violations of pollution control requirements, thereby creating enforceable legal obligations on port operators. For Indian vessels plying international waters, the Directorate General of Shipping (DGS) Circular No. 32 of 2020 implements the Ballast Water Convention compliance schedule, requiring existing vessels to comply with D-2 discharge standards by the second International Oil Pollution Prevention (IOPP) renewal survey after September 8, 2017, or by September 8, 2024, whichever occurs later. These provisions reflect India’s commitment to achieving Sustainable Development Goal 14 (Life Below Water) through environmentally responsible maritime operations.
4.| Digital Integration and Ease of Doing Business
The Indian Ports Act, 2025, incorporates provisions for comprehensive digitalization of port operations through the Maritime Single Window (MSW-Sagarsetu) platform and other digital integration mechanisms. The MSW is a unified digital portal mandated by the International Maritime Organization (IMO) Facilitation Convention (FAL Convention), which became mandatory for all IMO member states from January 1, 2024. The Maritime Single Window serves as a collaborative platform facilitating electronic exchange of maritime-related information and documents between government authorities, port operators, and stakeholders involved in international maritime trade. The platform enables seamless submission, processing, and exchange of information relating to vessel arrival, stay, and departure, thereby reducing duplication of data submission and streamlining clearance procedures.
The Act mandates that ports integrate their operations with centralized port community systems or Maritime Single Window platforms, thereby promoting interoperability and transparency across India’s maritime sector. The Ministry of Ports, Shipping and Waterways has successfully onboarded all 12 major ports and more than 60 non-major ports on the MSW-Sagarsetu platform as of 2025, with upgrades underway for enhanced integration and cybersecurity. The Ministry has additionally launched the National Safety in Ports Committee (NSPC) application on the National Single Window platform to streamline regulatory processes and improve operational efficiency. This digital transformation is expected to reduce logistics costs by accelerating cargo movement, enhancing connectivity between ports and inland transportation networks, and reducing vessel turnaround times. The implementation of advanced vessel traffic systems and real-time port data analytics will facilitate better port planning and resource allocation.
4.1 | Port Classification and Mega Port Framework.
The Indian Ports Act, 2025, establishes a comprehensive governance framework integrating port classification, operational authority, ownership oversight, and international alignment to modernize India’s maritime infrastructure. The Act introduces a “Mega Ports” designation enabling the central government, in consultation with state governments, to classify strategically significant ports based on cargo-handling capacity and role in national maritime strategy, without altering their fundamental major or non-major status. This overlay classification permits focused policy interventions for high-capacity maritime hubs while preserving existing governance structures under the Major Port Authorities Act, 2021.
The Act designates the conservator—appointed by state governments—as the port officer with supervisory authority over vessel movements, mooring, berthing, obstruction removal, and fee recovery. However, parliamentary proceedings identified a critical lacuna: the Act lacks explicit procedural safeguards against arbitrary exercise of conservator powers and provides no appeal mechanism against levied penalties, creating potential accountability concerns that may require future judicial interpretation.
Port ownership changes undergo mandatory prior central government clearance before any transfer of substantial ownership or effective control, protecting national security and operational continuity. The framework ensures international alignment by mandating compliance with MARPOL Convention, Ballast Water Management Convention, and standardized safety protocols across all ports. The National Perspective Plan formulated by central government in consultation with the Maritime State Development Council provides coordinated development guidance for integrated port growth, replacing the fragmented administrative approach that characterized the 1908 Act.
5.| Case Law Precedents and Judicial Interpretation
The legislative framework established by the Indian Ports Act, 2025, builds upon settled judicial principles regarding port liability and cargo management established through landmark Supreme Court judgments. In The Chairman, Board of Trustees, Cochin Port Trust v. M/S Arebee Star Maritime Agencies Pvt. Ltd. & Ors. (2020) 9 SCC 252, the Supreme Court held that once cargo has been landed at a port and passes into the port’s custody, steamer agents and vessel owners are absolved of all liabilities toward the cargo, including storage and demurrage charges. The decision clarified that port charges are intended to be levied on goods imported and landed in the port premises, not on containers or vessels. This principle informs the liability framework embedded within the Indian Ports Act, 2025, which delineates responsibilities between port authorities, vessel operators, and cargo interests through explicit statutory provisions.
Similarly, in M/v. Nordlake GmbH v. Union of India (Comm. Admiralty Suit No.14 of 2014, Bombay High Court, 2023), the court upheld the shipowner’s right to limit liability under Part XA of the Merchant Shipping Act, 1958, based on international maritime conventions. The decision reinforces the principle of adherence to international maritime law standards, a principle now formalized in the Indian Ports Act, 2025, through its mandatory compliance requirements with international maritime conventions.
5.1 |Exclusions and Applicability
The Act contains specific exclusions clarifying its non-applicability to certain categories of vessels and waterways. The legislation does not apply to specified ports, navigable rivers, aircraft exclusively servicing military or non-commercial government purposes, Indian Navy vessels, Coast Guard vessels, or foreign vessels of war. These exclusions recognize the distinct governance requirements of military maritime operations and inland waterway transportation while focusing regulatory reform on commercial maritime ports.
6.| Conclusion
The Indian Ports Act, 2025, constitutes a watershed moment in India’s maritime governance, marking the transition from colonial-era regulatory frameworks to a modern, integrated system designed to meet contemporary challenges of globalized maritime commerce, environmental sustainability, and digital transformation. Through the establishment of coordinated governance mechanisms such as the Maritime State Development Council, statutory recognition of State Maritime Boards, formalized dispute resolution procedures, and comprehensive environmental compliance frameworks, the legislation promotes cooperative federalism while ensuring that port development remains responsive to local contexts and state-level concerns. The Act’s emphasis on environmental protection through mandatory compliance with MARPOL, Ballast Water Management Convention, and other international maritime standards reflects India’s commitment to sustainable maritime development and its role as a responsible member of the international maritime community. The integration of ports with the Maritime Single Window platform and other digital systems positions India’s ports to compete effectively in an increasingly digitalized global maritime trade environment, reducing transaction costs and enhancing supply chain efficiency.
The replacement of the 1908 Act with this forward-looking legislation sends a powerful signal that India is committed to positioning itself as a global maritime leader by 2047, as envisioned in the Maritime India Vision 2030. The Act balances the legitimate concerns of environmental protection, maritime safety, and financial sustainability with the imperatives of ease of doing business and investor confidence. As implementation proceeds and dispute resolution mechanisms become operational, the Act will establish important jurisprudential precedents regarding tariff regulation, port governance, and environmental compliance. The legislation represents not merely a technical modernization of statutory law but a fundamental reimagining of India’s relationship with its maritime heritage and its role in twenty-first century international maritime commerce.
The success of the Indian Ports Act, 2025, will be measured not merely by the elegance of its statutory provisions but by its capacity to deliver tangible improvements in port efficiency, reduced turnaround times, enhanced environmental sustainability, and increased attractiveness of Indian ports to international maritime commerce. The coming years will witness the operationalization of the Maritime State Development Council, the functioning of Dispute Resolution Committees at non-major ports, the evolution of tariff transparency practices, and the integration of ports with advanced digital systems. Through these mechanisms, the Indian Ports Act, 2025, promises to unlock India’s maritime potential and contribute substantially to the nation’s economic growth trajectory.