Indian Ports Act of 2025: The need of the times

By Rajesh Menon, Maritime Expert with the Government of India

The law that governed the management of port operations in India for more than a century was the Indian Ports Act of 1908, enacted during the British rule. This Act itself evolved from a regulation introduced by the English East India Company in 1855, known as Act 22 for the “Regulation of Ports and Port Dues.” As history records, the colonial economy thrived through the ports of Calcutta, Madras and Bombay, where travellers moved between India and Europe and raw materials such as cotton were shipped to feed the textile mills abroad. These ports, considered Major Ports at the time, were directly controlled by the government through a corporate body known as the Conservator of Ports—an all-powerful authority that decided on dues and penalties. The Act also defined the roles of pilots, harbour masters and health officers, while codifying key aspects of port operations such as mooring, warping and ballasting, in addition to prescribing various levies and port dues.

Surprisingly, independent India continued to operate under this colonial framework for seventy-eight years after gaining independence, despite the fact that the maritime ecosystem had changed drastically in terms of port types, vessel technology, business practices and international conventions. The first attempt to replace this outdated Act came in 2011, but real momentum was seen in 2019 when a draft of a new bill was circulated among stakeholders. After multiple revisions, the bill was introduced in the monsoon session of Parliament in 2025, where it was passed by both houses and now awaits presidential assent before being notified as an Act.

Transformation of ports was the impetus

The need to replace the old law stems from the transformation of ports from colonial revenue-collecting points into modern service hubs that compete in a free market by reducing costs, ensuring sustainability and complying with international standards. Following the privatisation of the sector, numerous private ports now operate under public-private partnership models, paying royalties to state governments, while private operators also manage terminals in Major Ports functioning under a landlord model. Today, India’s maritime network has expanded to include 12 Major Ports and 66 operational non-major ports, among a coastline that features over 217 notified ports stretching across 7,500 kilometres. 

With the increasing importance of multimodal transportation that seamlessly integrates road, rail and inland waterways, as well as the growth of coastal shipping and cruise tourism, ports can no longer be viewed in isolation.\Changing global trade Global trade has also evolved since the nineteenth century, with international maritime organisations, particularly the International Maritime Organization (IMO), setting binding standards for sustainability, ocean safety and pollution control, to which India is a signatory. Compliance with these standards is now essential to ensure the navigational safety and security of ports, which are critical for the wider logistics ecosystem. Furthermore, the need for national-level planning of multimodal transport has become urgent, as it directly influences logistics costs and efficiency. Advances in digital and technology-based systems have also transformed port management processes, something unimagined when the 1908 Act was framed. Bringing all stakeholders under a single framework through an apex agency required a new legislative framework.

The Indian Ports Act of 2025 addresses this need by creating the National Maritime Development Council, which will include representation from both Major and non-major ports. This body will provide strategic direction for port-related planning and ensure that India’s maritime sector keeps pace with global practices. The Act introduces a structured dispute-resolution mechanism with clear appellate provisions, integrates up-to-date IMO conventions relating to pollution prevention and safety, and rationalises penalties to serve as effective deterrents.

The Act also will have a robust dispute resolution mechanism, where disputes that arise are resolved at appropriate levels and with in-built appellate arrangements. Similarly, all the up-to-date IMO conventions pertaining to prevention of pollution and other mandates will form part of the Act. Penalties will be more rationalised and will act as a deterrent. 

This reform is not merely a case of repackaging old wine in a new bottle, but rather the crafting of a fresh and forward-looking law aligned with India’s maritime vision.

The law that governed the management of port operations in India for more than a century was the Indian Ports Act of 1908, enacted during the British rule. This Act itself evolved from a regulation introduced by the English East India Company in 1855, known as Act 22 for the “Regulation of Ports and Port Dues.” As history records, the colonial economy thrived through the ports of Calcutta, Madras and Bombay, where travellers moved between India and Europe and raw materials such as cotton were shipped to feed the textile mills abroad. These ports, considered Major Ports at the time, were directly controlled by the government through a corporate body known as the Conservator of Ports—an all-powerful authority that decided on dues and penalties. The Act also defined the roles of pilots, harbour masters and health officers, while codifying key aspects of port operations such as mooring, warping and ballasting, in addition to prescribing various levies and port dues.

Surprisingly, independent India continued to operate under this colonial framework for seventy-eight years after gaining independence, despite the fact that the maritime ecosystem had changed drastically in terms of port types, vessel technology, business practices and international conventions. The first attempt to replace this outdated Act came in 2011, but real momentum was seen in 2019 when a draft of a new bill was circulated among stakeholders. After multiple revisions, the bill was introduced in the monsoon session of Parliament in 2025, where it was passed by both houses and now awaits presidential assent before being notified as an Act.

Transformation of ports was the impetus

The need to replace the old law stems from the transformation of ports from colonial revenue-collecting points into modern service hubs that compete in a free market by reducing costs, ensuring sustainability and complying with international standards. Following the privatisation of the sector, numerous private ports now operate under public-private partnership models, paying royalties to state governments, while private operators also manage terminals in Major Ports functioning under a landlord model. Today, India’s maritime network has expanded to include 12 Major Ports and 66 operational non-major ports, among a coastline that features over 217 notified ports stretching across 7,500 kilometres. 

With the increasing importance of multimodal transportation that seamlessly integrates road, rail and inland waterways, as well as the growth of coastal shipping and cruise tourism, ports can no longer be viewed in isolation.

Changing global trade

Global trade has also evolved since the nineteenth century, with international maritime organisations, particularly the International Maritime Organization (IMO), setting binding standards for sustainability, ocean safety and pollution control, to which India is a signatory. Compliance with these standards is now essential to ensure the navigational safety and security of ports, which are critical for the wider logistics ecosystem. Furthermore, the need for national-level planning of multimodal transport has become urgent, as it directly influences logistics costs and efficiency. Advances in digital and technology-based systems have also transformed port management processes, something unimagined when the 1908 Act was framed. Bringing all stakeholders under a single framework through an apex agency required a new legislative framework.

The Indian Ports Act of 2025 addresses this need by creating the National Maritime Development Council, which will include representation from both Major and non-major ports. This body will provide strategic direction for port-related planning and ensure that India’s maritime sector keeps pace with global practices. The Act introduces a structured dispute-resolution mechanism with clear appellate provisions, integrates up-to-date IMO conventions relating to pollution prevention and safety, and rationalises penalties to serve as effective deterrents.

The Act also will have a robust dispute resolution mechanism, where disputes that arise are resolved at appropriate levels and with in-built appellate arrangements. Similarly, all the up-to-date IMO conventions pertaining to prevention of pollution and other mandates will form part of the Act. Penalties will be more rationalised and will act as a deterrent. 

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