Why in the News
Concessions for Gujarat’s Pipavav and Mundra ports near expiry, reopening the debate on the Build-Own-Operate-Transfer (BOOT) model and how India structures private port infrastructure.
What is the BOOT model?
- Definition: Under Build-Own-Operate-Transfer (BOOT), a private operator finances, builds, and runs an asset for a fixed concession period, then transfers it back to the public authority.
- Application: Gujarat’s 1997 BOOT framework let private players develop ports like Mundra and Pipavav on state maritime board land.
What is at stake as concessions expire?
- Asset transfer terms: Expiry forces a decision on renewal, renegotiation, or transfer of high-value operating ports.
- Investment signal: The treatment of expiring concessions shapes confidence for greenfield private ports such as Vizhinjam and Dhamra.
- Federal split: Major ports fall under the Centre while non-major ports like Gujarat’s fall under state maritime boards, complicating policy.
“[2026] Consider the following statements with reference to the Sagarmala Programme of the Government of India :
I. The Sagarmala Programme seeks to achieve port-led economic growth through cost-effective and sustainable coastal infrastructure.
II. The success of the Sagarmala Programme is reflected in significant growth in coastal and inland waterway shipping, along with improved global port rankings.
III. Sagarmala 2.0 aims to position India as global maritime innovation hub aligned with Atmanirbhar Bharat and Viksit Bharat 2047 visions.
Which of the following relationships among the above statements is/are correct?
1. Statement II validates the effectiveness of the strategies envisioned in statement I.
2. Statement III extends the objectives of statement I by embedding them into a future-oriented innovation framework.
3. Statement I contradicts statement III by focusing only on traditional infrastructure instead of modern innovation.
Select the answer using the code given below:
[A] 1 only
[B] 1 and 2
[C] 2 and 3
[D] 3 only