The Gujarat government has granted private ports a 30-year concession period on a Build-Own-Operate-Transfer (BOOT) model, after which ownership reverts to the state. Adani Ports, India’s largest port operator, currently controls three major ports — Mundra, Hazira and Dahej — under this framework.
However, in a move that has sparked significant controversy, Adani Ports requested the Gujarat Maritime Board (GMB) to extend this concession period by an additional 45 years, taking the total to 75 years — well beyond the permissible 50 years.
The GMB acted swiftly to pass on this request to the Gujarat government, even bypassing its own board's approval, leading to the return of the file for reconsideration.
In response, the GMB's board initially recommended that the Gujarat government should safeguard its revenue interests by either inviting bids from other operators or renegotiating the financial terms with Adani after the first 30 years.
However, under apparent pressure, the GMB then reversed its stance, proposing instead an extension of Adani's concession without competitive bidding or renegotiations. This proposal quickly received approval from the chief minister and other stakeholders, fast-tracking the process through the necessary clearances.
Terming it 'daylight robbery', Congress leader Jairam Ramesh listed two serious consequences from this development: 'Adani Ports will secure a monopoly on Gujarat’s port sector, harming market competition and driving up prices for the common man. Adani Ports will see its valuation rise and borrowing costs fall.'
The Gujarat Government grants private ports a 30-year concession period on a Build-Own-Operate-Transfer (BOOT) basis, after which ownership gets transferred to the Government of Gujarat. On the basis of this model, Adani Ports currently has control over Mundra, Hazira, and Dahejâ¦
— Jairam Ramesh (@Jairam_Ramesh) August 14, 2024
In a post on X, Ramesh wrote, 'By failing to open up the process to a renegotiation or competitive bidding, the government of Gujarat will lose crores of rupees in revenues. Modi hai toh Adani ke liye sabkuch mumkin hai [everything is possible for Adani if Modi is there]! This is why a joint parliamentary committee (JPC) investigation is essential.'
As Ramesh points out, two major concerns have emerged around this decision. First, the extension of the concession period will solidify Adani Ports’ monopoly over Gujarat’s port sector, potentially stifling competition and leading to increased costs for consumers.
Adani Ports' financial position, though, would benefit significantly from the extension, with the company’s valuation rising and its borrowing costs potentially decreasing.
Secondly, by failing to open up the process to competitive bidding, the Gujarat government risks losing a substantial increase in revenue, with no chance for other operators to challenge Adani's dominance in the port sector.
These developments have intensified calls for a joint parliamentary committee (JPC) investigation from the opposition. Critics argue that the extension of Adani's control, without due competition and other safeguards, harms the interests of both the state and the public. Adani Ports and Special Economic Zone Ltd has already drawn significant investments from mutual funds — amounting to Rs13,024.22 crore across 111 funds, with major contributions from SBI Nifty 50 ETF, Kotak Equity Arbitrage Fund and SBI Arbitrage Opportunities Fund.
With a stronghold over India’s coastline, Adani Ports manages 14 strategically located ports and terminals, with a presence on both the east and west coasts. Its handled more than 50 per cent of the cargo share through India's non-major ports, the company's cargo handling volumes having grown at an impressive compounded annual growth rate of 14 per cent, far outpacing the industry’s 4 per cent.
The implications of this concession period extension, coupled with Adani Ports’ expanding footprint, raise serious concerns about the future of competition, transparency and revenue generation in Gujarat's port secto
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