“Land banks” have the potential to significantly contribute to the expansion of India’s economy and ease of doing business. Talk about it.
Jawaharlal Nehru Port (JNP) is one of the leading container ports of the country and is ranked 26th among the top 100 global ports. It is a container handling port accounting for around 50% of the total containerized cargo volume. The JNP became the first 100% Landlord Major Port of India. A LandlorRead more
Jawaharlal Nehru Port (JNP) is one of the leading container ports of the country and is ranked 26th among the top 100 global ports. It is a container handling port accounting for around 50% of the total containerized cargo volume. The JNP became the first 100% Landlord Major Port of India.
A Landlord Port is characterized by its mixed public-private orientation. Under this model, the port authority acts as the regulatory body and landlord, while port operations (especially cargo handling) are carried out by private companies. Today, the Landlord Port is the dominant port model in larger and medium-sized ports.
The features of the Landlord Port include:
- The port authority manages the basic port assets by letting land and infrastructure to port operators in an efficient manner. It would also be involved in planning, lease negotiation, safety, navigation and overall coordinating functions.
- Cargo services, marine service, ancillary services, berths etc. are privatised on captive/BOT(Build-Operate-Transfer) basis to the primary port users.
- Port operators and other undertakings which need to be located in the port, lease the land, infrastructure and associated services and provide them to the secondary users cargo owners, ship owners and cargo ship owners.
Other types of models employed in port management are as follows:
- Public service port model: In this model, the public authority owns the land and all available assets-fixed and mobile-and performs all regulatory as well as operational tasks. The main objective is to provide a smooth and secured transaction through the port and create employment rather than focusing on profit.
- Tool port model: It is close to the public service port model with the public authority owning all the land and providing all the infrastructure and superstructure including, cranes, port control equipment, and other supplies. The port operator uses the provided equipment to continue the port operation. A tool port is a transitional form between a public service port and a landlord port.
- Corporatized port model: These ports are almost entirely privatized, with the exception that the ownership remains public and often assumed as a majority shareholder. The port authority essentially behaves as a private enterprise. This management model is unique since it is the only one where ownership and control are separated.
- Private service port model: The port authority is entirely privatized with almost all the port functions under private control with the public sector retaining a standard regulatory oversight. Still, public entities can be shareholders and thus gear the port towards strategies that are deemed to be of public interest.
The government enacted the Major Port Authorities Act, 2021 to empower the ports and enable them to perform with greater efficiency on account of increased autonomy in decision-making and by modernizing their institutional framework. Further, as part of the Maritime India Vision (MIV) 2030, globally benchmarked targets have been defined to help India develop best-in-class port infrastructure.
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Land banks are government agencies or private organisations that help manage and dispose of vacant properties, vacant land, or tax-delinquent properties so that these can be redeveloped for more productive use. Adoption of the idea of land banks has the following advantages: Ready availability of laRead more
Land banks are government agencies or private organisations that help manage and dispose of vacant properties, vacant land, or tax-delinquent properties so that these can be redeveloped for more productive use. Adoption of the idea of land banks has the following advantages:
However, pursuing the idea of land bank scheme may not always lead to expected results and could create various issues, such as
In order to make land banks a robust strategy, associated concerns should be given adequate attention. Reforms including creation of a land record repository, digitization and integration of all records relating to land ownership titles, adequate checks and balances, defining a structured timeline for timely resolution of property disputes etc. need to be adopted.
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