Mains Daily Question
Oct. 9, 2023
Q1. Jawaharlal Nehru Port has become the first major port of the country to become 100% Landlord port. What do you understand by the landlord model of port development? Highlight the significance of the model to achieve the objectives of port-led development in India. (10M, 150W)
|
Approach to the answer: Understanding and structuring the answer: The question has two main headings: 1) Objectives of port-led development in India and 2) Significance of the Landlord port model. Introduction: Type 1: Describe the arrangements in the Landlord model. Type 2: Write about the vision of port-led development and link it to the landlord model. Use recent examples. Body: Heading 1: Objectives of port-led development in India: Mention the multi-dimensional objectives of the programme. Heading 2: Significance of the Landlord port model: Mention the significance of the model in achieving the objectives. For value addition, use institutional data, report findings, etc. Conclusion: Type 1: Mention the significance of the landlord model and port-led development for economic prosperity. Type 2: Suggestions under the way forward can be used to write a conclusion. |
Answer: In the landlord port model, the publicly governed port authority acts as a regulatory body and as landlord while private companies carry out port operations like cargo-handling activities using their own superstructure and equipments. In return, the landlord i.e., port authority gets a share of the revenue from the private entity.
Objectives of port-led development in India
The concept of "port led development" is central to the Sagarmala Project vision. Its objectives are:
- Reducing cost of transporting domestic cargo utilizing multimodal connectivity to ports.
- Developing future industries near the coast.
- Optimizing time of EXIM container movement.
- Reducing logistics costs.
- Improving export competitiveness by developing manufacturing clusters near the ports.
- Creating employment opportunities for coastal communities
Significance of the Landlord port model
- Brings efficiency in port operations as private operators are incentivized to optimize their operations for profit maximization.
- For example: Increase in number of cargos handled per hour, decrease in average ship turnaround time, etc.
- Increased private investment in modernizing and upgrading port infrastructure, leading to the development of world-class port facilities in India.
- Better service delivery as the model invokes competition among the private players leading to lower costs and increased innovation.
- For example: Government has awarded 81 PPP projects of more than Rs 42,400 crore for developing berths and terminals across the major ports till FY25.
- Maintaining public accountability as port authority holds the ownership over the port, ensuring that private operators adhere to the rules and regulations governing the port.
- For example: Safety, security and environmental protection norms to be followed.
- Employment generation would be enhanced because of increased investment and efficiency, increasing volume of work, etc.
- For example: Infusing coastal community development under SagarMala project with the landlord model.
Overall, the landlord port model, with private sector participation and government oversight, has the potential to drive economic growth and enhance competitiveness. This will increase India’s export competitiveness and economic growth of the country in the long run.
