The emphatic victory of the NDA government in 2019 parliamentary elections bode well for the domestic port sector. According to credit rating agency ICRA, this has ensured the continuation of the port led development strategy which has long term benefits for the national economy.
Ravichandran, Senior Vice President & Group Head-Corporate Ratings, ICRA commented, “The reelection of NDA will be credit positive for the domestic port sector, as they are expected to continue with their port led developmental model, which will throw open several business opportunities for the incumbents. During the earlier regime, major policy initiatives were rolled out such as Sagar Mala, reforms on the tariff side for Major Ports, new model concession agreement (MCA) and several trade facilitation measures such as “Direct Port Delivery” model and simplification of customs procedures, which have helped the sector participants. Going ahead, adequate budgetary support will be imperative to realise all the goals identified under the Sagar Mala programme. Moreover, finalization of some of the long pending bills on the governing structure for the major ports will be critical to realise the potential in the sector.”