The Major Ports Authorities Bill 2016 will replace the Major Port Trusts Act 1963, the government said in a statement.
The bill is aimed at reorienting the governance model in central ports to the landlord port model in line with successful global practices, it added.
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.
Here, the port authority maintains ownership of the port while the infrastructure is leased to private firms that provide and maintain their own superstructure and install their own equipment to handle cargo.
As per the new bill, port authorities will be able to lease land for port activities for up to 40 years, and for non-port activities up to 20 years. Government approval will be required for longer leases.
The composition of a port board has also been simplified under the bill; it will now consist of 10 members, including three to four independent members instead of 17 to 19 under the existing model.