The Hindu Business Line : Cruising for investment

EVEN as the Ministry of Shipping, Road Transport and Highways is in the process of formulating a policy to encourage cruise shipping, the Parliamentary Committee has asked the Department of Shipping to take steps "at the earliest" to attract investments from the private sector to create infrastructure and other facilities for development of cruise shipping, especially in ports on the eastern parts of the country, including Andaman and Nicobar and Lakshdweep Islands.

A working group with representatives from the Department of Tourism, Department of Shipping, major ports and industry had recommended that six major ports — Mumbai, Mormugao, New Mangalore, Kochi, Tuticorin and Chennai — be selected for the development of infrastructure so that India could emerge as a major tourist destination.

The working group had recommended that in the second phase, infrastructure development at the major port of Kolkata and minor ports at Puri, Porbandar and Port Blair be taken up.

As for funds, the inter-ministry working group has encouraged ports to develop infrastructure facilities if they are able to attract a build operate transfer (BOT) operator.

"The development of cruise tourism infrastructure is to be done through port resources, financial support from Ministry of Tourism as well as private sector investment," the working group had recommended.

Globally, there is an annual incremental growth of 10-20 per cent in the cruise ship fleet and passengers carried. However, Indian coastline is not witnessing the same growth pattern as mentioned.

Experience in the Caribbean, Latin American and South-East Asian countries indicate that cruise shipping sector can be a good forex earner.

The Committee felt that Inland Water Transport (IWT) was another sector that called for immediate attention. Calling IWT as the "most neglected sector", it pointed out that despite its economic potential, it accounts for merely 0.15 per cent of the cargo movement in the country.

Also, the Department of Shipping has been asked to address issues regarding the development of adequate infrastructure facilities such as fairways, terminal and navigational aids on the three existing National Waterways. Apart from this, the Committee also expressed concern over the fact that Government had not made much effort to improve the financial health of Central Inland Water Transport Corporation Ltd.

It stated, "in spite of repeated recommendation in the past, the Government has not yet been able to come out with a complete blueprint for making full use of the existing assets of the company in ensuring possibilities such as merger with similar entities and integration with Inland Water Transport."

The Department of Shipping has referred the case of Central Inland Water Transport Corporation to the Board for Reconstruction of Public Sector Enterprises for their consideration and recommendation.

This followed a Cabinet decision to do the same since the organisation has not turned around even after being provided a revival package worked out by the Cabinet in 2001, which envisaged financial assistance of Rs 139.55 crore.

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