The Hindu Business Line : Call for national policy on dredging

CONSIDERING the future growth of dredging operations in the country, there is an increasing demand for a national policy on dredging in order to attract more Indian companies into the field.

It is pointed out that dredging operations along the coastline, both maintenance as well capital dredging, will exceed Rs 2,500 crore annually.

In addition, the Sethusamudram canal project will require capital dredging in the region of Rs 2,500 crore spread over a period of two years. Besides, several new projects, which are in the pipeline, account for almost Rs 5,000 crore worth dredging operations.

Sources in the industry said there is lack of supportive policy for the growth of dredging companies despite their vital importance to the economy of the nation. Just as national highways are supported through a national policy, the seaways need the Government's fiscal and policy support, they added.

Worldwide, the sources said, capital dredging and maintenance dredging are supported by the respective national governments. However, the ports and shipping sector in India has attracted little attention of the policy makers and in the absence of appropriate fiscal regime for the growth of Indian companies, this sector fails to create jobs.

The dredging sector functions in a fragmented manner. There is lack of expertise in assessing the dredging requirements and planning the development of the ports accordingly, sources said.

Investments in dredging have been minimal and are a cause for concern given that 90 per cent of exim trade takes place through ports, sources said. At present, foreign cartels and consortia of dredging companies corner the bulk of dredging operations in India with exorbitant rates and thereby maintain their monopoly. It is often alleged that foreign flagged dredgers do not adhere to norms and rules along the coastline.

Though India has to abide by its commitment to the WTO in the maritime sector, it is to be noted that the WTO commitments are binding only to international shipping. The WTO has left the coastal shipping sector totally unbound whereby the individual country is free to decide its own norms and rules.

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