The Hindu Business Line : Appropriate policies to spur pvt investment in ports: Baalu

Panaji, Jan. 7 The working group on the port sector for the 11th Plan has estimated that a cargo-handling capacity of 1.5 billion tonnes at the country’s ports — both major and non-major — would require an investment of Rs 1.05 lakh crore in next five years.

The Minister for Shipping, Road Transport and Highways, Mr T.R. Baalu, who was here to preside over the ninth meeting of the Maritime States’ Development Council, told newspersons on Monday that the non-major ports would come to play an increasing role in the future as they will be expected to handle 302 million tonnes (mt) of traffic by the end of 2011-12, which is 30 per cent of the total estimated traffic of 1,009 mt, up from the present 27 per cent.

According to him, the Ministry of Shipping has estimated the private sector component of the investment in major ports at Rs 38,000 crore and non-major ports at Rs 29,000 crore.

He promised to take steps to create an enabling environment with appropriate policies in place so as to encourage the seamless flow of private sector investment, duly protecting the users’ interest, for this scale of investment.

Mr Baalu said the Central Government had approved the model concessions agreement for the implementation of infrastructure development projects under the public-private-partnership model in the major ports. He hoped that the non-major ports too would apply this model for attracting investments.

Projects underway

He said that some of the States that currently do not have a maritime board set-up would go in for the same by April this year. These States include Andhra Pradesh, Kerala, Orissa and Goa.

Mr Baalu disclosed that considering the ever-increasing potential of cruise tourism and the consequent development of infrastructure, a comprehensive National Cruise Shipping policy was on the anvil, in consultation with various agencies and stakeholders.

New Shipyards

The Centre is actively considering the setting up of international-size shipyards, at least one each on the east and the west coast of the country, said Mr Baalu. He had already taken up this issue with the Chief Ministers of maritime States seeking concrete proposals for locating such shipyards.