The Hindu Business Line : Rs 50,000 cr needed for development of ports: Montek

RECOGNISING that investments of about Rs 50,000 crore would be required by 2012 for upgradation and modernisation of the 12 major ports in the country, the Government plans to evolve a model concession agreement for the port sector, to facilitate the participation of the private sector.

The concession agreement, which sets out the terms under which the private bidder can operate, will be prepared by an inter-ministerial group by August, the Deputy Chairman, Planning Advisor Planning Commission, Mr Montek Singh Ahluwalia, said on Friday.

Briefing newspersons about the meeting of the Prime Ministers Infrastructure Committee, Mr Ahluwalia said it was decided that international experts would be employed to prepare a 20-year prospective plan for the 12 major ports.

It was also decided that all new berths would preferably be constructed through public-private partnership.

A committee of secretaries is to be set up to suggest ways of improving rail and road connectivity to ports.

The committee is expected to submit its report by August.

Since the internal resources of the major ports are just about Rs 5,000 crore, the committee felt it would be necessary to go in for market borrowings, particularly for development of common facilities and capital dredging.

A plan will be prepared by a sub-committee to carry out dredging at the ports so that bigger vessels can come in. International tenders will be floated for dredging and the Government would fund 33 per cent of the costs, subject to a ceiling of Rs 250 crore on each port, the Deputy Chairman said.

Besides, the Government could also look at levying a cess of Rs 200 per container to help fund the capital investment.

However, Planning Commission officials said this was just a proposal and not yet finalised.

The commission said Rs 10,000 crore is needed to construct a mega port for JNPT, and a similar amount for making the Kochi, Chennai and Haldia ports meet international standards. In addition, Rs 30,000 crore is needed to augment eight major ports.

The committee suggested the launching of a National Maritime Development Programme.

It also suggested lower investment risk for such partnerships, making user charges affordable, lower Government funding and larger coverage to ensure that there is public-private partnership.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rs 50,000 cr needed for development of ports: Montek

7Hills bags FMT deal for cargo management system

UPS Jetair Express unveils tech-based tools for SMEs

Coal shortage hits Rlys' freight movement plans

AP Govt plans new design for delta roads

Thiruvananthapuram Airport Director transferred