Achieved target of awarding 30 new port projects in FY14: Vasan

Thirty new project will entail investment of over Rs 21,000 crore

Union Shipping Minister G K Vasan today said his ministry has achieved the 2013-14 (Apr-Mar) target of awarding 30 port projects, which calls an investment of over Rs 21,000 crore and means an addition of 217 million tonne in the annual additional capacity.

Vasan was speaking on the sidelines of an event held here to formally award two container project contracts at the Jawahar Lal Nehru Port Trust.

"This is the best achievement in our history and we have already met the target for 2013-14," Vasan said. "During the past four years, the ministry has awarded 88 new projects requiring an investment of Rs 42,953 crore and adding 558 million tonne in additional capacity."

The most important decision have been deregulating tariffs for new projects by disbanding the Tarriff Authority of Major Ports (Tamp), setting a strict timeline for getting security and green clearances for projects and a new land policy, Vasan said.

The minister was here to lay the foundation stone of 330- meter standalone container handling project of JNPT awarded to Nhava Sheva (India) Gateway Terminal.

Alongside, the minister awarded two other projects, one was the development of mega project of fourth container terminal to PSA Bharat Investments and a smaller one worth Rs 29 crore for development of software for automation of the facility to CMC, subsidiary of Tata Consultancy Services.

PSA Bharat Investments is a company formed by Singapore-based PSA International which will develop the fourth terminal on Design, Build, Finance, Operate and Transfer (DBFOT) basis.

As per the public-private partnership policy of Government of India, the Jawaharlal Nehru Port Trust floated a global tender and DP World was the successful bidder for the project, with their offer of 28.9 percent revenue share to the port. DP World has formed a special purpose vehicle Nhava Sheva (India) Gateway Terminal to implement this project.

JNPT, India's largest container handling port signed the agreement with Nhava Sheva(India) Gateway Terminal for development of the standalone container handling facility at an estimated cost of Rs 600 crore, with an estimated capacity addition of 0.8 million TEUs per annum.

The project for development of fourth container terminal at the port with a quay length of 2,000 metres and a capacity of 4.8 million TEUs per annum at an estimated project cost of Rs 7,915 crore was bid out by the Jawaharlal Nehru Port Trust through a global tender and PSA was successful bidder for the project with the offer of 35.79 percent revenue shared to the port.

JNPT is the biggest container handling port in India, handling around 56 percent of the country's containerized cargo.