Govt to award port projects worth Rs 16K cr in FY12

The government today said it would award 23 projects, entailing investment Rs 16,700 crore, under the public-private-partnership (PPP) mode this fiscal to augment capacity of major ports.

"We are set to award Rs 16,700 crore projects this fiscal to add 232 million tonne capacity to our major ports. These 23 projects will be awarded on PPP mode," Shipping Secretary K Mohandas told reporters on the sidelines of Ficci infrastructure summit.

At present, total capacity of the 13 major ports stands at about 640 million tonne. The combined capacity of these major ports and about 200 minor ports in the country reached 1,095 million tonne on March 31, this year.

"In ports sector, we have been looking at capacity creation as there is huge infrastructure deficit," Mohandas said, adding that the ports handled 895 million tonne cargo last year, utilising over 85% of the capacity.

"We have to increase ports' capacity so that there is 30% gap between cargo traffic handling and ports capacity," he added.

In the last three years, major ports have awarded 24 projects on PPP mode against a target of 47.

Asked about coastal policy, the Secretary said the new policy will be ready in the next two months and it will look into all aspects of coast shipping including infrastructure requirement.

On delays in corporatisation of Jawaharlal Nehru Port Trust, Mohandas said talks were on with the trade unions to allay their fears that service benefits will reduce post corporate structure of the port.

The trade unions are opposed to the idea of its corporatisation.

At present, India has 13 major ports - Mumbai, JNPT, Kolkata (with Haldia), Chennai, Visakhapatanam, Cochin, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin, Kandla and Port Blair-- under the government control.