Govt to invest Rs 5,00,000 cr in Shipping sector by 2020

The government today unveiled a new policy for the Shipping sector that entails an investment of Rs 5 lakh crore by 2020 to take the ports capacity to 3,200 million tonnes and bring in major reforms in the space.

"The Maritime Agenda 2020 is a perspective plan that replaces the current National Maritime Development Project. We plan to take our port capacity to 3,200 million tonnes from 617 million tonnes on March 31, 2010," Shipping Minister G K Vasan said launching the policy.

Out of the Rs 5 lakh crore investment proposed in the sector, Rs 3 lakh crore would be in the port sector, while the remaining Rs 2 lakh crore will be infused in the Shipping sector.

Shipping Secretary K Mohandas said major chunk of the investment would come from the private sector and the government investment would be limited.

"Under the plan, we want to increase India's share in global shipbuilding to 5 per cent from the present 1 per cent," Vasan said adding that other initiatives include formulating a new Dredging Policy, promote coastal shipping and increasing the share of Indian ships in country's Exim trade.

Dredging is an excavation activity or operation usually carried out at least partly underwater with the purpose of gathering up bottom sediments and disposing of them at a different location.

Vasan said the present Rs 1.39 lakh crore NMDP plan which was to expire on March 31, 2012 will be replaced with the new agenda and include its remaining projects.

Of the 276 projects identified under the NMDP through public-private-partnership (PPP) mode, the government plans to award 21 projects worth Rs 13,952 crore projects in the current fiscal. Six such projects to augment the capacity of 13 major ports have already been awarded.

Elaborating other initiatives to be taken under the new agenda, Vasan said the government would set up to more major ports in the coutry -- one each on the East and West coast, in addition to the existing 13 Major ports.

Besides, four major ports - two on the east coast - Vizag and Chennai and two on the West coast -- Jawaharlal Nehru Port Trust and Cochin port would be converted into major hubs.

India at present has 13 major ports - Mumbai, Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatanam, Cochin, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin, Kandla and Port Blair under the control of Centre while has about 200 non major ports operated by states and private parties.

The government is also working on a new land policy for major ports and would soon appoint a port regulator to keep a vigil on port operations.

The Shipping Ministry plans to give more autonomy to the ports by vesting them with powers to fix their own tariff base on the prevailing market conditions, Vasan said.

At present the Tariff Authority for Major Ports (TAMP) decides the tariff for the major ports.

"The share of Indian seafarers is between 6-7 per cent in the global shipping industry. We want to increase it to at least 9 per cent by 2015," Vasan said.

Under the new agenda, the Ministry would also take up the task of creating a Maritime Finance Corporation which would finance the shipping projects in the country.

The ministry would make all attempts to control piracy through concerted international action.