Rs 5-lakh-crore fillip for shipping announced

The government today announced an investment of Rs 5 lakh crore in maritime development by 2020. This would involve increasing the port handling capacity of the country to 3 billion tonnes from the existing 617 million tonnes along with various policy reforms in the shipping and ports sector, Shipping Minister G K Vasan said.

The projections are part of the Maritime Agenda 2020 unveiled by the government today. “We do not need high amount of government support but there is a need for private investment,” said Vasan.

The agenda will replace the National Maritime Development Programme, which was to end in 2012.

The government also plans to set up a regulator to keep a vigil on port operations including setting, monitoring and regulating the service levels, as well as technical and performance standards. Currently, the Tariff Authority of Major Ports fixes the price ceiling. “All the ports should be left free to fix their tariff, depending upon inter-play of market forces. The regulator can be entrusted with the responsibility of dispute resolution as appropriate,” Vasan added.

As part of the agenda, the shipping ministry will be drafting a coastal shipping policy and a transshipment policy to relax cabotage laws for promoting transshipment ports. Currently, work on the International Container Transshipment Terminal in Vallarpadam, Kochi is going on. “The port will be inaugurated by the Prime Minister in the second week of February 2011,” Vasan said.

The government will create four hub ports — two each on the east and west coasts.