Ministry Wants Port Charges Linked To $

The ministry of surface transport has recommended that the cargo charges levied by ports be linked to the US dollar. The recommendation made to the tariff regulatory authority has been necessitated as ports being developed with the private sector have a substantial component of foreign debt finance. At present, ports in the country are allowed to charge only vessel-related dues in dollars.

Speaking at the CIIs national conference on transport infrastructure here yesterday, ministry secretary Yogendra Narain said the government had also decided to invite private investment to upgrade the entire 35,000-kilometre length of the countrys national highways to four lanes.

For new road projects involving the private sector, the government would provide guarantees on minimum traffic flows with an escalation factor of about five per cent, he said.

Beginning with the Ennore port in Madras, the new ports that were being developed by the ministry would be corporatised, said Narain.

This was necessary to eventually pave the way for divestment of equity by the government. So far, about 40 foreign companies and 10 Indian companies have evinced interest in the development of new ports.

The ministry has decided to involve the private sector in inland waterway projects, especially waterways close to ports. The move would allow for faster evacuation of cargo and expedite the turnaround time of ships. The coal, petroleum and steel sectors have already been directed to use inland waterways wherever feasible, he said.

The government has taken up development of two expressways, for which the funding process was being tied up. These are the 400-km stretch between Mumbai and Baroda, for which Asian Development Bank (ADB) has been sought.

For the 280-km stretch between Kanpur and Agra, he said the ministry had approached the ministry of finance with regards to funding land acquisition. The government has also evolved a concession agreement for the Ahmedabad -Baroda highway project, in consultation with financial institutions.

On shipping, Narain said that the ministry had recommended the reintroduction of exemptions under section 33 A(C ) of the Income Tax Act, to make investments in shipping more attractive.