Port Sector Regulator On The Cards
This was indicated by surface transport ministry secretary S Sundar while answering questions during the transport infrastructure session of the global summit on investment opportunities yesterday.
It was also disclosed during the question-answer session that the proposed mass rapid transport system (MRTS) for Delhi has been cleared and an announcement to this effect is in the offing. The project will cost Rs 4,200 crore and completed by 2006-2007. It will service about 3.2 million passengers every day.
Chairing the session, surface transport minister T G Venkataraman
said the government had set foreign direct investment (FDI) target of about $10 billion a year to develop the countrys infrastructure sector.
The government has made a commitment to increase the investment in this sector to 6 per cent of GDP. However, the funds needed to develop infrastructure cannot come entirely from the budget and the private sector must chip in.
All private investment in the infrastructure sector will be through the build, operate and transfer (BOT) route. The procedure will be fully transparent, Venkataraman said.
In the port sector, he said, 300-400 berths have to be constructed at the major ports. This alone will cost Rs 50,000 crore at current prices. The additional berths are needed to handle the growing cargo traffic.
The estimated growth rate of cargo traffic is 9 per cent and the 11 major ports will be required to handle 850 million tonnes of cargo by 2012.
Similarly, in view of the massive funds needed to develop airports, the Centre has allowed state governments to build new airports at greenfield sites in partnership with the private sector.
The surface transport secretary also sought to allay fears that budgetary support to the infrastructure sector will be cut. He also clarified that the cost of land acquisition will not be passed on to the private investor. The cost will be borne by the government, he said.
The minister also clarified that the government will not guarantee returns on investment in the infrastructure sector. This safeguard will be built into the tariff structure when the project is allotted. However, the government will compensate private investors if a project is dropped because of a change in government or policies, he said.