Centre targets Rs 50,000 crore PPP port projects over the next five years

Pipeline part of plan to push private investments as announced in Budget

The government is looking to develop public-private partnership projects (PPP) worth ₹50,000 crore for state-owned (major) ports in the next five years. This will increase port readiness and reduce congestion -- issues which have been keeping India's cost of logistics high.

 

“For port modernisation, in the next five years, there are plans of executing more than 40 projects of ₹25,000 crore. Additionally, in support of the National Hydrogen Mission, three hydrogen hubs are being planned in Kandla, Tuticorin, and Paradip. Construction is expected to commence in the next three years through PPP initiatives,” a top government official said.

 

The Centre will also look to bring to life its planned mega projects such as the Vadhavan Port.

 

The Centre claims that the port, once completed, will be among the world’s top 10 ports and look to service the needs of India’s growing economy as a gateway port. The existing Jawaharlal Nehru Port will soon reach a saturation point, limiting scope for expansion.

 

Similarly, The Great Nicobar Transhipment Terminal, which has not seen any major updates since the time it was announced amid environmental concerns, will also be worked on to make India a transhipment hub, the official said.

 

“So, the PPP projects worth ₹50,000 crore will also include land monetisation, where we are looking to commercially use port land with private parties,” a second official, aware of the matter, said.

 

This is part of a concerted push by the central government to generate more revenue from land resources. The government is also working on a captive water front and land use policy for major ports.

 

The government has been working on the second edition of the National Monetisation Pipeline (NMP) as the first phase ends this financial year.

 

Having temporarily hit pause on its consistent growth in capital expenditure allocations over the years, the government is looking to increase private investment in infrastructure.

 

Finance Minister Nirmala Sitharaman focussed on PPPs in the infrastructure sector in this year’s Budget.

 

“Each infrastructure-related ministry will come up with a 3-year pipeline of projects that can be implemented in PPP mode. States will also be encouraged to do so and can seek support from the India Infrastructure Project Development Fund (IIPDF) scheme to prepare PPP proposals,” Sitharaman had said in her Budget speech.

 

Queries sent to the Ministry of Ports, Shipping and Waterways remained unanswered till the time of going to press.

 

During the first phase of the monetisation programme (FY22 to FY26), the shipping ministry monetised assets worth about ₹15,000 crore, according to sources in the ministry. 

The Road Map

 

*  In the first phase of the monetisation programme (FY22-FY26), the shipping ministry monetised assets worth nearly Rs 15,000 crore

 

*  This is part of a concerted push by the centre to generate more revenue from land resources

 

*  Government claims that the port, once completed, will be among the world’s top 10 ports

 

*  The Centre is also working on a captive water front and land use policy for major ports