Andhra Pradesh commands a lion's share of over 46% with three projects worth Rs 20,000 crore under construction in the ports sector under the public-private partnership (PPP) model as of April 2013, according to a study released by the Associated Chambers of Commerce and Industry of India (Assocham).
The study, titled ‘Port Development in India’, reveals that with three projects worth over Rs 1,425 crore, AP has a share of around six% in the PPP port projects under operation and that the state has no projects in the ports sector that are under bidding.
Releasing the report in Hyderabad on Friday, Assocham national secretary-general DS Rawat said while Guajrat accounted for a maximum share of over 50% in the total number of completed projects in the ports sector that had been put to service delivery under the PPP model as of April 2013, Kerala has the highest share of 40% in the PPP port projects under bidding.
According to the report, of the total 881 PPP projects worth Rs 5.4 lakh crore taken up under the PPP model across India, 62 projects in the port sector worth over Rs 82,000 crore are in different stage of implementation.
While 21 PPP projects in the port sector with a share of over 52% worth over Rs 43,000 are under construction, eight projects worth about Rs 14,000 crore with a share of 17% are under bidding, said Ravindra Sannareddy, chairman of Assocham southern regional council.
Of the total, 31 PPP port projects worth over Rs 24,700 crore are under operation in India as of April 2013, with Gujarat accounting for over 50% share with 12 completed projects worth Rs 12,400 crore.
According to the report, the XII Plan objective of attracting more than Rs 1 lakh crore private investments for developing non-major ports turns out to be an ambitious target unless and otherwise their XI Plan performances are evaluated in proper spirit. The report further said that states concerned must seriously consider incorporating the success strategies of others for better fulfilment of the Plan objectives.
The XII Plan envisages Rs 1.07 lakh crore new investments in the development of non-major ports during 2012-17. Close to Rs 1.05 lakh crore (or 97% of the estimated resources) is expected to be generated in the PPP model
The XI plan experiences of states reveal that barring Gujarat and Odisha, the seven other states -- Andhra Pradesh, Goa, Karnataka, Kerala, Maharashtra, Pondicherry and Tamil Nadu -- could create much lesser capacities than was envisaged in the Plan.
“This leaves us with two questions. One, what are the major factors holding back the investment in the development of minor ports? The second question is what separates Gujarat and Odisha from the rest of the seven maritime states?” Rawat said.
Stating that while Gujarat and Odisha have not only achieved but exceeded the minor ports' target set for the Eleventh Plan, he said south states Karnataka, Kerala and Tamil Nadu had been lagging behind in implementing the same.
“Andhra Pradesh has a political uncertainty, and it still continues to be one of the major factors that is keeping away the investors. Anywhere, if the political leadership is strong, investments will flow in,” he said, adding that while Gujarat had adopted the procedure of acquiring land first and then inviting bidders, the south states took the other way round.
