The Shipping Ministry is expected to bring the Cabinet note on two new major port projects within a week. Prime Minister Manmohan Singh recently took stock of the status of transport projects in the various sectors including shipping and ports.
Contracts for the two ports are targeted to be awarded by March 2013. The government has set a target of adding a capacity of 245 million metric tonne per annum by the end of this financial year. However, it will need to take up issues regarding security clearances and land transfer with cabinet secretary and concerned ministries.
The government has planned to develop Sagar Island in West Bengal as a major port. In Andhra Pradesh, the second major port is likely to come up in Ramaiahpatnam in Prakasam district.
A senior Shipping Ministry official said all new major ports would be built through a corporate structure and will be registered under the Companies Act 1956. Currently, there are 12 major ports in the country of which only Ennore is a corporate entity. The government had added the thirteenth major port at Port Blair, but it had to be de-notified after labour protests.
For 2012-13, Shipping Ministry aims to award 42 projects, of which 29 are through PPP route. The target given by the PM to Shipping Ministry for 2012-13 involves total investment of Rs 35,000 crore and a capacity addition of 244 million tonne.
The four PPP projects awarded till October 2012 include the 330 meter container handling berth at Jawaharlal Nehru Port, Cochin development of ship repair facility, berth number 14 at Kandla port trust and container terminal at Tuticorin. The latter has been awarded to ABG container handling and is already under litigation by M/S IPT who have contested the award of the project to ABG.
Last year, it could only award 3 out of the targeted 23 projects.
