The Hindu Business Line : Pvt sector likely to invest $7.7 b in ports

The private sector is likely to invest $7.67 billion in Indian ports in the next six years. This is part of the Government's National Maritime Development Programme (NMDP) that has identified 276 projects involving an investment of $12.40 billion covering a range of port-related projects such as construction and operation of berths and terminals.

Wherever necessary, public funds would be used for provision of common user infrastructure facilities, according to a report of the Ministry of Shipping.

Foreign direct investment up to 100 per cent under automatic route is permitted for construction and maintenance of ports and harbours. Fifteen private sector projects are operational in various major ports. Four more projects are under implementation. The preferred route for private sector participation is through open competitive bidding.

Exercise is also underway to identify more projects under the NMDP, the report says.

The report on Emerging Investment Opportunities in Port Development says that the projects would be taken up till 2011-12. These are projects such as construction of berths, deepening of channels, modernisation of cargo handling operations and connectivity to ports.

India's 12 major ports - six each on the West and East coast of the 7,515-km coastline - handled 456.20 million tonnes of cargo for fiscal ending March 2006 compared with 423.42 million tonnes during 2005-06.

The ports are likely to handle 700 million tonnes by 2011-12, and it is planned to augment the capacities in ports to around 1,000 million tonnes per annum in the next six years. This would involve capacity addition of 545 million tonnes per annum in ports during the six years commencing 2006-07, says the report.