New Delhi, June 22: Officials of the state maritime boards and major port trusts are in favour of restricting the number of minor ports in the country. The suggestion came up during a meeting of port officials in New Delhi on Tuesday.The officials were reacting to Port Vision 2020 report which had recommended development of a number of minor ports in the country. RITES Ltd made a presentation on the study to the officials who met to prepare a brief for the second Maritime States Development Council's meeting on Wednesday.
RITES representative clarified that the report had only suggested a limited number. According to sources, the report came in for some sharp criticism during the meeting with some participants even terming the five-volume study as "flimsy".
The RITES' suggestion of creating a port development finance corporation was also rejected on the grounds that a number of financial institutions for infrastructure projects already existed. They cited the example of Shipping Credit and InvestmentCorporation of India (SCICI) which could not be successful and was finally merged with ICICI.
RITES had suggested that money accruing from cess on cargo handling and divestment of government stake in ports could be utilised by the proposed corporation.
Chairmen of major port trusts were critical of RITES for not considering their master plans to which the RITES representative agreed but said that they did held discussions with various port officials.
Participants at the meeting also came down heavily on the study for not properly highlighting the issue of port linkages like railways and roads.The chief hydrographer felt that the study also failed to adequately address the security needs of the ports.
Tuesday's meeting was attended by chairmen of major port trusts, chief executives of state maritime boards, chief surveryor general and officials of director general of shipping, Dredging Corporation of India and directorate general of lighthouses and lightships. According to a participant of the meeting,chairman of Tariff Authority for Major Ports was critical of amendments to the Major Port Trusts Act though the issue was not on the agenda. He stressed the need for continuing with the regulatory authority for ports.
JVs between minor, major ports on the anvil
Officials representing major and minor ports have favoured formation of joint venture partnerships among themselves and with private companies. Some proposals are likely to take shape though a port official added that minor ports were still apprehensive about such partnerships.
According to the Central government guidelines, three types of partnerships are allowed in the port sector. They are between major and minor ports, major and foreign ports, and major port and a domestic or foreign company. But in any such partnership, major ports are to required to have a minimum 26 per cent stake.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.