Shipping ministry is set to complete yet another year with dismal performance on enhancing countries port handling capacity. The ministry has so far awarded only six projects for development of major ports till December 2010, which is much below the target given to it by the by the Planning Commission for the current financial year. The Plan Panel headed by PM Manmohan Singh had asked shipping ministry to award at least 21 projects by end of the fiscal to minimise the gap in port capacity that is already resulting in congestion and long waiting time for international cargo.
Due to continued failure of shipping ministry in awarding requisite projects, the Commission has already reduced the 11th Plan target of raising capacity of 12 major ports by 40%. The actual achievement is expected to be even below this reduced target. The government had envisioned to take major port capacity to more than 1,000 million tonne through projects awarded during 11th plan. The planned investments in the port sector during the 11th Plan were cut 53% to Rs 40,647 crore. Last year, the ministry awarded just six out of 17 scheduled projects. Nine projects had to be carried forward from 2008-09 to 2009-10.
Senior officials in the ministry blame lengthy procedures and court cases filed by aggrieved firms for the delay. ?Generally, companies that are not allowed to bid for new projects file court suits against the government, holding up the entire project. Although we have clarified the government policy on the matter, the problems continue,? one of the top officials told FE.
In January 2010, the ministry issued a policy restricting any private operator of any cargo terminal from bidding for another berth for the same cargo at the same port. The norm was intended to prevent monopolistic position of any private developer. However, the ministry is now trying its best to make the amends. ?We are strictly monitoring all the projects so that we can achieve the target to the maximum extent possible,? another official said.
The ministry has also framed a prospective plan for port development till year 2020 to take the country?s port capacity to 3,280 million tonne to handle traffic of 2,495 million tonne. The investments to carry out this task has been pegged at Rs 2.87 lakh crore.