In an attempt to bring back investor interest in port projects, the shipping ministry has released a long-term development plan for the sector envisaging investment of more than R2.78 lakh crore by year 2020. The plan, which covers both central and state sector projects, would leave projects worth R1.09 lakh crore for bidding by private companies in major ports alone providing long-term investment opportunities in the sector.
The exercise has been forced upon the shipping ministry given a lukewarm response to projects put out for bidding so far this year. The ministry had planned awarding of 23 projects in the current financial year but managed to bid out only one till December-end due to a poor response from companies.
Chennai Port had put out a R3,700-crore mega container terminal twice but received only one bid?from Mundra Port and Special Economic Zone. It will call fresh bids by the end of this month now. Kandla Port also postponed its decision to award a project. Only one project for construction of fourth container terminal at Jawaharlal Nehru Port at R6,700-crore has been awarded this year.
Noticing the lacklustre interest of private sector, shipping secretary K Mohandas has written a note explaining various investment plans. He wrote that the ministry would facilitate investment to increase port capacity in India by two billion tonnes from one billion tonnes currently.
?The maritime agenda has estimated investment for capacity augmentation projects in the major ports at R1,09,449.41 crore, a major proportion of which is expected to be funded through private sector participation,? Mohandas said in the note.
Speaking to FE on his note, the secretary said, ?It is something that should be done every now and then. We have communicated our investment plans for next few years to the investors.? He said as the response has been low, the target for the current financial year could not be met. ?I hope that at least 18 of the total 23 projects that we planned earlier should be awarded,? Mohandas said.
During the day, shipping minister G K Vasan also met Japanese infrastructure minister Takeshi Maeda to discuss plans for port development. Indian official sources said the two discussed plans for Ennore and Chennai Port as several Japanese companies including Toyota, Nissan and Toshiba have made investment plans for the regions surrounding these ports.
