Ports need Rs 2.76 lakh crore for capacity expansion:Shipping ministry

The Shipping Ministry has said ports in the country need an investment of Rs 2.76 lakh crore for capacity expansion and a major chunk of this amount is expected from private players.

Seeking private participation in improving ports infrastructure, Shipping Secretary K Mohandas in a message to investors said, " ... estimated investment for capacity augmentation projects in the major ports (is) Rs 1,09,449.41 crore, a major proportion of which is expected to be funded through private sector participation."

The states have identified projects for development of non-major ports at an estimated cost of Rs 1.67 lakh crore for creation of additional capacity of 1,294 MT, he said adding, "Private sector is envisaged to fund most of the projects through PPP or BOT or BOOT basis."

India has 12 major ports along its 7,517 kms of coastline, six each on the west and east coasts. Around 200 non-major ports transport about 90 per cent by volume and 70 per cent by value India's international trade.

While major ports are under the jurisdiction of the central government, non-major ports are under the control of respective states/ Union territories.

"In order to realise the growth potential and become globally competitive, utmost importance has been given for development of quality infrastructure . In line with the overall objective of development, the vision of the Ministry of Shipping is to ensure vibrant, efficient and safe ports and shipping services," Mohandas said.    

The preferred route for private sector participation is through open competitive bidding, he said, adding that in order to bring in uniformity and transparency in the public-private-partnership process, standardised model concession agreements have been put in place.

The Ministry plans to augment the capacities in all ports to 2.5 billion tonnes by 2016-17 and more than 3 billion tonnes by 2020. Traffic handled at major ports during 2010-11 was 570.03 million tonnes and at non-major ports it was 314.78 million tonnes.