Govt plans two mega ports to handle commodities

Alternately, it plans to set-up specialised commodity-specific ports on the two coasts.

Most sources said the ministry had already received in-principle clearance from the Committee of Secretaries (CoS) for development of two mega/commodity-specific ports with private participation.

It is now awaiting the perspective plan, which will address the question of the enhanced of existing capacities and development of new ports both under public sector programme as well as through private participation to meet the growing demands of the trade sector.

The study, which is conducted in consultation with the Railways to ensure development of concomitant railway infrastructure, is expected to be completed in July-end.

The plan for new mega/commodity-specific ports is aimed at meeting the long-term capacity requirement target of nearly 850 million tonnes by 2012 at a modest growth rate 9 per cent per annum. The estimated requirement of funds is nearly $15-20 billion.

In the Ninth Plan (1997-2002) alone, the additional capacity requirement would be around 210 million tonnes with cargo traffic going to nearly 424 million tonnes by 2002. Of this, POL and coal would account for 187 and 94 million tonnes, respectively. The current capacity at the 11 major ports and 139 operable minor/intermediate ports is 215 million tonnes.

MoST sources said the port sector required nearly Rs 17,000 crore for the additional capacity. While the government plans to take up investments to the tune of Rs 10,000 crore, the remaining Rs 7,000 crore is anticipated through private sector participation. In the Ninth Plan period, MoST plans to invest nearly Rs 2500 crore on its ongoing schemes such as mechanised coal handling scheme at Paradip and container terminal at Madras.

In addition, investments of nearly Rs 7,500 crore have been planned in fresh projects at the 11 major ports. As for private participation, the ministry plans to invite bids for container freight station at Kandla, liquid cargo berth, six berth terminal and marine chemical terminal at Jawaharlal Nehru Port, outer harbour at Madras Port, four multi-purpose/general cargo berths and new outer harbour at Visakhapatnam Port and fertilisers capative handling system and dry dock ship repair facilities at Paradip.