13 shipping projects awarded in FY10 after none in previous fiscal

In what may be called a complete turnaround on its performance in awarding port projects under the public private participation...

In what may be called a complete turnaround on its performance in awarding port projects under the public private participation (PPP) mode,the ministry of shipping has awarded 13 projects in fiscal 2009-10 compared to zero last year. Having made hardly any progress under erstwhile shipping minister T R Baalu in UPA I,the ministry has managed to push projects after making some key changes to the model concession agreement as well as speeding up the award process as a whole.

The ministry had a target of awarding nine projects in 2008-2009 and planned to award about 21 this year. Having awarded no projects in 2008-09,the ministry has managed to push the award of seven of the nine projects this year entailing an investment of Rs 1,500 crore in various major ports. Another six projects worth Rs 1,150 crore have been awarded in the second half of 2009-2010 out of the target of 21 for the year.

Some of the major projects awarded this year include mechanisation of five different berths located in Kolkata,Paradip and Vizag. In fact the government awarded six projects at Paradip including three berth mechanisation projects and one deep draft berth for iron ore and coal. Other projects include setting up a mechanised berth at New Mangalore Port ,a bulk cargo berth at Mormugao Port and a liquid cargo berth at Vizag among others.

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The ministry recently did away with the condition of preventing players from bidding for two adjacent berths at a single port in order to prevent monopoly. In addition,toeing the line taken by the roads ministry,this ministry also did away with the condition of allowing only top six technically qualified bidders to put in financial bids in February 2010. With port traffic also picking up and the recession phase waning,we have received a warm response to project proposals. On an average the ministry got 7-8 serious bidders for all the projects advertised for award under PPP, a senior government official told The Indian Express.

However,the ministry will have to take on the award of 15 projects worth Rs 10,000 crore from this years kitty to the next fiscal. These could not be done as the first few months of the fiscal went towards removing regulatory and process related hurdles,the official said.