The proposed policy of Gujarat to develop new ports is likely to see the development of 30 new minor ports across its 1600 kms long coastline attracting around Rs 90,000 crore over the next five years, said the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Releasing the ASSOCHAM study on 'India's Ports, Shipping and Maritime Logistics'. Sunil Kakkad, chairman, ASSOCHAM Gujarat Council, said that the ever-increasing integration of the Indian economy with the rest of the world has been creating higher demand for port services. "The policy of Gujarat is to facilitate the landlocked states of the northern and central regions including Delhi, Punjab, Haryana, Himachal Pradesh, J&K, U.P., Uttarakhand, M.P., Chhattisgarh and Rajasthan," said Kakkad.The report has brought out that one of the major attractions of investing in minor ports is that they are excluded from the jurisdiction of Tariff Authority for Major Ports (TAMP).
The ASSOCHAM's report has highlighted the presence of a number of capacity constraints in the ports sector that include inadequate draft availability, low level of mechanization of operations, usage of outdated and inadequate cargo handling equipment and poor connectivity with hinterland are affecting the functioning of ports. "Involvement of multiplicity of agencies and complex administrative procedures too are mentioned to hamper India’s overseas trade. They call for revamping of port management system in the country," the report stated. "There exists a scope for the development of about 30 new ports along the Gujarat coast not only by the land locked states of North and Central India regions but also by the private enterprises from these regions. Going by the present industry norms, the development of a full fledged port initially requires an investment of about Rs 3000 crore. Therefore, the state would see an additional investment to the tune of Rs 90,000 crores in the coming five years," the report furtherstated. According to Kakkad, an average port provides regular jobs to about 500 employees and the indirect employment in the port related services and logistics would be in the range of three times to the direct employees. "Thus, in the ports and logistics sector itself 60,000 new jobs are estimated to be created from this endeavor," he added. Meanwhile, ASSOCHAM suggested that focused discussions need to take place between the government and industry at various levels on each of these key issues.