 "Port sector gets 14 PPP projects")
Overall, 26 port projects have been awarded, bringing in a capacity augmentation of 114 mtpa. In addition, the government has awarded a Rs 785-crore project for development of a ship repair facility at Cochin port.
The government could award only three projects in FY12, which included the Rs 8,000-crore fourth container terminal at Jawaharlal Nehru Port. The project will be up for a re-bid in the next financial year. For FY14, the shipping ministry plans to add a capacity of 250 million tonne through public and private investment.
Most of the projects awarded this year have spilled over from last year. Even so, the ministry is patting itself on the back for the number of projects awarded this year, the meagre capacity enhancement notwithstanding. “We have constantly been monitoring the award of projects and expediting the clearances for projects. This year, the Prime Minister has kept a close watch on the status of infrastructure projects of the country,” said a senior shipping ministry official.
The target given by Finance Minister P Chidambaram to the shipping ministry for FY13 involved a total investment of Rs 35,000 crore and a capacity addition of 244 million tonnes. The shipping ministry has managed to achieve 18 per cent of the targeted investment. While the industry had called the target given by the PM unrealistic, the government felt that by setting a high target it could achieve much more than it could by eyeing a realistic number.
However, as many as 20 of the 27 projects awarded this financial year have an annual capacity of less than five million tonnes. The biggest project awarded this year includes two single-point mooring system for Indian Oil’s refinery at the Paradip port. The total cost of the project is estimated at around Rs 1,500 crore with a capacity of 22 mtpa.