Shipping ministry to sign MoUs worth Rs 73,000 cr for 109 projects

The Ministry of Shipping is likely to ink MoUs worth Rs 73,000 crore ($12 billion) with private players in various port-related projects during the first-ever Maritime India Summit (MIS) to be held in Mumbai from April 14-16, 2016. South Korea is the partner country for the summit.

For the summit, the ministry has identified 109 projects for MoUs in various sectors including ship-building, ship repair, ship recycling, port modernisation, and new port development, hinterland connectivity projects, and multi model logistics hubs. In addition to this more than 150 projects will be showcased for investment under ‘Sagarmala’.

Addressing the media persons, Ministry of Road, Transport, Highways and Shipping, Nitin Gadkari said, “ We would sign MoU worth Rs 72,864 crore with private players for executing 109 projects during the upcoming summit.”

The projects for which MoUs will be signed includes port led-development where the ministry has proposed investment worth Rs 22,218 crore, port-led industrialisation (Rs 25,242 crore), new port development (Rs 10,308 crore), Ship building (Rs 5,418 crore), port modernisation (Rs 5,148 crore), port connerctivity (Rs 1,500 crore) etc.

Gadkari also added that in addition to ongoing projects, the government is likely to award a tender worth Rs 6,700 crore for various projects to modernise the existing ports by March 31.

The summit will be inaugurated by Prime Minister Narendra Modi on April 14. This is a maiden attempt by the central government to attract investment in the Indian Shipping and Maritime industry from both domestic as well as international players.

 
The ministry will also showcase flagship port-led development under “Sagarmala”. The major developmental opportunities identified under the programme include port modernisation (Rs 90,000 crore), port connectivity (Rs 1,20,000 crore), port-led industrialisation (Rs 90,000 crore), and coastal community development.

According to a study, the total cargo at ports would touch 2.5 billion MMTPA BY 2025, against 1.05 billion in 2015.

The event will also showcase opportunities in ship building, ship repair and ship recycling. The ministry is seeking collaboration with foreign shipyards for modernisation and technological upgradation of Indian shipyards. The event will also provide a platform for leading global maritime organisations to explore business opportunities and create awareness amongst stakeholders about the emerging trends and opportunities in the maritime sector. Projects related to hinterland connectivity and multi-model logistics will be showcased to attract investment in this sector.