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| It has, however, said the government must chip in Rs 185 crore for basic infrastructural development in these ports before they can be privatised.
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| In its draft report, TCS said the nine minor ports, located in Gopalpur, Cuddalore, Vizhinjam, Azzhikal, Malpe, Karwar, Ratnagiri, Dharamtar and Magdalla, should operate as corporate entities.
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| Once they achieved 50 per cent capacity utilisation, another set of ports could be identified to meet future traffic demand.
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| The shipping ministry had appointed TCS last year to study how coastal shipping and minor ports could be developed.
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| The consultancy firm has recommended that the minor ports should also be regulated by an independent body, like the Tariff Authority for Major Ports.
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| The management, it has said, should be entrusted with the operational responsibility only. At present, the minor ports carry out all the functions, including the calculation of tariffs.
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| The TCS study states that the coastal shipping is grossly under-rated in India and transports only 7 per cent of the total domestic cargo, while in the European Union this share is as high as 43 per cent.
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| With the major ports focussing more on international trade, the coastal vessel operations would increasingly have to lean on minor ports for servicing their needs.
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| The report also states that coastal shipping scores over other means of transport in terms of fuel-efficiency and environmental friendliness.
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| Its potential should be exploited fully by utilising the minor ports for coastal operations and diversion of cargo from rail and road.
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| About four million tonnes of cargo volumes per year can be diverted to coastal shipping without incurring any additional costs, it has said.
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| If possible, an incentive plan like budgetary support, linked to the quantum of cargo routed by the railways to sea transport should be proposed.
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| The Centre could also consider diverting its own cargo and that of its agencies to coastal shipping, provided the overall transport costs do not increase.
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| The study has also recommended the setting up of a special cell under the Director General of Shipping to guide and monitor the progress of the coastal industry along with co-ordinating its activities with external agencies.
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During the last decade, India
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