Plan panel rejects proposal for more ports in Gujarat

The Planning Commission has turned down Gujarat Chief Minister Narendra Modi's proposal to develop more ports in the state.

The state government had proposed that the country's land-locked states can select a location for a port along the Gujarat coastline and invest in its development.

Modi, in his suggestion on the approach paper for the 11th Five Year Plan to the Planning Commission, said, "Landlocked states can develop a port in Gujarat for their own purpose. Investments in the port will be given special incentives."

Planning Commission Deputy Chairman Montek Singh Ahluwalia responded with: "Various ports already exist in Gujarat. What is the need to invest in developing new ports?"

Gujarat's 1,600-km long coastline has 41 ports "" 1 major, 11 intermediate and 29 minor. A host of major special economic zones too have already been set up along the coastline.

These include Kandla, catering to various sectors, Mundra in Kutch, Jamnagar for petrochemicals, Dahej in Bharuch for chemicals and petrochemicals and Positra for Sea King Infrastructure among others. Surat will be a multi purpose SEZ.

According to a Planning Commission estimate, by 2011 around Rs 50,000 crore would need to be invested in the country's 12 major ports alone in order to raise their capacities to handle large vessels with less turnaround times.

In his presentation before the Planning Commission, Modi had proposed the concept of integrated development of production-to-port value chain in infrastructure to beat competitors.

He had also asked the plan panel to extend tax relaxation and special incentives to private players investing in port-led SEZs.

Sources say that if Modi's proposal is cleared by Parliament under the 11th Five Year Plan, it will be a win-win situation for all parties involved.