Govt to invest Rs 50,000 cr for port development

The Committee on Infrastructure of Ports, headed by prime minister Manmohan Singh, has estimated that an investment of Rs 50,000 crore would be required by 2012 to develop 12 major ports, a Planning Commission official said. The committee is also looking to levy a cess on cargo for funding infrastructure for ports.

"There was a discussion that to meet the cost of common infrastructure at the ports, some cess should be levied on cargo," Gajendra Haldea, advisor to deputy chairman of the Planning Commission, told reporters at a press conference. "It can be Rs 200 per cargo, which is a small amount."

He, however, clarified that no final decision had been taken on levy of cess.

The Committee on Infrastructure of Ports is also planning to constitute an inter-ministerial group to draw a roadmap for raising resources for the development of ports.

"Internal resources of Port Trust of India is estimated to be about 50 billion rupees and public resources in terms of budgetary support will have constraints," he said.

To bridge the gap, public private partnership at all major ports on the lines of Ennore Port, Jawaharlal Nehru Port Trust, and Chennai Port Trust are required, he said.

Haldea said, according to the committee's view, all new berths at the ports should be build by public-private partnership so that Port Trust resources are deployed for common infrastructure facility.

He said ports needed deeper draft for large vessels, which is a capital intensive process and done by global companies.

"For enabling our shipping companies to acquire large vessels like other global players, we need to float international contract for capital dredging (to create deeper draft)," he said.

"A plan to fund this scheme would be ready by October 2005. We expect some expenditure for this to come from the government and Port Trust while the majority will be met through loans from commercial banks and other forms of borrowings," he said.

The committee also decided to take the services of international experts to prepare a 20-year plan for each port. "We will appoint an expert by July 2005, who would submit the report by February 2006," he said.