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Published: 1 March 2012      

Indian states line up US$2B for ports

Four Indian states - Andhra Pradesh, Kerala, Tamil Nadu and Gujarat - have approached the central government with proposals to invest at least Rs100B (US$2B) to develop ports, signalling an end to the standstill in the sector that has been dogged by environmental and security concerns.

While Andhra Pradesh has proposed four sites, Kerala, Tamil Nadu and Gujarat have suggested one site each.

"Expert teams have been sent to examine the sites and they will soon come up with their report. We have to consider the availability of land, draft, commercial viability and cargo supply from the hinterland," Shipping Secretary K Mohandas said.

Last August, the Shipping Ministry asked all coastal states to submit proposals for the 12th Five-Year Plan (2012-17). India has 12 major ports and around 200 minor ports.

The Ministry plans to augment annual handling capacity at all ports to 2.5 bt by 2016-17, which is almost three times the traffic handled in 2010-11. By 2020, the target is to increase capacity to 3 bt.

Traffic handled at major ports during 2010-11 was estimated at 570 mt and at non-major ports it was 315 mt.

To increase capacity, the government is eyeing investments of billions of dollars, with a major chunk expected to come from the private sector.

In recent years, several port projects, such as expansion work at Paradip, has stalled due to environmental concerns. Mohandas did not comment on the issue nor on security clearances, but Ministry sources said that with the process of obtaining security clearance expedited recently, they are hopeful of awarding more projects soon.


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  • Asia) India) Andhra Pradesh
  • Asia) India) Gujarat
  • Asia) India) Kerala
  • Asia) India) Paradip
  • Asia) India) Tamil Nadu
  • Ports and port authorities


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