Govt. fast tracks project delivery in port sector

In an attempt to provide quicker and instant financial assistant to the port building agencies, the Ministry of Shipping has formulated a revised Central Sector Scheme for major, non-major ports and State Governments for creation of required infrastructure on fast tracked basis. The scheme has been aimed at quicker movement of cargo and passengers by sea or National Waterways in line with the Ministry's port-led development programme – Sagarmala. The move will enable agencies to build better infrastructure and promoting costal shipping for saving logistic costs, said official sources, claiming that under the scheme, projects for construction and upgradation of exclusive coastal berths for coastal cargo and berths/jetties for passenger ferries; mechanization of coastal berths, capital dredging for operating non-major ports, construction of breakwaters for existing and greenfield non-major ports. Apart from this, it also included the construction of berths/ jetties in National Waterways and islands by State Governments/UT, and construction of platforms/ jetties for hovercrafts/seaplanes will be considered for assistance. Financial assistance under the revised scheme would be given upto 50% of the total cost of the project.

The sources added that the balance cost will have to be borne by the respective ports or concerned State Government from their internal resources: a) A maximum of Rs. 25-cr in case of construction/ up-gradation of exclusive coastal berths for coastal cargo and passengers in ports' water b) A maximum of Rs. 10-cr for construction of platforms / jetties, National Waterways, and islands c) A maximum of Rs. 15-cr in case of Mechanisation of coastal berth d) A maximum of Rs. 50-cr in case of capital dredging for operating non-major ports e) A maximum of Rs. 50-cr in case of construction of breakwater for existing and greenfield non-major ports. The country has high potential to use coastal shipping for its internal cargo movement given its 7500 km long coastline. The National Perspective Plan of Sagarmala envisages the potential to save around Rs. 21000-27000-cr through coastal shipping of 230-280 MMTPA of key commodities like coal, cement, fertilizers, iron & steel, food grains by 2025.