TIDBITS

Port modernisation: Private partners may be roped in

By IndianMandarins- 21 Apr 2016
460

port-modernisation-private-partners-may-be-roped-inThe Shipping Ministry is considering the options to modernise state-run sea ports with private sector support as a first step, circumventing opposition to its plan for port "corporatisation". Several proposals are said to be under consideration. The government is targeting Rs 01 lakh crore investments to more than double the country's port handling capacity to 3,000 million tonnes by 2025. The public debate on the issue of port 'corporatisation' started when Finance Minister Arun Jaitley had proposed in Budget 2016 that ports would be encouraged to corporatise, and become companies under the Companies Act in order to attract investments for infrastructure development. However, following criticism from port labour unions, Jaitley tweaked the proposal in Budget 2017 and announced that the government had "started a series of measures to modernise ports and increase their efficiency". At the recent Maritime India Summit, Shipping Secretary Rajive Kumar had said that the Centre will table a new Bill to facilitate a model agreement by way of public-private partnership in the port sector. "In the next two months, hopefully by June 30, we will have a new model agreement. The Ministry of Shipping is coming up with a Bill that can handle long-term concessional arrangements between port and terminal operators," he added.

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