Monday, 5 September 2011

SPVs to raise 35,000 crore for seven new large Indian ports

20 India's Ministry of Shipping (MoS) wants to set up Special Purpose Vehicles (SPVs) to allow 35,000 crores to be raised to execute the setting up of seven new large ports in the country. Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Maharashtra and Gujarat are expected to get one port project each, with each SPV raising 5000 crore. India presently has 12 major and 176 minor ports. The major ports of Mumbai, JNPT, Kolkata/Haldia, Chennai, Visakhapatanam, Kochi, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin and Kandla will be augmented with these new ports planned across the country.

The move comes as the Shipping Ministry plans to increase capacity of around 3,200 million tonnes by 2020, when forecasts expect total traffic to touch about 2,500 m.t. “These seven ports would be corporatised just like the Ennore Port. They can raise funds on their own initially.. The Ministry can pump in some money or help them with funds though,” a MoS official told reporters.

The process seems to be well underway. “We have requested maritime states to come forward and offer land to develop these big-size ports,” another ministry official said. The Andhra Pradesh government is thought to have shortlisted two locations already.

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