Infrastructure - Ports

India has 11 major ports in the country apart from 139 minor working ports along the coastline of 5,550 km. India's 11 major ports, which account for over 90 percent of the country's port traffic, handled a record 251.44 million tons of cargo during IFY 1997-98, an increase of 10 percent over IFY 1996-97. Port traffic has been growing by 9-10 percent annually, and is expected to reach 424 million tons by 2002. To decongest the ports a plan, with an outlay of Rs. 17,000 crores, has been drawn in the Ninth Plan. It also aims to increase the major ports capacity to 424 million tonnes per annum from the existing 215.3 million tonnes.

To meet the huge gap between demand and availability of port capacity, private and foreign investment in ports is being encouraged by the government, which issued guidelines liberalizing the sector in October 1996. As part of its port revival plan, the government has decided to lease out port assets to private companies at attractive terms to generate more revenue. Ministry of Surface Transport is also planning to incorporate the eleven major ports, and has announced a port investment plan of dols 7.6 billion for 21 projects in those major ports. Port capacity is to be increased from the current level of 215 million tons to 850 million tons by 2012.

The guidelines for foreign investment have been liberalized to allow:

• Automatic approval for foreign equity participation up to 74% in construction of ports and harbors.
• Automatic approval for foreign equity participation up to 51% for support services such as operation and maintenance of piers, loading and discharging of vessels.