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.
