Shipping policy awaits Cabinet nod: Baalu

The Union Minister for Shipping, Road Transport and Highways, Mr T.R. Baalu, today said that the new shipping policy will be announced shortly and is awaiting Cabinet nod.

This policy referred to as the National Maritime Development Policy will pave way for major investments in the infrastructure in the shipping and ports segment in the country, where the Government expects to pump in about Rs 1,00,000 crore for various projects in the pipeline.

Exim Trade

The Union Minister told Business Line that the policy seeks to encourage public private participatory investments required to provide impetus to trade.

Shipping accounts for about 95 per cent of the total exim trade that is handled by major and minor ports in the country. In effect, this accounts for about 70 per cent of value.

“We at the Centre believe that this will go up significantly with the economy inching towards the 10 per cent GDP growth mark. As a part of this drive, we have identified 276 project ideas, and 111 projects in the shipping segment,” he explained.

“Of the Rs 1,00,000 crore investment planned, Rs 55,000 crore would be deployed into expansion, modernization and creation of new ports useful for shipping.

The remaining Rs 45,000 crore would be deployed into related infrastructure that supports shipping,” he said.

The Government’s effort was to bring about a multi-pronged change covering expansion and modernization of ports and its infrastructure, acquisition of higher capacity cranes and container handling equipment, and dredging related infrastructure.

In the first quarter of this year, cargo handling business witnessed a growth of about 10.44 per cent over corresponding quarter last year.

The automotive exports were on the surge and Chennai port alone handled big numbers last year.

GDP Growth

“We have identified 9 projects around the Vizag port, including some related to dredging.

The ports segment is also witnessing investments with several private players keen on participating in port infrastructure.

Krishnapatnam and Gangavaram were examples of such interest.

The Centre was keen to achieve a GDP growth of about 10 per cent and believed that this would be best possible by bringing in convergence of the monetary, fiscal and exim policies,” Mr Baalu said.