Ports and Shipping

The lion coastline of India is dotted with 11 major ports which are managed by the Port Trust of India under Central Government jurisdiction and 139 minor operable ports under the jurisdiction of the respective State Governments. The major ports are located at Calcutta/Haldia, Mumbai, Jawaharlal Nehru Port at Nhava Sheva, Chennai, Cochin, Vishakhapatnam, Kandla, Mormugao, Paradip, New Mangalore, and Tuticorin. The major ports handle 90 per cent of the all- India port throughput, and thus bear the brunt of sea borne trade. Ports & Shipping There are eleven major ports and 148 minor ports in India. The responsibility for development and management of major ports rests with respective Port Trusts under the Central Government. The state government administers the minor ports. Major ports handled approximately 82 percent of the All-India ports was about 8 percent more than the traffic handled in 1998-99. The average turn around time and output per ship-berth-day at major ports have shown improvement during 1999-00 as compared to the previous year. The average turn around time has come down from five days to 4 days. Similarly the output per ship berth day has increased from 4915 tonnes in 1998 to 5337 tonnes in 1999-2000. The Ninth Plan estimate shows that 424 million tones (MT) Port capacity is required by the end of 9th Five Year Plan period (2002). Against this, the capacity of the existing ports is 215 MT. Some capacity yielding schemes carried over from the 8th Plan are under implementation, raising the capacity to 252 MT. This leaves a gap of 172 MT. It is now proposed to implement new Schemes in Major Ports for addition of 122 MT capacities requiring an estimated investment of Rs. 16,000 crores. Capacity addition of about 50 MT is proposed through development of minor ports and building captive port facilities by the user industries. The government has finalized a scheme for joint venture formations between major port and minor foreign ports. An amendment to the Major Port Trusts Act for this purpose has also been carried out recently. Sixteen private sector projects involving an additional capacity of 58 million tones and an investment of Rs. 4427 crore have been approved by the government. For private participation from foreign ports in developing ports and facilities, the government has liberalized the entry norms. The Foreign Port (s) may implement the Scheme by promoting Indian company in the form of Special Purpose Vehicle (SPV), without equity contribution from Major Port Trust; or A Joint Venture Company (JVC) may be incorporated under the Indian Companies Act with equity participation from Major Port Trust.