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Port Linkages to Get 13,700k cr via 35 New Projects

The shipping ministry has drawn up ambitious target to award over 35 ventures worth over Rs.13,700 crore in Port linkages projects.

Encouraged by last financial year’s success in awarding projects shipping ministry is planning to add about 259 million tonnes cargo capacity this financial year.

This financial year shipping ministry is shifting its focus from capacity augmentation projects like in the past to port infrastructure and connectivity projects.

The lack of proper connectivity and port infrastructure were highlighted by private developers which were impacting both operations and profitability.

 23 projects worth Rs. 5,202 crore will be taken up on a priority basis while the rest have been marked as standby projects.

As per Developers, without proper connectivity, projects end up as dead investment, and also the lack of dredging (clean out the bed of a harbour or river) to increase depths means only smaller vessels can be handled – both of which impact operations and profitability.

This year, the shipping ministry is planning to award a total of 17 Public-Private Partnership (PPP) projects worth Rs. 10,277 crore, which includes the

  • Rs. 1,758-crore Diamond Harbour container terminal at Kolkata Port.
  • Rs. 681-crore deep draught iron ore berth at Paradip Port,Jagatsinghpur district of Odisha.
  • Rs. 2,496-crore additional liquid terminal at JNPT, Mumbai, Maharashtra.

Public-Private Partnership

It is a business relationship between a private-sector company and a government agency for the purpose of completing a project that will serve the public. Public-private partnerships often use private-sector investments to finance a public project when sufficient public funding is not available.

Public-private partnerships can be used to finance, build and operate projects such as public transportation networks, parks and convention centers.

Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place.

In all, the government has awarded about 100 PPP projects for development of the major ports, as on May 2013. 

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