81 projects worth Rs.42,400cr to be awarded by 2025 under PPP-mode
The Asian Development Bank (ADB) has drawn a perspective plan up to 2025 on development of coastal shipping in India along with the Government’s initiatives to promote the sector.
The Ministry of Ports, Shipping and Waterways gave this update in a review of its projects on 27 Dec 2022.
To encourage a modal shift, coastal vessels are being provided a discount of 40% in port charges over foreign going vessels, it added.
Other measures such as reduction of GST on bunker fuel from 18% to 5%, Cabotage relaxation for cargo vessels, integration of inland and coastal cargo, Subsidy support to Indian shipping companies, Green channel clearance for coastal cargoes and priority berthing for coastal vessels at major ports are some of the efforts to promote coastal shipping.
The Government is providing assistance for construction or upgradation of exclusive coastal berths, platforms or jetties, mechanization of coastal berth, and capital dredging.
Six dedicated Coastal Berths are under development at various ports while five have already been constructed at other ports.
With the advent of PM GatiShakti and National Logistic Portal, Coastal shipping will get further required boost and will help in realizing the goal of bringing down the overall logistic cost.
The coastal shipping traffic has grown from 74.9 MMTA in 2014 to 133 MMTPA in 2022, said the Ministry.
Among other developments, the Ministry is providing assistance to Syama Prasad Mookerjee Port for Development of River Cruise Terminal And River Tourism Facility Along With Riverfront Beautification Work.
Also, a Letter of Intent (LOI) has been issued to successful bidder to carry out prefeasibility studies at the identified locations for development of water aerodromes and floating jetties.
The Ministry has given approval to Syama Prasad Mookerjee port Authority for undertaking prefeasibility studies at 8 locations identified in the state of Jharkhand and West Bengal.
The Ministry has cleared 81 projects of more than Rs.42,400 crore which are going to be awarded on PPP-mode till FY2025 under the National Monetization Pipeline (NMP).
The Government has approved 13 projects of value Rs.6,944 crore for financial year FY 2021-22 and seven projects of Rs.5,278 crore have already been awarded while others are in various stages of bidding.
The Ministry said 24 projects of approx. Rs.12,550 crore in contract value are scheduled for award in FY 2022-23. It added that 7 of these projects have been approved.
It said one Rs.343 crore project has been awarded and others are under tendering and development phase.
Balance 44 projects, worth more than Rs.22,790 crore, have been identified for PPP mode from FY-2024-25.
With the cargo volume expected to increase between 1.7 to 2 times (of 2020) by 2030, the percentage of cargo handled at Major Ports by PPP or other operators, is expected to reach 85% by year 2030.
The PPP mode of investment in Indian ports has made a remarkable progress in the last 25 years, beginning from the Jawaharlal Nehru Port (JNP), resulting in the capacity addition and productivity improvement, said the Ministry.
Now, JNP has become the first major port of the country to become 100% Landlord port having all berths being operated on PPP model.
JNPA has placed Letter of Award (LOA) to J M Baxi Ports and Logistics Ltd and consortium member CMA Terminals on 28 June 2022 and the concession agreement signed on 29 July 2022.
The Jawaharlal Nehru Port Container Terminal (JNPCT) has 2 berths with total length of 680m and 15m draft which will be handed over under this PPP contract along with backup area of 54.74 hectares for 30 years. The concessioner has to upgrade, operate, maintain and transfer this terminal on PPP basis.
Further, the Ministry has unveiled Rs.231.21 crore projects on 30 Sept 2022 at Tuticorin, Tamil Nadu.
Foundation stone was laid for the Rs.100 crore Tuticorin SPEEDZ (Coastal Employment Unit) land for development of Port-based Industries, spanning 1,300 acres, and Inner Harbour development works (Widening the Port Entrance and dredging the widened portion).
Upgraded Coal Yard Road and Drainage System, costing Rs.16 crore, Fixed Fire Fighting System at Oil Jetty costing Rs.18.79 crore and Strengthened 22 KV HT Electrical Network costing Rs.1.15 crore were inaugurated during 2022, said the Ministry. fiinews.com
