Indian shipping ministry to launch new projects in 2014.

ET reported that the Indian shipping ministry has drawn up another ambitious target to award over 35 ventures worth over INR 13,700 crore and plans to add about 259 million tonnes capacity this year.

However, this time, the shipping ministry will shift its focus from capacity augmentation projects like in the past to port infrastructure and connectivity projects, the lack of which has often been highlighted by private developers.

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

A senior shipping ministry official, who preferred anonymity, said that 'We've awarded enough capacity enhancement projects and should now focus on implementing them. This year, we will pay attention to rail road connectivity and port infrastructure projects.'

Mr Pradip K Agrawal CEO of APM Terminals Mumbai said that 'Connectivity and dredging issues have been lingering for a long time. Infrastructure for the port needs to be there for ports' capacity projects to be effective.'

Developers said that without proper connectivity, projects end up as dead investment, and lack of dredging to increase depths means only smaller vessels can be handled - both of which impact operations and profitability. This year, the ministry is planning to award a total of 17 PPP projects worth INR 10,277 crore, which includes the INR 1,758-crore Diamond Harbour container terminal at Kolkata Port, INR 681 crore deep draught iron ore berth at Paradip Port and the INR 2,496-crore additional liquid terminal at JNPT


STEELGURU