Shipping Ministry likely to seek funds to support 2 major ports.

The Shipping Ministry may seek funding support for two major ports to attract more developers and is likely to approach the Cabinet on the issue.

The government has finalised Sagar (West Bengal) and Dugarajapatnam (Andhra Pradesh) as two sites for setting up of the ports.

'At the Sagar port there is also a proposal to build a rail bridge which means that the rate of return for that port will about 8%. So without VGF (viability gap funding), participation of bidders is an issue,' a Shipping Ministry official told PTI.

'Also, at the Dugarajapatnam Port the rate of return is 18% without the cost of land and therefore we are exploring the option of VGF,' the official said, adding that we will go to the Cabinet soon with the proposal.

BS