India has a more than 7,500 km-long coastline, which is being further developed to support trade. The Government of India (GoI) is focussing on port infrastructure development in the country and is promoting private participation and FDI. Most of the cargo ships that traverse between East Asia and America, Europe or Africa, pass through Indian territorial waters. As such, India has the potential to develop itself as a transshipment hub.
There are 12 major ports in India and around 200 non-major ports, of which one-third are operational. In 2008–09, the total cargo handling capacity of major ports was 574.5 million tonnes per annum (MTPA). The capacity of major ports is further estimated to increase to 1,000 MTPA by 2011–12. Non-major ports are expected to more than double their capacity by the end of the Eleventh Five Year Plan (2007–2012), to support major ports in handling growing cargo traffic.
Cargo traffic at Indian ports has increased at a compound annual growth rate (CAGR) of 9.1 per cent between 2004 and 2009 and has grown from 521.6 MTPA to 738.2 MTPA during the period. Indian ports handle more than 90 per cent of the country’s total trade in terms of volume and around 70 per cent in terms of value.
Coal-based power plants are being set up near ports due to the dependence of these plants on imported coal. These plants will provide a consistent stream of revenue for the ports, catering to the development and maintenance of port infrastructure.Sectoral Presentation (April 2010)
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