According to the Ministry of Shipping, around 95 per cent of India's trading by volume and 70 per cent by value is done through maritime transport.
India has 12 major and 205 notified minor and intermediate ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. The Indian ports and shipping industry play a vital role in sustaining growth in the country’s trade and commerce. India is the sixteenth largest maritime country in the world with a coastline of about 7,517 kms. The Indian Government plays an important role in supporting the ports sector. It has allowed Foreign Direct Investment (FDI) of up to 100 per cent under the automatic route for port and harbour construction and maintenance projects. It has also facilitated a 10-year tax holiday to enterprises that develop, maintain and operate ports, inland waterways and inland ports.
In FY20, major ports in India handled 704.82 million tonnes (MT) of cargo traffic, implying a CAGR of 2.74 per cent during FY16-FY20. Cargo traffic at non-major ports reached 447.21 MT in FY20 (till December 2019).
The major ports had a capacity of 1,514.09 MT per annum (MTPA) in FY19P. The Maritime Agenda 2010-20 has a 2020 target of 3,130 MT of port capacity.
The Government has taken several measures to improve operational efficiency through mechanisation, deepening the draft and speedy evacuations.
Some of the major initiatives taken by the government to promote the ports sector in India are as follows:
Following are the achievements of the government in the past four years:
Increasing investment and cargo traffic point towards a healthy outlook for the Indian ports sector. Providers of services such as operation and maintenance (O&M), pilotage and harbouring and marine assets such as barges and dredgers are benefiting from these investments.
The capacity addition at ports is expected to grow at a CAGR of 5-6 per cent till 2022, thereby adding 275-325 MT of capacity.
Under the Sagarmala Programme, Government has envisioned a total of 189 projects for modernisation of ports involving an investment of Rs 1.42 trillion (US$ 22 billion) by the year 2035.
Ministry of Shipping has set a target capacity of over 3,130 MMT by 2020, which would be driven by participation from the private sector. Non-major ports are expected to generate over 50 per cent of this capacity.
India’s cargo traffic handled by ports is expected to reach 1,695 million metric tonnes by 2021-22 according to a report by the National Transport Development Policy Committee.
Within the ports sector, projects worth investment of US$ 10 billion have been identified and will be awarded in the coming five years.
Note: Conversion rate used in April 2020, Rs 1 = US$ 0.013123
TEUs- Twenty Foot Equivalent Units, MMT-million metric tonnes
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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