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  3. Govt plans to offer 850 ports for development to private sector

Govt plans to offer 850 ports for development to private sector

28 Sep 2015 Evaluate

With an aim to scale up inland waterways infrastructure in the country, the government is planning to offer 850 small and medium sized ports along key rivers for development by the private sector including foreign investors which could see investment of nearly Rs 4,000 crore. The government proposes to offer ports along the riverside systems of the Ganga, Brahmani, Brahmaputra, West Coast Canal, Godavari, Krishna and Barak for development. Most of these ports will fall along coal bearing routes making them commercially exploitable. The projects will be offered on the design, built, operate and transfer model.

The government is eyeing huge opportunity in transportation of coal to power plants along these rivers, having set an internal target of over 200 million tonnes. The shift of transportation of coal from railways to river ways will not only be environment friendly but also will bring down overall transportation cost. For 12 power projects along Ganga, coal could be transported through the river and goods can directly be exported to Bangladesh through waterways. Under the upcoming model concession agreement (MCA), the government is likely to offer a contract period of 30 years, making it a worthwhile proposal for private investment.

In order to develop inland transportation network, the government has already firmed up a plan to develop 101 inland waterways in different states that will require an estimated Rs 35,000 crore. Further, work has begun on three multi modal logistics hubs along the Ganga. Moreover, there is also a plan to set up satellite and dry ports to facilitate cargo movement through trains from states that don't have waterways.

Earlier, Shipping minister Nitin Gadkari had said that the inland waterways sector along with international ports will contribute over 1 per cent to the country's GDP in the next few years. Inland waterways in India make up a paltry 3 per cent of the total transport, compared with 47 per cent in China and 35 per cent in Bangladesh.


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