The government has proposed an investment outlay of Rs 73,793 crore under the 12th Five Year Plan to enhance the capacity of 13 minor/non major ports that come under the State governments. It is expected that this will increase the capacity of these ports by 78%.
Currently, about 64% of the traffic is handled by major ports (which are owned by the Central government) whereas minor ports handle about 36%. The share of non major ports is expected to go up to 51% in the next 10 years. The volume of traffic as on March 2012 stood at 689.83 million tonnes per annum. It is expected that the investments will enhance this to 1,229.24 million tonnes per annum by the end of FY’17.
It has been planned that 25 projects will be awarded under private-public-partnership (PPP) to enhance the capacity of ports. For the 12th Five year plan, it is expected that investment by the private sector will be around Rs 51,036.56 crore. This is 6% lesser than that in the 11th Five Year Plan.
So far, private ports, even though minor, have done better than the government owned ones and have posted double digit traffic growth. This has been due to the superior quality of service and infrastructure provided by them.
Cargo growth in Indian ports has grown by 4% year-on-year in 2010-11. Volume of major ports has increased by 1.6% whereas growth for the minor ports has been around 9%. It is expected that Indian ports will handle 1 billion tonne of cargo in FY’12, 2 billion tonne by FY’17 and 2.4 billion tonnes by FY’20.
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