NEW DELHI: With India possessing 7,500 km of coastline, the Centre has laid out its plans to develop ports that would kick-start economic development in these parts. To increase economic activity, the Ministry of Shipping is organising a Maritime India Summit in Mumbai in April aimed at inviting investments in the shipping sector in India.
Speaking at an event organised by ASSOCHAM in Chennai, deputy secretary, Ministry of Shipping, Krishnamoorthy, urged the business community in Tamil Nadu to participate in the summit and be a part of the growth of the shipping industry.
“The ‘Sagar Mala’ initiative is aimed at comprehensively developing the ports situated along the coastline. This initiative will happen in partnership with the Republic of South Korea, which has an advanced shipping industry,” he said.
He added that major developmental programmes include coastal shipping of coal from Odisha to the southern States and creation of around 8 special economic ones across the Maritime States to promote port-led development.
“We have also set up a project to create port-based smart cities in Kandla and Paradip and free trade warehouse zones at Ennore and Cochin,” he said.
The government was looking to develop inland waterways, creeks and rivers to further boost the industry. “We are looking to double the capacity and efficiency of Indian ports. We are also planning to set up 2 mega ports and set up a transhipment hub to facilitate building, repairs and maintenance of vessels,” he said.
He added that India already had a cargo traffic of more than one billion tonnes per annum and the container trade was growing at 6.4 per cent, much higher than the global average of 5.4 per cent in the last decade. “To enable this, we have allowed FDI up to 100 percent in the sector and one-time trading licenses for vessels. We have also set up standardised and a transparent bidding documents for PPP projects,” he said.
He also pointed out that the government provided various incentives for investors. “We have reduced Service Tax incidence on coastal shipping and fiscal incentives for shipbuilding and repair keeping in line with Prime Minister Narendra Modi’s vision that the maritime sector has a vital role in India’s progress,” he said.
Officials from Madras Chamber of Commerce and Tamil Chamber of Commerce welcomed these initiatives and urged the Ministry of Shipping to ensure that ease of business is achieved. The three-day summit will start on April 14, 2016 at Mumbai.
