The average turn around time
has come down from five days to 4 days. Similarly the output
per ship berth day has increased from 4915 tonnes in 1998 to
5337 tonnes in 1999-2000.
The Ninth Plan estimate
shows that 424 million tones (MT) Port capacity is required by
the end of 9th Five Year Plan period (2002). Against
this, the capacity of the existing ports is 215 MT. Some
capacity yielding schemes carried over from the 8th
Plan are under implementation, raising the capacity to 252 MT.
This leaves a gap of 172 MT. It is now proposed to implement new
Schemes in Major Ports for addition of 122 MT capacities
requiring an estimated investment of Rs. 16,000 crores.
Capacity addition of about 50 MT is proposed through development
of minor ports and building captive port facilities by the user
The government has finalized
a scheme for joint venture formations between major port and
minor foreign ports. An amendment to the Major Port Trusts Act
for this purpose has also been carried out recently.
Sixteen private sector projects involving an additional capacity
of 58 million tones and an investment of Rs. 4427 crore have
been approved by the government.
For private participation
from foreign ports in developing ports and facilities, the
government has liberalized the entry norms. The Foreign Port
(s) may implement the Scheme by promoting Indian company in the
form of Special Purpose Vehicle (SPV), without equity
contribution from Major Port Trust; or A Joint Venture Company (JVC)
may be incorporated under the Indian Companies Act with equity
participation from Major Port Trust.
The major Port Trust will maintain a controlling stake ion the
JVC necessary for blocking a Special Resolution.
India is one of the leading maritime nations of the world with 6.8 Million
Gross Registered Tonnage (GRT) rating 17th in the world. Indian
ships carry about 30% of the cargo in India’s import and export trade
equaling about 87.53 Million tones in 2002-03.
Most of the categories of
ships viz. crude tanker, Product Tanker, Bulk Carriers etc. have been
brought under the Open General License (OGL) to facilitate acquisition at
Automatic approval is also
available for acquisition by ship-owing companies for the categories which
are not covered under O.G.I i.e. Barges, tugs and Boats etc.;
Acquisition through Bare
Boat Charter-cum-Demise method;
Shipping Companies have
been allowed to retain sale proceeds of their ships abroad and utilize them
for fresh acquisition;
The Shipping Companies are
now permitted to get their ships repaired in any shipyard without seeking
prior approval from the Government;
Quarterly Block Allocation
scheme for repair of ships has been dispensed with;
Reserve Bank of India
releases foreign exchange for ship repair/dry docking and spares for
imported capital goods, without any value limit;
Freedom to Time Charter
out ships by Indian shipping Companies;
100 percent investment by
NRIs in shipping with full repatriation benefits;
Automatic approval for
foreign direct investment upto 74% in shipping;
Facilities at par with 100
percent EOUs for ship repairs industry;
Freight charges on account
of movement of fertilizers and petroleum products are allowed to be paid in
No permission is required
for raising foreign exchange loans from abroad by mortgaging the vessels
with the lender;
Action has since been
initiated to formulate a National Shipping Policy to provide fiscal,
financial, administrative and legislative measures for growth and
development of shipping in India.
PLAN SHIPPING TARGET
Acquisition of 3.7 Million
Gross Registered Tonnage (GRT) at an estimated investment of Rs. 15,000
Acquisition of 0.265
Million GRT for coastal Shipping at an investment of Rs. 1200 Crores.