Maritime Summit: Narendra Modi expects investments of Rs 1 lakh crore

Giving a big push to ports’ development along the country’s 7,500-km-long coastline, Prime Minister Narendra Modi on Thursday said that he is hoping for global investment of Rs 1 lakh crore for the sector. While inaugurating the first Maritime India Summit (MIS) at suburban Goregaon in Mumbai, the Prime Minister expected that the coastline and hard-working coastal communities could become the ‘growth engine’ of India.

“Our vision is to increase port capacity from 1,400 million tonnes to 3,000 million tonnes by 2025. We want to mobilise an investment of Rs 1 lakh crore in the port sector to enable this growth. Five new ports are planned to meet the increasing demand of the Exim trade which will rise in proportion with the fast-growing Indian economy,” the Prime Minister said, touching upon the less explored area of port development.

Pointing at opportunities in the port sector, the PM said, “Our vast coastline of 7,500 kilometres offers a huge investment opportunity. India’s maritime potential also lies in its strategic location on all major shipping highways. In addition, we have an expansive and productive hinterland, through which flows a network of mighty rivers. I call upon the global business community to partner with us to give shape to our process of port-led development.” Mr Modi said that approximately ten million employment opportunities would be generated over the next 10 years.

These would include development of the coastal communities. He also emphasised on building a hinterland network by using rivers.

Welcoming global investors to the country, Mr Modi said, “It is a better time to come through the sea route... Once you are here, I assure you that I will personally hold your hands to see that your berthing is safe, secure and satisfactory.”

Speaking on the government’’s plans for the sector, Modi referred to the shipping ministry showcasing around 250 projects with investment opportunities in the maritime sector. “These projects include various infrastructure development opportunities in 12 major ports, projects in eight maritime states and other agencies. Of these, over 100 projects have been identified under the Sagarmala Programme,” he said.

On the need for collaboration, the Prime Minister said it not just creates and facilitates economic activity, but connects countries and civilisations. He termed it as “the cleanest and cheapest carrier” of global trade.

Also, on the 125th birth anniversary of Dr Babasaheb Ambedkar, the PM paid tribute to the great leader and recalled his vision to initiate the first policy of the country on water and river navigation.

The Centre will table a new bill that will facilitate a model agreement by way of public-private partnership in the port sector. “In the next two months, we will have a new model agreement, hopefully by June 30. The ministry of shipping is coming up with a separate bill that can handle a long-term concessional arrangement between port and terminal operators, said Rajive Kumar, secretary, shipping at the CEOs’ Forum on Day One of the Maritime India Summit in Mumbai.

Mr Kumar said there are several investment opportunities in the dredging and barges development as the coastal cargo movement is set to rise by six times in the next 10 years.

To make the coastal cargo and inland cargo movement economically feasible, Mr Kumar pointed out that duty on bunker fuel has been removed for containers, adding that the objective is to bring down bunker fuel cost further for all cargos. States have been requested to bring down VAT on bunker fuel and three states have responded, he said.

The government is also seriously considering revamping the role of the port regulator — Tariff Authority for Major Ports (TAMP). Responding to a query from the forum, Union minister for shipping Nitin Gadkari said, “We want to close the TAMP chapter immediately and the process is on to replace it with a new system.”