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Govt to develop 6 shipping projects worth Rs 3,300 cr

New Delhi, July 02, 2009

The Shipping Ministry on Wednesday proposed awarding six port projects worth Rs 3,319 crore and declaring Andaman and Nicobar Islands and Lakshadweep as major ports, taking the total number of major ports in the country to 14, as part of its 100-day agenda.

"The total estimated cost of the six projects is Rs 3,319.14 crore and they are expected to add capacity of 31.23 MT and 1.97 million TEUs," Shipping Minister G K Vasan told reporters in New Delhi while unveiling the 100-day agenda.

The projects have to be awarded under the public-private-partnership mode.

"It is proposed that the Andaman and Nicobar Islands and Lakshadweep would be declared as major ports after seeking cabinet approval," Vasan said.

With the addition of these two, the number of major ports will go up to 14 from the existing 12.

About Dredging Corporation of India, the Minister said it will be acquiring 3 dredgers at an estimated cost of Rs 1,570 crore.

The Ministry is also looking at a proposal for financial restructuring of Hindustan Shipyards Limited and is looking part commissioning of Small Ship Division of Cochin Shipyard Ltd at an estimated cost of Rs 98.63 crore.

The second phase of capital dredging of National Waterways no 3 on West Coast canal will be implemented at an estimated cost of Rs 89.74 crore within 100 days, the Minister said.

"Acquisition of one 400-passenger ship for Lakshadweep Administration and one 500-passenger ship for Andaman and Nicobar administration will be pursued by the Ministry," Vasan said.

He added that there is a proposal for strengthening of Indian Maritime University and the government had already set up a central university in Chennai with campuses at Kolkata, Mumbai and Vishakhapatnam.

Of the 6 port projects to be awarded within 100 days, two relate to Paradip Port -- Rs 591.35 crore Deep Draught Coal Berth project and Rs 479.01 crore Deep Draught iron ore Berth -- that would help in de-congestion of port due to handling of coal and iron ore in higher capacity vessels up to 1,25,000 DWT.

The third project targets development of eight berths as container terminals of capacity 4.7 lakh TEUs at a cost of Rs 312.23 crore at the Tuticorin Port in Tamil Nadu. A coal terminal at a cost of Rs 252.44 crore to raise capacity to 4.61 million tonnes per annum of the Mormugao port in Goa has also been proposed.

A mechanised iron ore handling facility as a back up requirement to deep draft at the multipurpose Berth No 14 would be developed at Rs 277.11 crore at the New Mangalore Port in Karnataka.

A container terminal would be developed for Rs 1,407 crore having capacity of 1.5 M TEU at the Ennore Port.