States cool to govt's proposal for new greenfield shipyards | business | Hindustan Times
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States cool to govt's proposal for new greenfield shipyards

business Updated: Oct 17, 2011 21:41 IST
Debobrat Ghose
Debobrat Ghose
Hindustan Times
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A new proposal from the ministry of shipping to set up of major integrated shipyard-cum-ports in the coastal states has received a lukewarm response.

The ministry had written to the nine coastal states about the above plan in order to reduce traffic pressure on major ports in the country. Only Andhra Pradesh and Kerala have so far responded to the proposal.

The state governments have sent proposals to the ministry, identifying prospective locations respectively at Vizhinjam and Nakkapalli. A technical committee appointed by the ministry will examine the locations.

“We’ll appraise each proposal and final selection will be made on the basis of its commercial viability,” shipping secretary K Mohandas told Hindustan Times.

According to an assessment made by the ministry on port capacity requirement vis-à-vis current level of economic growth, the port capacity is expected to grow three times in the next ten years.

“Development of new ports is necessary to ensure that ships are received and served faster at the ports, because we want to bring down the average capacity utilisation of ports from present 85-90% to 70%,” Mohandas added.

Currently, the vessels at the major ports have to wait in queue for anchorage, cargo unloading and loading thereby resulting in delays.

To be developed on the ‘Land locked port’ model, the central government will make the preliminary investment in basic infrastructure like land development, construction of break-waters, development of berths and other facilities on public-private partnership basis. Each project will require minimum 4000 acre of land for the greenfield project.