Govt fixes Rs.5L-cr for shipping

Vizag : In an attempt to increase country's port capacity to 3 billion tons per annum by 2020, the Union Shipping Ministry has decided to invest Rs. 5L-cr in the shipping and port sector. In addition to this, it has also chalked out various policy initiatives and reformists measures in the country's shipping sector. The allocation of Rs. 193cr to the Visakhapatnam and Morgugao Port Trusts and also Rs. 97cr to the Coachin Port Trust for providing rail connectivity is also a part of the government's future expansion plans.

According to sources, to make available sufficient funds for meeting its expansion plans, the shipping ministry is also raising Rs. 5,000cr by tax free bonds through the Maritime Finance Corporation, which is being set up under the Maritime Agenda, 2020. Ensuring smooth sailing on the funding front, in the Budget proposals for 2011-12, the government has also permitted the port sector to raise money by way of issuing tax free bonds. In this connection the government is currently in the process of identifying a market lead manager for the issue and it would be decided within a fortnight. In the prevailing scenario in the port sector, the project authorities in the maritime segment are finding it increasingly tough to raise funds and achieve financial closures of their respective projects. Tackling this issue the government is all set to float a specialized Maritime Finance Corporation with equity of port and financial institutions to fund the future port projects.