Ports and Shipping

SUMMARY

  • 118 projects involving investment of USD 7.73 billion have been approved in last four years.
  • India has 12 major ports and 64 minor ports handling Export Import cargo.
  • Indian ports handled 1605 million metric tonnes of cargo in 2015-2016
  • USD 2.69 billion invested in last three years in Ports & Shipping sector.

FDI POLICY

  • To attract investment for the growth of this sector, the Government has allowed 100% Foreign Direct Investment (FDI) in the shipping sector.
  • 100% FDI is allowed under the automatic route for projects related to the construction and maintenance of ports and harbours.

SECTOR POLICY

  1. Major ports are under the jurisdiction of the Government of India and are governed by the Major Port Trust Act, 1963 (except Ennore Port which is administered under the Companies Act, 2013)
  2. Non-major ports are under the jurisdiction of the respective state government’s maritime boards.
  3. A perspective plan of the government defines priority areas of investment in the Indian maritime sector. These include:
    • Development of two major ports as well as two port hubs.
    • Plans to implement full mechanisation of cargo handling and movement at ports.

FINANCIAL SUPPORT

KEY PROVISIONS IN BUDGET 2015-16:

  • Allocation of USD 1.79 billion for the development of the Outer Harbour Project in Tuticorin for Phase I.
  • A Ganges-based project named ‘Jal Marg Vikas’ will be undertaken between Allahabad and Haldia. This project is to be completed over a period of six years at an estimated cost of USD 646.15 million.
  • Exemptions under the Income Tax Act for Infrastructure Development, under Section 80IA.

INVESTMENT OPPORTUNITIES

  • Port development – the opportunity to serve the spill demand from major ports.
  • Port support services – operation and maintenance services such as pilotage, dredging, harbouring and provision of marine assets such as barges and dredgers.
  • Ship repair facilities in ports – demand for ship repair services will increase, providing opportunities to build new dry docks and set up ancillary repair facilities.

 

INDUSTRY UPDATES

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Air India Improvement In Operational And Financial Performance

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