Shipping Ministry plans 7 SPVs to set up 7 major ports

The ministry of shipping is planning special purpose vehicles (SPVs) to execute seven big-size ports which are likely to be allowed to raise money from the market.

The government has envisaged setting up of seven major ports by 2017 at an estimated investment of Rs 35,000 crore.

"These seven ports would be corporatised...just like the Ennore Port... they can raise funds on their own...initially the (Shipping) Ministry can pump in some money or help them with funds though," a ministry official said.

The ministry has asked the maritime states to offer land. Approximately Rs 5,000 crore is incurred for setting up a port project.

"We have requested maritime states to come forward and offer land to develop these big-size ports," another official said.

Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Maharashtra and Gujarat are expected to get one port project each, which would be executed by the SPVs.

At present there are 12 major and 176 minor ports in the country.

The 12 major ports are Mumbai, Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatanam, Kochi, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin and Kandla.

Andhra Pradesh government is believed to have shortlisted two sites for setting up a major port in the state.

The Shipping Ministry plans to create a port capacity of around 3,200 million tonnes (MT) to handle the expected traffic of about 2,500 MT by 2020. About 90% by volume and 70% by value of the country's international trade is carried through maritime transport.