Following is the speech
of Shri G.K. Vasan, Minister for Shipping at Ports and Maritime Investment and
Business Conclave held in Chennai today:
“Let me begin by thanking you all, on behalf of the Ministry of
Shipping, for your presence at this important conclave.
Mr. Mohandas has already presented to you the emerging scenario in ports
and maritime sector and the efforts being made by the Ministry of Shipping to
meet the challenges.
I carefully heard the perspectives of the Panel members and welcome the
suggestions made by them. I want to
assure you that the UPA Government is seized of the issues raised and we are open
to new ideas and suggestions to further strengthen the partnership with the
private sector to realise the true potential of the Maritime sector.
Ladies and Gentlemen, Indian economy is at the threshold of a golden age
of growth and development. This was very
clear when the Indian economy was not affected much by the global recession and
maintained a growth rate above 7%. This
year, the GDP is expected to grow at a healthy 9%.
The good news is that the global economy has also started showing signs
of recovery. The World Bank has
projected that the global economy will grow by 2.7% this year.
All this will entail increasing demand for port and maritime
infrastructure and services. We have
witnessed unprecedented growth, as high as 23.8% in exports from 2004-05 to
2008-09. Though 2009-10 was not good due
to global recession, this year we are expecting a huge jump in India’s trade.
India’s external trade, as a proportion of GDP has more than doubled in
the last 10 years and is close to 40%.
Bulk of this international trade is carried through shipping.
One can imagine the importance of the ports and maritime sector for
India, when 40% of the GDP is linked to external trade. We also expect that in future, high demand
for energy will result in increased import of coal and oil. Similarly the container volumes in India are
expected to witness very high growth in the years to come.
My Ministry has been taking various initiatives to rapidly modernise and
develop the ports and maritime sector so that it can sustain and accelerate the
current growth momentum.
In the last 2 years, nearly 22 PPP projects have been awarded at a total
investment of about Rs.9077 crores. To facilitate private sector investment, we
have put in place a favourable and investor friendly policy framework which
includes:
-
100% FDI allowed in Shipping and Port sector.
-
Standardised RFQ, RFP and model concession
agreements.
-
Upfront tariff fixation by TAMP for PPP projects.
There has been tremendous growth in non-major ports as well and the
Shipping Ministry is proactively facilitating this development. Since this Conclave is taking place in
Chennai, I would like to mention that we are proposing to develop Colachel Port which has a deep draft and is strategically
located close to the International maritime routes. We will do this in collaboration with the
Government of Tamilnadu.
I am very pleased to inform this forum that due to the significant
growth in capacity in major and non-major ports in the last 2 years, the Indian
Port capacity has crossed 1 billion tonnes last week.
Similarly, four months ago, the Indian tonnage crossed 10 million
GT. Shipping Corporation of India which
accounts for one third of the Indian tonnage has acquired many new vessels and
has successfully raised resources through an FPO to fund future expansion.
We have also brought out a new land policy and a policy to prevent
monopoly in ports. We have formulated a
package to promote Indian shipbuilding which will be taken to the Cabinet very
soon. The Ministry is also working on a
new policy to promote coastal shipping.
All of you must be aware that recently we have released the Maritime
Agenda, 2020 which is a vision document for the next 10 years. We have set some important goals to strive
for:
-
To increase the port capacity to around 3200
million tonnes which will require an investment of about Rs.3
lakh crore.
-
To increase the Indian tonnage four fold to 43
million GT by 2020.
-
To enhance India’s share in global shipbuilding to
5%.
-
To increase the share of Indian seafarers to atleast 10%.
To achieve these goals, the Government will need the full co-operation
of all stakeholders particularly the private sector. Bulk of the resources needed to achieve the
capacity targets is expected to come through PPP mode.
In this context, this conclave is very useful and appropriate. I want to commend the Confederation of Indian
Industry for taking the lead in highlighting the vast potential for investment
in Ports and maritime sector.
Ladies and Gentlemen, let me conclude by stressing that we need
concerted efforts to take this sector forward and I urge you to participate in
India’s Port and Maritime development programme as active partners of the
Government. I assure you of all
support.”
MC/DG/ls