India seeks FDI in port-projects
The Dollar Business Bureau
Prime Minister Narendra Modi on Thursday insisted the global business communities to invest in India’s port-led developmental projects, which he said, would reinvigorate India’s importance in the global maritime sector.
“I call upon the global business community to partner with us to give shape to our process of port-led development,” he said, addressing the inaugural edition of the Maritime India Summit, 2016 on Thursday.
Referring to the Sagarmala programme, which is aimed at leveraging India’s long coastline and natural maritime advantages, energising the coastal economy and infrastructure development and promoting port-led development, the Prime Minister indicated these projects open up massive investment opportunities.
“We particularly want to modernise our ports and integrate them with Special Economic Zones, port-based smart cities, industrial parks, warehouses, logistics parks and transport corridors. It is my Government’s endeavour to revive and restore India’s position of eminence in the global maritime sector,” he said.
The two-day summit, currently being held in Mumbai, has attracted over 4,500 dignitaries and delegates from around 40 countries. South Korea is the partner country of the summit.
Modi highlighted India’s pro-business environment and his government’s continuous effort to make the country a global manufacturing hub in his remark. He said he had taken plenty of decisions on the ease of doing business, besides carrying out several policy corrections and simplifications, liberalising licensing rule, putting FDIs on automatic approval route and facilitating several financial-assistance schemes.
In the last two years, 56 new projects have been awarded to major ports, involving a total investment of over Rs.250 billion. The investment is expected to create an additional port capacity of 317 MTPA (million tonnes per annum).
The government plans to increase port capacity to 3000 MT from 1400 MT tonnes by 2025. It says it would require an investment of one trillion rupees to enable this growth in the port sector.
“Five new ports are planned to meet the increasing demand of the Exim trade which will rise in proportion with the fast-growing Indian economy. New ports are also being developed by several coastal states of India,” Modi said.
On Wednesday, India and South Korea signed a Memorandum of Understanding (MoU) to encourage and facilitate port-developmental projects.
The Ministry of Shipping had earlier said the two day sessions will record signing of more than 120 business and concession agreements and EPC contracts, worth over Rs.82 thousand crores (over $12 billion).