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Indian port projects on hold
  Date:01/28/10  |  From:cargonewsasia  |  Click:

With private players deliberating on investing in infrastructure projects in the aftermath of the global slowdown, nearly half of the projects for capacity expansion at Indian ports, scheduled for awarding this year, are likely to spill over into the coming financial year (2010-11), the Business Standard reported.

The Ministry of Shipping has considered awarding 30 projects in 2009-10 through public-private partnership (PPP).

These projects are expected to enhance capacity at the centrally-regulated 12 ports by 46 per cent. Of these, only 10 projects worth $4.3 billoin have been cleared, which constitutes one-tenth of the investment target.

However, the government hopes to clear six more projects worth $1.1 billion by the end of the March deadline. Even with that, only 35 percent of the investment target set out by the ministry for clearing PPP projects would have been met.

In terms of numbers, nearly half the projects worth around $2.8 billion are likely to be carried forward for awarding in 2010-11.

Industry sources attribute the slow privatisation of infrastructure development projects in ports to the guidelines for tendering, which make mostly international players eligible for operating terminals in the country.

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