India Ports Limited, being constituted to invest in ports and marine facilities abroad, will have an initial equity base of Rs.3,000 crore, raised from cash-rich public sector major ports and private financial institutions. The new investment arm will be promoted on a 50:50 basis by the public and private sector partners, said Union Shipping Secretary K. Mohandas here on Saturday last.
He said he expected the proposal for forming the new entity would come up before the Cabinet in two months. Countries all over the world are open to the idea of developing port facilities with foreign collaborations and India can make investments that are commercially and strategically important. Besides, India has a long maritime history and a large pool of personnel capable of undertaking operation of maritime entities.
Mr. Mohandas said that major ports in the country would have a new land use policy by the end of March which would help them utilise the land in the best way.
The Union Government was close to finalising a programme of cargo support for Indian flag vessels, he added. Cargo support is not an original idea. Though it is not fashionable, it is a practical one being considered to help the Indian shipping industry, which faces rough weather on account of the global slump in shipping business.
The Shipping Secretary said that only about 8 per cent of the Indian cargo was carried in Indian bottoms. This figure was around 30 per cent in the 1980s. Indian flag vessels accounted for just about one per cent of the global maritime cargo movement.
The Shipping Ministry was now consulting ministries such as petroleum, fertiliser and steel that could provide cargo support to Indian flag vessels, he said.
