A study taken up by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on development of ports has found that implementation of port projects among the nine maritime States of the country is poorest in Andhra Pradesh and Karnataka for political reasons.

Investors not confident

Political uncertainty, particularly in the backdrop of agitations over statehood issue, has kept away investors from participating in the projects in Andhra Pradesh.

It was bad time for the sector in Karnataka because of poor governance till recently, the national secretary general of ASSOCHAM D.S. Rawat told a press conference while releasing the study paper here on Friday. The investors were not confident and, hence, did not come forward to invest in both the States, Mr. Rawat said.

The study revealed that only 31 out of 62 port projects launched in the public private partnership (PPP) mode at a cost of Rs. 82,403 crore were in operation till April 30. There were 21 projects in construction stage, eight under bidding and one each were cancelled or merely had expression of interest from the proposed concessionaire.

No projects in Karnataka

While not a single project was completed or taken up for construction in Karnataka, there were three projects that were completed for Rs. 1,425 crore and three others under construction for Rs. 20,090 crore in Andhra Pradesh.

However, there were no more projects in Andhra Pradesh at the bidding stage, but Karnataka had three out of eight.

The study showed that live projects were high in Gujarat where 12 of them were already completed and four were under construction, but their implementation was not good. However, Odisha was the most happening State in the sector as it showed political will.

Odisha’s share in total cost of completed projects was 17 per cent though Gujarat topped the table with 52 per cent. Both the States achieved the expected addition in the capacity to handle cargo up to 2011.

Revamp of strategy

The ASSOCHAM suggested to the government to quickly revamp its strategy for development of ports to attract maximum private resources for road infrastructure, coastal shipping and inland waterways.