Development of Visakhapatnam port as a landlord port will be a reality soon with the Union Budget laying emphasis on fast-track clearance to PPP projects.
Visakhapatnam port is investing nearly Rs.14,000 crore on mechanisation mostly in PPP mode to face competition. The budget promises to encourage port-based activity at Kakinada with special focus on hardware manufacturing.
The budget has raised hopes among private investors due to thrust laid on PPP mode though many of private players expressed their anguish at not getting many incentives. There is no clarity on where 16 ports promised by the government will be located.
End of Tariff Authority for Major Ports (TAMP) regime to create a level-playing field to compete with minor ports and tax concessions as sought by the private berth operators seems to have been ignored. The demand for relaxation of Cabotage law to promote domestic transport also does not find a mention.
“Though transport and logistic sector is being encouraged with some policy incentives, there is nothing specific to cheer,” MD of Sravan Shipping G Sambasiva Rao told The Hindu.
“On the other hand massive privatisation would pave the way for downsizing,” senior trustee of Visakhapatnam port V.V. Rama Rao said.
Service taxBOT operators said slashing of service tax applicable for ocean freight for coastal shipping would help the shipping industry to some extent. The budget lacks clarity on the UPA’s announcement to transform Visakhapatnam into a hub port. UPA government’s proposal to set up a major port by the government by involving BOT players at Dugarajapatnam in Nellore does not figure in the budget. The State government is said to be toying with the idea of relocating the project to Ramayapatnam in Prakasam district.
The shipping industry which is facing the heat due to economy slowdown has been promised support by the government. “An industry like Hindustan Shipyard Ltd needs working capital and orders to improve it financially,” said INTUC district president Mantri Rajasekhar.
