Sagar Port News

Indian Government has given in principle approval to a grant of Rs. 515 crores ($77.4 Mln ) to make the development of the proposed Sagar Port project in West Bengal financially viable. This is part of the continuous efforts by the Ministry of Shipping during the last two years for the development of this port. A Special Purpose Vehicle, Bhor Sagar Port Limited (BSPL) has been incorporated for the implementation of the project, with Kolkata Port Trust holding 74% equity and the Government of West Bengal holding 26% equity. IIT, Madras has been engaged to prepare a Detailed Project Report (DPR) for the port, involving studies for shore-protection, land reclamation and physical modeling for use of dredge material. The work of preparing the DPR is underway.

The Ministry of Shipping has taken many proactive and progressive interventions in the areas of shipbuilding, port development, inland waterways and coastal shipping this year for the development of the maritime sector in the country. The key initiatives includes  Sagarmala Project, Special Purpose Vehicle to provide efficient last mile rail connectivity to Major Ports, Incentive for Shipbuilding and ship-repair Industry,  Jal Marg Vikas Project, Customs and Excise Duty Exempted on the Use of Bunker Fuels for coastal transportation of EXIM and empty container and for domestic containers transported alongwith EXIM and empty containers, Cabotage Relaxed for Special Vessels and Developing 78 lighthouses as tourism centers.

The Indian ministry of shipping unveiled its vision document for Coastal Shipping, Tourism and Regional Development on Monday at Dona Paula, Goa at the 16th meeting of Maritime States Development Council (MSDC), reports Times of India. The government will encourage Indian ship owners and operators to acquire roll-on-roll-off vessels, passenger ferries, car and truck ferries and cargo carriers. This is one of the key points that the central ministry of shipping has mentioned in its vision document for coastal shipping, tourism and regional development. The document that seeks to ensure that the maritime sector contributes to the country's GDP was released by union minister of shipping, road transport and highways Nitin Gadkari, who also chaired the meeting.

Indian Minister for Shipping, Road Transport and Highways, Nitin Gadkari, has said that the Ministry has prepared a scheme to offer subsidy to the shipbuilding industry, says Press Information Bureau of the government. The proposal has been sent to the Cabinet Ministry for approval. The government would open up a sub-centre of maritime university at Ratnagiri in Maharashtra to cater to the three states — Goa, Gujarat and Maharashtra — for which JSW has already allotted 200 acres of land. He said by 2020, the maritime industry would provide jobs to over 65 million skilled labourers all over the world. Gadkari said the government would provide financial assistance of Rs 50 crore to the Centre, which would provide training in the maritime industry.

Indian minister for shipping, Nitin Gadkari, says that was a dire need for restructuring of shipping companies’ debt and suggested the finance ministry to talk to banks for more flexibility towards the maritime sector. Nitin Gadkari, the minister for shipping, has requested the finance ministry to consider restructuring of loans for the debt ridden shipping companies and show more flexibility in bank lending towards the shipping and ports sectors. Nitin Gadkari also said that his ministry has recommended to the government to provide various tax incentives to the sector to make the industry more profitable. There should be more tax exemption for the sector to beef up companies' earnings. He pointed out that the registration of ships overseas is tax-free while in India it is taxed.

The Indian government has decided to set up two new major ports, one at Sagar in West Bengal and the other at Dugarajapatnam in Andhra Pradesh. In respect of the Sagar Port, RITES has estimated capital cost (including connectivity project) at Rs. 7820 crores. The tentative cost for Dugarajapatnam has been estimated at Rs. 7988 crore by the Technical Committee set up by Ministry of Shipping. However, the feasibility study of the proposed location is also being carried out by RITES. In respect of Ports at Sagar and Dugarajapatnam, the concessions are targeted to be awarded in the financial year 2014-15. The government has initiated a series of measures to modernise Major Ports in the country. As part of the endeavor, in 2012-13, 32 projects were awarded involving an estimated cost of Rs.