Ports

India has streamlined and expanded scope for investments in the maritime sector with a focus on developing, maintaining, and operating ports, inland waterways, and shipbuilding in India.

India allows up to 100 percent foreign direct investment (FDI) under the automatic route for projects related to the construction and maintenance of ports and harbors. In the last two decades, Indian ports have attracted a cumulative FDI amounting to INR 122 billion (US$1.64 billion).

As a part of the Sagarmala Programme, more than 800 projects at an estimated cost of around 5.5 lakh crore have been identified for implementation during 2015-2035 across all coastal states Eastern and Western sides of the country. Sagarmala projects include projects from various categories such as modernisation of existing ports and terminals, new ports, terminals, RoRo & tourism jetties, enhancement of port connectivity, inland waterways, lighthouse tourism, industrialization around port, skill development, technology centres, etc.

a total of 567 projects with an estimated cost of around ₹58,000 crore have been identified. Sagarmal Project Plan (2015-2035), over 574 new projects to be implemented by 2035 and an investment to the tune of INR 6 trillion has been invited, including from the private sector, towards areas of areas of port modernization and new port development, port connectivity enhancement, port-linked industrialization, and coastal community development. As of September 30, 2019, a total of 121 projects at a cost of INR 302.28 billion (US$4 billion) were completed and 201 projects at a cost of INR 3.09 trillion are under implementation.

Around 95% of India’s trading by volume and 70% by value is done through maritime transport. India has 12 major and 205 notified minor and intermediate ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. The Indian ports and shipping industry play a vital role in sustaining growth in the country’s trade and commerce. India is the sixteenth-largest maritime country in the world with a coastline of about 7,517 kms. The Indian Government plays an important role in supporting the ports sector. It has allowed Foreign Direct Investment (FDI) of up to 100% under the automatic route for port and harbour construction and maintenance projects.

Recently, all key ports in India handled 322.64 million tonnes (MT) of cargo traffic. India’s merchandise exports in FY22 were at US$ 417.8 billion.The Government of India has taken several measures to improve operational efficiency through mechanisation, deepening the draft and speedy evacuations.

The capacity addition at ports is expected to grow at a CAGR of 5-6% till 2022, thereby adding 275-325 MT of capacity.

Sagarmala is an ambitious national initiative aimed at unlocking the full potential of India’s coastline and waterways. The vision of this flagship program of the Ministry of Ports, Shipping & Waterways is to reduce logistics costs and catalyse port-led industrial and infrastructure development along the coastline.

A 10-year maritime sector blueprint, “Vision India 2030″, was also released outlining the country’s vision for the development of the sector. This vision includes setting up smart ports, creation of a Maritime Development Fund (MDF) with a corpus of INR 250 billion, & the establishment of a pan-India port regulatory authority.

Recently, the National Sagarmala Apex Committee (NSAC) officially approved increasing the number of projects under the Sagarmala program to 1537 at a total worth of INR 6.5 trillion. A total of 29 projects worth Rs 45,000 crores [INR 450 billion] have been successfully implemented under the public private partnership (PPP) model and additional 32 PPP projects worth Rs 51,000 crores [INR 510 billion] are currently being implemented. It is estimated that another 200 projects worth Rs 2.12 lakh crores [INR 2.12 trillion] are under construction and expected to be completed in next two years.”