NEW DELHI: The project, "Sagar mala (garland of ports)", announced by Prime Minister Atal Bihari Vajpayee in his address to the nation on Independence Day Friday, envisages investment through a mix of public and private funding, Shipping Minister Shatrughan Sinha said at a press conference here Friday. "This project will cover all facets of maritime transport including ports, shipping and inland waterways with the aim to fully realise the potential of sea-borne trade and inland water transport systems, which will play a catalytic role in the speedy development of the country," said Sinha. "Sagar mala" aims to link ports with inland waterways, expand and modernise ports along India's east and west coasts and develop of inland navigation. Around 95 percent of India's import-export trade conducted through the maritime route. This accounts for 75 percent of India's total global trade. Besides being the most economic mode, development of inland water transport is expected to reduce India's energy consumption. According to the shipping ministry's estimate, only 0.15 percent of the 1,000 billion tonne cargo transported within the country is by the inland waterways. Even if just two percent of this cargo switches to the waterway route, the country could save 644,000 kilolitres of fuel or 12 billion. "This saving in national resources and the attraction of better shipping facilities makes us sure that the project will pay for itself over the years. We see no problem with attracting private investment as experience with several of our ports has shown that global majors are interested in investment where the infrastructure facilities are good," said the minister. Sinha is banking on the private and foreign direct investment to meet over 80 percent of the project cost, with the government having to invest in providing inland infrastructure like better road and rail connectivity to the ports. As a first step towards improving the shipping sector, integrated development of Nhava Sheva port in Maharashtra, and Kochi and Vallarpadam container trans-shipment ports in Kerala will be undertaken at a cost of 75 billion. "Though the prime minister has announced work on the two projects will begin by March 2004, we hope to start is earlier. We are ready to go to the Public Investment Board with the proposals," Sinha said. Once the approval has been received, the shipping ministry will move ahead with plans to seek private investment. "In the next eight to ten years, we hope to improve all the minor and major ports in the country, including deepening of draft and upgrading equipment to cater to the needs of international maritime flows. Due emphasis will also be given for development of cruise terminals," said Shipping Secretary D. T. Joseph.
Source: IANS