The Hindu : Karnataka / Bangalore News : State may open up ports for private investment

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Sunday, Sep 14, 2008
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Karnataka

Karnataka - Bangalore

State may open up ports for private investment

Nagesh Prabhu

10 ports to be developed in five years; private participation to be encouraged

Investors’ meet planned in Bangalore
Karwar port to be developed at a cost of Rs. 1,200 crore

BANGALORE: The State Government has proposed to convene a global investors’ meet in November in Bangalore for exclusively attracting investment in the port sector.

Minister for Ports and Environment J. Krishna Palemar told The Hindu here that the Government had decided to develop 10 ports in the State in five years. At least Rs. 1,000 crore would be required for development of each port.

Since funds at the Government’s disposal was limited, it was proposed to hold investors’ meet in Bangalore by inviting leading companies involved in the modernisation of Indian ports.

The Government had decided to hold global investors’ meet in January for attracting investment in other sectors of the economy.

The Port Ministry was preparing a master plan for development of all ports and it would be released within a month. The plan would include details regarding investment required for development of each port across three coastal districts, except Karwar, Malpe and Honnavar. The development of ports would help the coastal region get more investment, the Minister said.

Mr. Palemar, who recently visited Mumbai Port to study the facilities there, said a decision had been taken to modernise 10 ports with private participation in the next five years.

The ports which would be developed are Karwar, Belekeri, Tadari, Honnavar, Bhatkal, Gangolli, Hangarkatta, Malpe, Hejmady and Old Mangalore Port.

The Government had decided to develop the second and third stages of Karwar port at an estimated cost of Rs. 1,200 crore on a public-private partnership. The port, which now handled three million tonnes of cargo, would be able to handle more than eight million tonnes of cargo after completion of second and third stages.

Two berths would be built in the second stage. The Public Works Department, the nodal department for implementing the project, would finalise the contractor for executing the project from among four private companies which had been short listed.

The officials said the Government had proposed to develop third stage of the port with an estimated cost of Rs. 700 crore and modalities to be worked out soon.

The fishing harbour at Malpe would be developed at a cost of Rs. 1,350 crore. The Malpe fishing harbour located in Udupi district happened to be the centre of highest fishing activities in the State. Nearly one-third of dredging work of the Malpe harbour had been completed and the remaining work would be taken up soon, Mr. Palemar said.

A large number of bigger fishing boats such as purse seiners, trawlers, multi-purpose vessels operate from Malpe base, besides boats from neighbouring centres. Existing facilities built under stage I and stage II have become quite insufficient to the needs, according to a government document.

The State High Level Committee (SHLC) headed by Chief Minister B.S. Yeddyurappa has cleared a project for development of Honnavar port at a cost of Rs. 1,100 crore. The modalities for taking up the project would be completed soon.

The Minister said seven ports — Belekeri, Tadari, Bhatkal, Gangolli, Hangarkatta, Hejmady and Old Mangalore would be developed on built, own, operate and transfer (BOOT) basis.

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