Andhra Pradesh stands 1st in port under construction

By Accommodation Times News Service

Andhra Pradesh has backed out in ranking first in value terms in port projects that are under construction in public-private partnership mode as of April 30 followed by our very own state, Maharashtra according to a study by industry body Assocham.

The study titled ‘Port Developments in India’ says Kerala stands first in value terms in port projects under bidding stage, followed by Maharashtra again.

Andhra Pradesh has the highest share of over 46.2 per cent in port projects under construction worth Rs 20,090 crore, Kerala, with two projects worth over Rs 5,500crore, has the maximum share of about 40 per cent in the projects under bidding.  In Maharashtra, five completed port projects worth over Rs 3,700 crore have been put to service delivery under the PPP model, while three projects worth over Rs 6,700 crore are under construction and three valued at Rs 5,100crore are under bidding. Gujarat, however, accounts for lion’s share of over 50 per cent in the total number of completed projects in the ports sector that have been put to service delivery under the PPP model, the study said.

“Of the total 31 PPP port projects worth over Rs 24,700crore under operation in India as of April 30, Gujarat accounts for 12 completed PPP projects worth over Rs 12,400crore, thereby commanding the highest share of over 50 per cent in value terms,” said Assocham National Secretary General D S Rawat.  Adding further he said, Out of the total 881 PPP projects worth over Rs 5.4lakh taken up under the PPP model across the country, 62 projects in the port sector worth over Rs 82,000crore are in different stages of implementation. While there are about 21 PPP projects in the port sector with a share of 52 per cent worth over Rs 43,000crore under construction, eight projects worth about Rs 14,000crore with a share of about 17 per cent are under bidding. Of the remaining, one project is in the expression of interest (EOI) stage and one has been cancelled.
Assocham, however, feels ports sector needs policy attention as there exists not only severe capacity constraints and operational inefficiencies, but also certain models on how to address these issues. Considering that the port infrastructure is not at par with the global standards, the inefficient port services pose severe challenges to the country’s trade as the inefficiency and non-competitiveness of India’s ports results in higher costs apart from the turnaround time at ports, Rawat said. “There is an urgent need to modernize India’s ports as the existing ones are plagued with a plethora of problems like congestion, poor connectivity, accessibility and lack of adequate facilities. He added there is a huge scope for investments in development of port infrastructure which needs to develop fast and the capacity utilization must also be improved.

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