Indian Government to expedite approval of port development projects with new security committee

21 Nov 2011 - Port Planning

The Prime Minister's Office (PMO) of India has established a new committee to expedite security clearance of around a dozen port projects in the country, including projects at Kandla Port and Mumbai Harbour.

The new committee will be headed by Cabinet Secretary AK Seth. Reports suggest that the new initiative is an effort by the United Progressive Alliance (UPA), India's ruling political coalition, to cut bureaucracy and "policy paralysis". Previously, a committee chaired by India's defence secretary was tasked with granting security clearances.

The Cabinet Secretariat has reportedly asked the Shipping Ministry to send its agenda for the first meeting of the new committee. "We will submit the pending proposals so that necessary clearances are obtained. Once we have it, the process of tendering can be expedited," said a senior official told the Times of India.

The new accelerated process will apply to around a dozen port projects such as the new bulk terminal in Kandla, in which R1,060 crore ($203,611,00) is being invested; as well as the Mumbai Harbour Channel at Jawaharlal Nehru Port Trust (JNPT), which is worth R1,360 crore ($261,237,000).

Also awaiting the committee's approval is the development of north cargo berths (NCB) at Tuticorin Port; a single-point mooring terminal at Kandla and the conversion of eighth berth as container terminal at Tuticorin Port.

This financial year the Ministry had aimed to approve a target of 23 major public-private partnership (PPP) port development projects. To date, only one such project has been approved: a consortium of Port of Singapore Authority (PSA) and ABG Ports was awarded the contract for the construction of a fourth terminal at JNPT, in which R6,700 crore ($1,286,977,000) will be invested.