Ministry proposes 50% grant for dredging projects

The union shipping ministry made a proposal to give up to 50 per cent of the capital dredging costs of ports as grants from the centre.

Currently, there are no standard norms for budgetary support for dredging to ports. As a result, some ports get budgetary support, while some fund dredging from their internal resources.

Based on the recommendations of a committee, headed by Planning Commission Member, BK Chaturvedi, ports need to undertake dredging in order to increase the draft to 14 metre in the first phase, and 17 metre in the second phase.

Dredging is capital-intensive and this is important because ports require deeper draft to attract larger vessels.

Dredging is underwater excavation of various materials such as rocks, boulders and sand to create deeper waters so that large ships can navigate. Capital dredging is undertaken to create depth and maintenance dredging is done to maintain certain level of depth.

Now, ports get budgetary support for dredging on a case-by-case basis. The extent of budgetary support varies depending on the needs and financial position of the ports, reports indicate. So, the 50 per cent norm may also mean lower outgo for some ports.

Over the next five years, major ports are expected to undertake an estimated 221 million cubic metres (mcm) of capital dredging and 418 mcm of maintenance dredging.