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Finance Minister’s target said to be unrealistic

Finance Minister’s target said to be unrealistic
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Industry watchers feel that the target for project implementation given by Finance Minister P Chidambaram to the shipping ministry for 2012-13 is unrealistic.

The finance ministry gave a target of achieving a total investment of Rs 35,000 crore and a capacity addition of 244 million tonne during the year. The shipping ministry has managed to achieve 18 per cent of the targeted investment.

The government, however, feels that by setting a high target it could achieve much more than it could by eyeing a realistic number.

So far in 2012-13, the shipping ministry awarded 26 projects bringing in a capacity augmentation of 114 mn tpa. As many as 20 of these projects have an annual capacity of less than 5 million tonne.

The biggest project awarded this year includes two single-point mooring system for Indian OilÂ’s refinery at the Paradip port. The total cost of the project is estimated at around Rs 1,500 crore with a capacity of 22 mn tpa.

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