The recent security clearances given by the union government to three infrastructure companies in the port sector may enable more private sector participation in port projects, reports suggest.
The union government gave security approval for Adani Ports, Punj Lloyd, and Gammon Infrastructure to participate in port projects. Once given, these clearances are valid for three years. Thus, these firms may participate in future projects that would be awarded by the union shipping ministry.
The ministry has been struggling to complete port projects and managed to accomplish far less than its planned target in earlier years. Lack of private investments was cited as one of the reasons for the delay in implementing port projects in the country.
Private investments are crucial to the success of ports in the country. Major ports have been struggling to add capacity in the past few years owing to lack of private investments and other policy concerns.
The decision to grant clearance to major port operators is a positive move, Anand Sharma, director at Mantrana Maritime Advisory opined. In 2013-14, the shipping ministry aims to award at least 25 port projects worth Rs 30,000 crore.
In a move to streamline the security clearance mechanism, the shipping ministry had said a clearance once received would be valid for three years. Companies cheer the move as now they don’t have to approach the home ministry for each case.
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