India sets up new department to facilitate port and maritime investment

India has allocated less than $4.4 million of public funds for infrastructure development across its major ports for fiscal years 2016 and 2017. At the same time, the country is accelerating its drive for private investment with initiatives including setting up a new department to facilitate private investment in port and maritime-related projects.

Just Rs 29 crore ($4.36 million) is so far allocated from the public budget for investment in infrastructure across all 12 public port trusts for fiscal 2016 and 2017, minister of state for shipping, Pon Radhakrishnan said in a written response to a question posed in the Rajya Sabha, but the recently established Investment Facilitation Cell will channel and facilitate private investment in the ports and maritime sector.

The more than $4 million in funding is far below levels of public funds put into major ports in recent years. From fiscal 2012 and 2013 to fiscal 2015 and 2016, a total of Rs. 646.6 crore of public funds was invested in the 12 ports, including more than Rs. 120 crore in fiscal 2015 and 2016 alone.

It is not clear whether more public funds will be made available for port projects during the year. What is clear is that the government is putting a much bigger emphasis on attracting private funds to drive its highly ambitious port and maritime development plans.