abhishreshthaa
Abhijeet S
GOVERNMENT POLICIES
The Government of India has studied various strategies adopted by ports world-wide to address similar issues facing ports in India.
The government envisages commercialisation/ privatisation/ modernisation of major existing ports. These are expected to result in technological upgrades and overall improvement of performance levels, of the ports.
The Government has announced a series of measures to promote foreign investment in the port sector.
Issued guidelines for private/foreign participation that permits formation of joint ventures or foreign collaboration for setting up port facilities.
100 percent foreign investment is permitted for construction and maintenance of ports and harbours and in projects providing support services to water transport.
Private sector is allowed to set up captive facilities.
The government is offering various fiscal incentives to private investors; for example, a 10-year tax holiday in the port development, operation and maintenance. Investors in inland waterways and inland ports are also entitled to these incentives.
FDI upto 51% is allowed on automatic basis in support services like operation and maintenance of piers and loading and discharging of vessels.
Upto 100% FDI under automatic route is permitted in projects for vehicular tunnels, ports and harbours.
The BOT model will generally be used for private sector participation with the assets reverting back to the port after the concession period.
Major ports have been permitted to form joint ventures with foreign ports, minor ports and other companies to attract new technology, better management practices, and implementation of development schemes and creation of optimal port infrastructure.
Inputs and concessional import duty allowed with liberalized trade policy.
The process of phased corporatisation has been initiated for the major ports.
The Government of India has studied various strategies adopted by ports world-wide to address similar issues facing ports in India.
The government envisages commercialisation/ privatisation/ modernisation of major existing ports. These are expected to result in technological upgrades and overall improvement of performance levels, of the ports.
The Government has announced a series of measures to promote foreign investment in the port sector.
Issued guidelines for private/foreign participation that permits formation of joint ventures or foreign collaboration for setting up port facilities.
100 percent foreign investment is permitted for construction and maintenance of ports and harbours and in projects providing support services to water transport.
Private sector is allowed to set up captive facilities.
The government is offering various fiscal incentives to private investors; for example, a 10-year tax holiday in the port development, operation and maintenance. Investors in inland waterways and inland ports are also entitled to these incentives.
FDI upto 51% is allowed on automatic basis in support services like operation and maintenance of piers and loading and discharging of vessels.
Upto 100% FDI under automatic route is permitted in projects for vehicular tunnels, ports and harbours.
The BOT model will generally be used for private sector participation with the assets reverting back to the port after the concession period.
Major ports have been permitted to form joint ventures with foreign ports, minor ports and other companies to attract new technology, better management practices, and implementation of development schemes and creation of optimal port infrastructure.
Inputs and concessional import duty allowed with liberalized trade policy.
The process of phased corporatisation has been initiated for the major ports.