India is looking to raise capital of US$7.6bn to increase the handling capacity of its major ports to as much as 1.46bn tonnes by 2017.
According to a report by shipping news provider Port Strategy, the government expects around two thirds of capital investment to come from the private sector. The ports referred to are currently government owned.
The move to increase port capacity was likely being driven by unfavourable comparisons with other Asian ports and privately operated ports in the country, the news source reported.
Restructuring of how the ports were administered to allow private investment would necessitate an amendment to the Major Port Act, Indian minister of state for shipping Mukul Roy told local media.
Mr Roy said this would allow ports to be run as companies, which would gain from “a professional management, which will have greater financial and operational autonomy”.
Any moves to corporatize the ports would be opposed by relevant trade unions, Port Strategy reported.
The Indian government has also recently announced plans to create seven new deep-water facilities.
