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Modi urges global business community to invest in India's maritime sector

Prime Minister Narendra Modi addressing at the Maritime India Summit, in Mumbai on April 14, 2016.
Prime Minister Narendra Modi addressing at the Maritime India Summit, in Mumbai on April 14, 2016.
Prime Minister Narendra Modi today said it was his Government's endeavour to revive and restore India's position of eminence in the maritime sector in the world and called upon the global business community to partner with it to give shape to its process of port-led development. 
 
"Building upon our glorious maritime tradition, we are working hard to achieve new heights in this area," he said in his inaugural address at the Maritime India Summit, 2016 here.
 
Mr. Modi said that, since his Government took over, among other things, it had laid emphasis on building futuristic infrastructure. This included building next generation infrastructure in many sectors with ports, shipping and maritime infrastructure being prominent among them, he said.
 
"In the very early days of our Government, we announced the Sagarmala programme. This is aimed at leveraging our long coastline and natural maritime advantages. It also focuses on promoting port-led development, energizing the coastal economy and infrastructure development in these areas. We particularly want to modernize our ports and integrate them with Special Economic Zones, Port based Smart Cities, Industrial Parks, Warehouses, Logistics Parks and Transport Corridors," he said.
 
Mr. Modi told the gathering that India's vast coastline of 7500 kilometres offered a huge investment opportunity.
 
"Apart from the length of the coastline, India's maritime potential also lies in its strategic location on all major shipping highways. In addition, we have an expansive and productive hinterland, through which flows a network of mighty rivers. Our maritime agenda will complement this ambitious infrastructure plan for the hinterland which is going on in parallel," he said.
 
"I am sure, the long coastline of India along with diverse coastal regions and hard working coastal communities can become an engine of growth of India," he said.
 
Mr. Modi listed the various initiatives taken by the Government to enable the growth of the port and related sectors, including steps to make India a global manufacturing hub and improve the ease of doing business.
 
"We have greatly liberalized the licensing regimes. This also includes the defence sector and ship building therein. We have taken almost sixty per cent of the defence items out of the licensing process. Most of the FDI sectors are now put on automatic approval route," he said.
 
Mr. Modi said shipyards were being given infrastructure status, at par with the ports. Rebate of service tax on coastal shipping has been increased to seventy per cent and customs duty and central excise exemption has been granted on inputs used in shipbuilding, he said.
 
He said a scheme of financial assistance to promote ship building had been approved; customs and central excise duties had been exempted on bunker fuel for Indian flagged container ships; and tax issues of sea farers had been resolved.
 
He said a new company by the name of Indian Port Rail Corporation had been established to focus on the last mile connectivity to ports. The Government had enacted a legislation for declaring 111 waterways as National Waterways. It had also taken up skill development activities aggressively.
 
"The results of our initial efforts are clearly visible: FDI inflows have gone up by 44 per cent since this government took over. In fact, the year 2015-16 has seen the highest ever FDI inflow into India. India’s highest ever quantity of cargo handled by major ports was in 2015. The port efficiency parameters have shown very good improvement. India’s fastest average turnaround time in ports was in 2015," he said.
 
Mr. Modi said that, in the last two years, India's major ports had  added 165 million tonne capacity with record additions each year. He said 94 million tonne capacity was added by these ports in 2015-16 alone which is the highest ever. The traffic in major ports had shown a healthy growth of more than four per cent in the last two years, despite global slowdown, he said.
 
He said the performance of the major ports in the last two years had been remarkable. Operating profit margins, which were declining, have increased, he said.
 
"In 2015-16 alone, the operating profit of the twelve major ports has increased by nearly 6.7 billion rupees. During 2015-16, Kandla Port in Gujarat breached the one hundred million traffic landmark and displayed twenty per cent improvement in efficiency.        Jawaharlal Nehru Port Trust registered a net profit of ten billion rupees helped by a twelve per cent increase in efficiency. 
 
"Our flagship companies like the Shipping Corporation, Dredging Corporation and the Cochin Shipyard have registered higher profits as compared to the previous year. However, this is just the beginning. We want to do more. We are enhancing our own capacities of execution and implementation. The National Perspective Plan of the Sagarmala Programme has been released today.  
 
"During the last two years, major ports have awarded 56 new projects involving an investment of more than 250 billion rupees. This will create an additional port capacity of 317 million tonnes per annum.  Our vision is to increase port capacity from 1400 million tonnes to 3000 million tonnes by 2025. We want to mobilize an investment of one lakh crore, or one trillion rupees, in the port sector to enable this growth. Five new ports are planned to meet the increasing demand of the Exim trade which will rise in proportion with the fast-growing Indian economy. New ports are also being developed by several coastal States of India," he said.
 
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Mr. Modi said the multiple measures to promote coastal shipping, coupled with the anticipated rise in domestic production of coal, were expected to enhance coastal transportation of coal by at least four fold by 2025. 
 
"We are engaging with our immediate and regional neighbours to promote shipping and maritime security. Recently India has signed a Coastal Shipping Agreement with Bangladesh which will be mutually beneficial. India is also engaged in the development of Chahbahar Port in Iran. A special purpose vehicle by the name India Ports Global Limited has been established to take up Maritime Projects overseas," he said.
 
He noed that the Ministry of Shipping was showcasing about 250 projects with investment opportunity in the Maritime Sector. These projects include various infrastructure development opportunities in 12 major ports, projects in eight maritime states and other agencies. Of these, over 100 projects have been identified under the Sagarmala Programme. 
 
"With more than 14,000 kilometers of navigable inland waterways in the country, there is tremendous potential for development in this sector. My Government is committed to integration in infrastructure. We are also committed to creating an enabling environment for investors and to facilitate investments with an open mind," he said.
 
The Prime Minister said all this was being done to benefit the common man and provide employment to the youth. This was particularly being done to empower coastal communities, he said.
 
"Approximately eighteen percent of India’s population lives in 72 coastal districts. It comprises twelve percent of India’s landmass. Therefore, there is a need for holistic and sustainable development of coastal regions and communities. Development of coastal communities especially fishermen requires an integrated approach. As part of the Sagarmala programme, we will adopt a comprehensive approach with focus on capacity building and training, upgrading of technology and for improving physical and social infrastructure. This will be done in collaboration with the coastal states," he said.
 
Mr. Modi said these initiatives would create employment opportunities of approximately ten million jobs over the next ten years. This includes four million direct and six million indirect jobs. 
 
"To broaden livelihood opportunities further, we are planning to deploy modern and sophisticated fishing vessels. This would enable them to harness resources in India’s Exclusive Economic Zone. In addition, we are also focusing on value addition in fisheries, aquaculture and cold chain development.
 
"The Port Sector in India is a good mix of Private and Public Ports, with both contributing to the growth of the sector. The PPP model of development has been quite successful in this sector and has helped in bringing latest technology and best practices. Private Ports have been growing at a very healthy pace and have nearly doubled their capacity in the last 5 years. They handle around 45 per cent of the total cargo. Most of these ports are new, with modern facilities and can match the best international ports in terms of performance and infrastructure," he said.
 
"India has had a glorious maritime history. We are on the path of shaping an even better maritime future. The maritime sector not only creates and facilitates economic activities; it also connects countries and civilizations. Moreover, it is the cleanest and cheapest carrier of global trade. Investing in maritime sector is not only investing in one’s own future; but in the future of the planet and that of coming generations. However, in this sector, no country can achieve the desired results in isolation. Nations have to collaborate to realize this potential and to overcome challenges in this sector. The objective of this Summit is to provide a platform and forum for such cooperation.
 
"To conclude, I would like to say that: This is the right time to come to India. It is even better to come through the sea route. The Indian ship is well equipped for a long haul. Don’t miss it. Missing it means missing a pleasant journey and a great destination.
 
"Once you are here, I assure you that I will personally hold your hands to see that your berthing is safe, secure and satisfactory,"he added.
 
NNN
 
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