India Crypto Exchange

Best Bitcoin Trading Platform

Government roping in multilateral agencies for Rs 3.5 lakh crore Sagarmala project

Government roping in multilateral agencies for Rs 3.5 lakh crore Sagarmala project

HYDERABAD: Shipping ministry is roping in global multilateral agencies to extend a helping hand to entrepreneurs looking to explore Rs 3.5 lakh-crore of investment opportunities under the Sagarmala project, which was aimed at port-led development along 7,500-km coastline. Devendra Kumar Rai, director at the ministry of shipping, said Sagarmala Development Company, with an equity base of Rs 1,000 crore, would chip in for investments and viability gap funding to help entrepreneurs achieve viable returns on their investments.

Further, Rai said that the company was also seeking the support of Asian Development Bank and other multilateral agencies for program loans to various initiatives under the Sagarmala project.

He was interacting with a group of entrepreneurs in Hyderabad on Thursday as part of a road show for the Maritime India Summit, scheduled for April 14 in Mumbai.

Announcing that the draft National Perspective Plan that consists of a comprehensive and integrated plan for the Sagarmala would be kept in public domain shortly , Rai sought opinions and advices of the stakeholders towards achieving effective implementation of the port-led development.

The investment opportunities for the entrepreneurs include setting up of greenfield seaports, modernisation of existing ports, augmenting cargo handling capacities, harbours, dry ports, coastal economic zones, lastmile port connectivity through rail and road, container freight stations and inland container depots.

Admitting that not all the projects being contemplated under the Sagarmala project would offer attractive returns on investments, Rai said, “The shipping ministry views that unless there is at least 13 per cent IRR, no private investor would come forward to invest.”

While all the projects involving Rs 3.5 lakh-crore of investments were open to private participation, he said, the rate of return on investment would decide the financing models.

To address the issue of not so attractive returns, the ministry would encourage some projects under the public-private partnership model and even extend the viability gap funding (VGF) up to 40 per cent of the project cost to turn the projects viable, Rai said.

MT Krishna Babu, chairman of Visakhapatnam Port Trust, said various development projects will be thrown open for private participation. “The five greenfield ports alone would involve investments of around Rs 25,000 crore each in phases.” Babu said it will mobilise funds from government and global agencies like ADB and JICA and decide on the nature of funding to the unviable projects ­ whether equity or VGF.

0 0 votes
Notify of
0 评论
Inline Feedbacks
View all comments