India’s port capacity getting a boost on the back of IIFCL

Yesterday, the state owned India Infrastructure Finance Company Ltd. (IIFCL) announced that it has funded infrastructure projects for 20 ports, amounting to INR 8,244 crore. The infra development fund booster has created an additional capacity of 836 MT per year. India’s total port capacity is roughly 2,600 MT per year, out of which, the 12 major ports handle around 1,600 MT cargo per year (as of March 2022).

“IIFCL, till date, has provided financial assistance of ₹8,244 crore to the port sector. Of this, ₹787 crore was sanctioned to various terminals in 5 major ports and ₹7,465 crore was sanctioned to 15 minor port projects. Most of the projects are operational and presently 3 non major ports are under construction”

P R Jaishankar, Managing Director, IIFCL

Jaishankar acknowledged the shipping sector’s potential to improve connectivity, bring down logistics costs, and provide a boost to the economy. He also said that with investment in three upcoming ports including Ramyapatnam and Bhavanapadu, the capacity would touch 1,000 MTPA with these ports going on stream in a couple of years. Ramayapatnam Port in Andhra Pradesh is expected to commence operations next year in December with four berths with 34 MTPA capacity.

India Infrastructure Finance Company Ltd (IIFCL) has been extending its financial support to many strategic port projects, including the Paradip Port, Essar Vizag port, Tuticorin, Krishnapatnam, Karaikal, i.e. 5 of India’s 12 major ports, and 15 other non-major ports. So far, it has sanctioned around 650 projects with a total outlay of INR 11.5 lakh crore.

“The ongoing decade could well be a golden decade for the sector with positive government policy interventions, private sector capital infusion, and holistic and inclusive development with efficiency, job creation and innovation,” he said.

The total capital expenditure by both the Centre and state governments in the port sector between FY20 and FY25 is estimated at INR 1,21,194 crore under the National Infrastructure Pipeline.

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