The government is contemplating setting up a dedicated financial institution for maritime sector and raising about Rs 15,000 crore by way of bonds to ease flow of funds into the sector, PTI reports.
"We have a plan to raise Rs 15,000 crore through maritime bonds but before that we need a dedicated financial institution for the sector to raise resources," National Shipping Board Chairman P V K Mohan told PTI.
He said the process of consultation to decide on the model of the institution had begun.
"It can be a complete government institution or may be government-private initiative. A financial institution promoted jointly with private might help in fast rollout and implementation," Mohan said.
The government might think of using part of the money available with major port trusts to float the institution, port sources said.
The bonds would be in line with infrastructure bonds and utilised according to priority areas like coastal shipping, ship acquisition or development of port facilities, he said.
Commercial banks in the country are generally averse to funding port and maritime projects because of their long-gestation period which doesn''t allow a suitable repayment schedule.
Investment of Rs 2.87 lakh crore by 2020, is envisaged in the port sector, the growth of which is key to the country''s ambition to increase in foreign trade manifold.
"We have a plan to raise Rs 15,000 crore through maritime bonds but before that we need a dedicated financial institution for the sector to raise resources," National Shipping Board Chairman P V K Mohan told PTI.
He said the process of consultation to decide on the model of the institution had begun.
"It can be a complete government institution or may be government-private initiative. A financial institution promoted jointly with private might help in fast rollout and implementation," Mohan said.
The government might think of using part of the money available with major port trusts to float the institution, port sources said.
The bonds would be in line with infrastructure bonds and utilised according to priority areas like coastal shipping, ship acquisition or development of port facilities, he said.
Commercial banks in the country are generally averse to funding port and maritime projects because of their long-gestation period which doesn''t allow a suitable repayment schedule.
Investment of Rs 2.87 lakh crore by 2020, is envisaged in the port sector, the growth of which is key to the country''s ambition to increase in foreign trade manifold.