The Indian Finance Ministry’s reported decision to turn down the Ministry of Shipping’s (MoS) proposal to set up a global port operations company, to invest and acquire stakes in ports and container terminals abroad, India’s dream to globalise its maritime sector seems in abeyance, Daily Shipping Times reported.
The proposed company, Indian Ports Global (IPG), was to be set up on the lines of DP World and Singapore’s PSA International.
The Finance Ministry favours priority to be given to investments in the domestic port sector, which faces challenges in capacity addition and technological advancement, rather than mobilising funds for an expensive global outing, it is reported.
Considering that the country’s major government-backed ports have reserves of about INR 7,500 crore, IPG was proposed to be set up as a 50:50 joint venture, with cash-rich ports and financial institutions pumping in INR 2,500 crore each.
Subsequently, the company had plans to leverage this amount to raise another INR 5,000 crore from the market by issuing tax-free bonds.
While the project was aimed at investing in ports and terminals across the globe, the capital was to be used to buy into strategic ports in Africa, Australia, and regions that corresponded with the country’s current trade links.
The proposed company, Indian Ports Global (IPG), was to be set up on the lines of DP World and Singapore’s PSA International.
The Finance Ministry favours priority to be given to investments in the domestic port sector, which faces challenges in capacity addition and technological advancement, rather than mobilising funds for an expensive global outing, it is reported.
Considering that the country’s major government-backed ports have reserves of about INR 7,500 crore, IPG was proposed to be set up as a 50:50 joint venture, with cash-rich ports and financial institutions pumping in INR 2,500 crore each.
Subsequently, the company had plans to leverage this amount to raise another INR 5,000 crore from the market by issuing tax-free bonds.
While the project was aimed at investing in ports and terminals across the globe, the capital was to be used to buy into strategic ports in Africa, Australia, and regions that corresponded with the country’s current trade links.