Shipping assets worth Rs 12,828 crore will be monetised over the next four years under the Rs 6 lakh crore National Monetisation Pipeline (NMP) announced by Finance Minister Nirmala Sitharaman on Monday.
The monetisation does not involve selling of land and is about monetising brownfield assets.
The shipping assets monetisation pipeline projects will be implemented by the Ministry of Ports, Shipping and Waterways and potential models would be public private partnership (PPP). According to the NMP document released by Sitharaman, the assets considered for monetisation are spread across 9 of the 12 major ports.
"During the NMP period of FY22-25, monetisation value of Rs. 12,828 crore has been considered on account of estimated capex towards identified 31 projects," it said.
Elaborating further, the document said 31 projects have been identified for private sector participation for improved operational efficiency and capacity utilisation of existing port assets. "Key projects include additional berths, mechanisation, development of oil jetty, container jetties, O&M of container terminal, O&M of International cruise terminal and development of marina," it said.
India has a significant sized maritime sector with 12 major and 200+ non-major ports situated along its 7,500 km long coastline and a vast network of navigable waterways.
The document pointed out that the country's maritime sector plays a crucial role in its overall trade and growth, with 95 per cent of the country's trade volume and 65 per cent of the trade value being undertaken through maritime transport.
Port development in India is guided by the flagship Sagarmala programme and the recently unveiled Maritime India Vision 2030, it added.
Sitharaman announced a Rs 6 lakh crore National Monetisation Pipeline that will look to unlock value in infrastructure assets.
Union Budget 2021-22 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.
Towards this, the Budget provided for preparation of a 'National Monetisation Pipeline' of potential brownfield infrastructure assets. NITI Aayog in consultation with infra line ministries has prepared the report on NMP.