NEW DELHI, May 23: Faced with a fresh demand for funds, the ministry of surface transport (MoST) has decided to revive Central loan assistance to states for development of minor ports. It has earmarked an outlay of Rs 200 crore for the development of port-related infrastructure to encourage private investments. The scheme had been discontinued in 1979-80.

MoST sources said the revival of the loan assistance, which was suggested by the working group for port sector for the Ninth Five-Year Plan (1997-2002), had been approved by the Planning Commission. The need to develop minor ports is because of their low capacity and structural problems.

Of a total of 163 minor/intermediate ports, only 139 are operable at present. The traffic handled by these minor ports in 1994-95 stood at 20.30 million tonnes, which is barely 10 % of the total traffic handled by all Indian ports. Of this, ports in Gujarat alone accounts for 70 % of the traffic.The traffic level is low mainly because most of the minor ports are lighteragae ports where the ships cannot come alongside berths but have to anchor far away from shore and transfer their cargo through lighters. y

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