Indian Economy - News & Updates - Archive

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Mumbai sea-link bridge gets connected​

VIDEO: Mumbai sea-link bridge gets connected-News-Videos-The Times of India

 

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First eight days of IPL-2 record 88 m viewership​

Thursday, Apr 30, 2009

Mumbai: The first 8 days of IPL-2 have recorded a cumulative viewership of 88 million with an average TVR of 4.61 at an all- India level, according to TAM.

Cumulative viewership is the total number of viewers who have watched the matches for at least a minute. With varying TVRs across the first 8 days, it was the single match played between Royal Challengers and Chennai Super Kings on April 20 which recorded the highest TVR at 5.56 (with 34 million viewers) while the lowest TVR was at 3.38 (20 million viewers) for the match played between Kings X1 Punjab and Knight Riders (the day the second match was rained out). The match on April 23 between Rajasthan Royals and Knight Riders, which had the super over, also recorded a relatively high TVR at 5.43 as reported by TAM.

Meanwhile, according to aMap, day 11 (28th April) brought with it a prime time clash between the Delhi Daredevils and reigning champs Rajasthan Royals with a TVR of 4.1. As Yusuf Pathan of Rajasthan Royals unleashed his batting on the unsuspecting Delhi team, the ratings (top 6 metros, C&S15+) of 4.1 per cent, stayed true to the trend that has been set by the prime time matches of IPL 2, over the past few days.

This figure was marginally lower than last year’s figure of 4.4 per cent for day 11.

However, net reach per cent (top 6 metros, C&S4+) was higher at 14.4 per cent as opposed to 13.6 per cent.

According to Mr Prasanth Kumar, Managing Partner, Group M, CTG (Central Trading Group), “Clients who have invested behind IPL-2 have paid for an overall package and have made decisions taking into account the varying viewership during the tournament.”

 

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Exports to US fell by 11.5 pc since Oct: FICCI​

30 Apr 2009,

NEW DELHI: India's exports to the US, the single largest market for local exporters, dropped 11.5% during October'08-February'09, as per a study
by industry chamber FICCI. The study also revealed that India has lagged behind other competing countries such as China, South Korea and Brazil, that export to the US.

This has come about even as US-bound exports from Ireland, Indonesia and Vietnam have grown in the range of 3-12% during the same five month period. Although exports from China, Korea and Brazil have also dropped, India has fared the worst, as per FICCI. But India outperformed Malaysia, Taiwan, Thailand, Russia and Singapore for the period.

In the first two months of 2009, Indian exports to the US dropped 23%, much more than the fourth quarter of 2008, indicating a worsening situation. In the previous quarter (July-September 2008) exports actually grew 14%.

The sectors worst affected by the decline in exports to US include gems & jewellery, textiles & apparel, pharmaceuticals, auto & auto components, marine products and non-ferrous metals. In contrast, chemicals, machinery, iron & steel, instruments, leather, plastics, agro-items and processed food saw higher exports.

India's exports of machinery & parts grew 19% to $1.2 billion against a 15.4% decline in US global imports of this category. Similarly chemicals export increased over 14% to $974 million even as US chemical imports from all countries put together declined 1.5% for the period. Exports of iron & steel from India matched the 14% rise in US global imports of the products.

The FICCI study observed that in two categories India has lost some share of US imports to competitor countries. In textiles & apparel, Bangladesh and Vietnam have expanded their exports 18% and 9% respectively when Indian exports fell 6.5%. Similarly, India's pharmaceuticals exports declined 37% at a time when such exports from China, Israel and South Korea moved up 27-41%.

 

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OVL, IOC to invest $4 bn in Iran gas field​

New Delhi May 1, 2009,

ONGC Videsh Ltd and its partners Indian Oil Corp and Oil India Ltd are likely to invest about $4 billion to start production from a massive gas field they discovered in offshore Iran, in the next 3-4 years.

"Iran had in September 2008 approved the commerciality of the discovery and the three partners are now in the process of preparing a development plan. Investments may be in the range of $4 billion," an ONGC official said.

The discovery, which was subsequently named Farzad gas field, has in place reserves of up to 21.68 trillion cubic feet (Tcf), of which recoverable reserves may be 12.8 Tcf.

The Indian firm want to liquefy the gas and ship it to India in the form of liquefied natural gas. "The oil and gas will belong to the National Iranian Oil Co (NIOC). They have the marketing rights and we have requested them to allocate the gas to us for converting it into LNG," he said.

OVL, which holds 40% interest and is the operator of the block, has also submitted a feasibility report for the one billion barrel oil discovery it made in 2006.

Oil was found in the BB structure in 2006, the discovery has been named Binaloud."Feasibility report of the oilfield has been submitted to the National Iranian Oil Company, Iran, on November 26, 2008," he said.

 

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India's exports grow by 3.4% to $169 bn last fiscal; miss target​

1 May 2009,

NEW DELHI: India's merchandise exports fell short of the target set for the previous fiscal and were valued at $168.7 billion, up merely 3.4 per cent over $163.13 billion in the year before, latest trade data showed on Friday.

The government had set a target of $200 billion, which could not materialise due to the general downturn in the global economy and recession in some of the country's largest trading partners such as the US and Britain.

Even the revised export target of $175 billion proved elusive. The country had logged an export growth of 23 per cent during 2007-08 at $155.51 billion.

In fact, the exports during March this year were valued at $11.52 billion, which was 33.3 per cent lower than the $17.25 billion registered during the like month of the previous year, the commerce ministry data showed.

The cumulative value of imports for 2008-09 was $287.76 billion, up 14.3 per cent over $25.17 billion registered the year before. In March, imports declined 34 per cent to $15.56 billion from $23.57 billion.

Import of oil during 2008-09 was valued at $93.18 billion, up 16.9 per cent from $79.72 billion in the like period of the previous fiscal. In March, the imports totalled $3.81 billion, down 58.1 per cent from $9.08 billion in the corresponding month the previous year.

Accordingly, the country's trade deficit has been estimated at $119.06 billion, as against $88.52 billion during the fiscal year ended March 31, 2008.

 

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TATA to launch Jaguar & Land Rover in India by June​

1 May 2009,

MUMBAI: Tata Motors-owned British luxury car maker Jaguar Land Rover (JLR) is set to launch its premium brands in the Indian market next month, the company said in a statement on Friday.

"We are delighted to be formally entering the Indian market, an economy which is still growing appreciably, and able to offer our premium products to a whole new group of customers," a JLR statement said.

"It is an important strategic move for Jaguar Land Rover and will enable us to realise our competitive potential in this significant market," JLR chief executive David Smith said in the statement.

In India the JLR's first showroom will open at Mumbai's Ceejay House in Worli in June. The import and sales will be managed by Tata Motors' newly-formed luxury car division.

Jaguar and Land Rover were acquired by India's Tata Motors from American carmaker Ford last March for 1.7 billion pounds (about $2.5 billion)

The luxury cars will be imported by Tata Motors, which is also the manufacturer of the world's cheapest car - Nano, and will be sold through its sales and dealership network.

The initial lineup will include the Jaguar XF, Discovery and Range Rover models. The moves comes as a logical step for the automaker to tap into India's growing luxury car market.

"This is a natural move for both businesses and will allow Jaguar and Land Rover to establish a strong and deserved presence in India. We are very pleased to provide the opportunity for Indian customers to access the premium products for the first time," Tata Motors managing director Ravi Kant said in a statement.

The India debut comes at a time when JLR, with production facilities at Halewood, Solihull and Castle Bromwich in Britain, has been hit by the recession in Europe and is seeking a 800 million pound rescue package from the British government.

The company, which has a workforce of over 15,000, has retrenched 450 workers this year and is looking at 198 voluntary retirements in its managerial team to cut costs.

 

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PMEAC says India will grow at least 6.5 per cent in FY10​

1 May 2009,

NEW DELHI: Counting on the general elections to spur the sagging economy, the Prime Minister's economic advisory panel has said it expects the country to grow at 6.5 to over 7 per cent in 2009-10.

"I expect the economy to grow by 6.5 per cent to 7 plus per cent in the current fiscal year," the Prime Minister's Economic Advisory Council (PMEAC) Chairman, Suresh Tendulkar, told reporters.

Earlier the Council's outlook was 7-7.5 per cent for the year. Even the revised forecast is yet quite optimistic compared to other agencies.

"The election expenditure will act as a big stimulus by resulting in additional purchasing power," he said, adding that the lower interest rate regime has already kicked in, which will help growth.

A equally optimistic projection has come from the Chief Economic Adviser to the Finance Ministry, Arvind Virmani, who expects the country's economy to grow 6.5-7.5 per cent.

Others who gave high forecasts include economic think-tank National Council of Applied Economic Research (6.5 per cent) and credit rating agency ICRA (6.5-7.5 per cent).

 

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Exports down 33.3%, most in 14 years

Weak demand from developed nations aggravating woes; imports also fell for third month in a row

India’s merchandise exports in March declined for the sixth successive month on weak external demand from developed economies, denting hopes of an early economic revival.
Exports which contribute around 16% to India’s gross domestic product (GDP), fell by 33.3% in March to $11.5 billion (Rs57,730 crore today), the sharpest fall since April 1995. Exports for the fiscal year 2008-09 touched $168.7 billion, recording a 3.4% growth in dollar terms and falling short of the government’s revised target of $170 billion, according to data released by the ministry of commerce and industry on Friday.
Imports in March also declined for the third successive month. The decline, by 34% to $15.6 billion, was led by lower crude oil prices and weakening domestic demand. In fiscal year 2008-09, imports grew 14.3% to touch $287.7 billion.

Exports down 33.3%, most in 14 years - Home - livemint.com

With all this news we are still going to register 5.5- 6% GDP growth. Looks like the domestic consumption is taking the slack from the exports.

 

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Indian stocks 2nd best performers among Bric in April

Indian stocks have provided a return of nearly 19.54% in April, while China and Brazilian markets have given 10.87% and 18.89% respectively

New Delhi: Following a sharp recovery in the equity markets, Indian stocks have emerged as the second best performers as compared to their peers in three other Bric nations - Brazil, Russia and China, giving close to 20% return in April.
According to an analysis of MSCI Barra indices, a measure of returns from various stock markets across the world for foreign investors, Indian stocks have given the second highest return after Russia among the four Bric countries during last month.

Indian stocks have provided a return of nearly 19.54% in April, while China and Brazilian markets have given 10.87% and 18.89% respectively.
Indian stocks have even outperformed the MSCI Barra’s emerging market index, which includes all the developing world markets, giving returns to foreign investors to the tune of 16.28% in the month.
After losing nearly 50% in the past one year, Indian stocks have gained close to 18% in the first four months.

Indian stocks 2nd best performers among Bric in April - Money Matters - livemint.com

We could see some sharp fall in case the election results do not give a clear picture.

 

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Indian pharma emerges big player in Japan​

Mumbai May 2, 2009,

Leading Indian drug makers such as Ranbaxy, Lupin, Zydus Cadila and Dishman, which forayed into Japan in the past three years, have emerged as important players in the generic or copycat drug business of patented medicines in that market, the second largest in the world.

The Japanese drug market, second after the US with a size of $74 billion, has a small generic segment, worth 5 per cent of the total in value terms and 17 per cent in volume terms.

While only three of the world’s top 15 generic drug makers — Mylan Laboratories and Hospira of the US and Novartis’ generic arm Sandoz — could corner some share of this market, Indian companies have established a strong presence.

According to analysts, Indian players have already cornered about 10-15 per cent of the $3 billion generic market in Japan, which is estimated to grow manifold in the coming years due to health reforms.

“The current size of the generic market in Japan is very small, but now the Japanese government is encouraging doctors to prescribe generics to cut healthcare costs. This will help Indian companies, which entered that market early to tap the opportunity,” said Ranjit Kapadia, a senior industry analyst.

Most of the 50-plus generic drug makers in Japan are small-scale and medium-scale companies and about 10 are large-scale players.

India’s largest drug maker, Ranbaxy Laboratories, was the first Indian company to test the Japanese waters through a 50:50 joint venture with a local company, Nippon Chemiphar, in 2005. Ranbaxy has five products in the market, led by voglibose, clarithromycin and amlodipine, in therapeutic segments such as diabetes, anti-infectives, anti-allergics, anti-fungals and hypotensives. Of this, voglibose and clarithromycin are among the top-selling generic brands in Japan. Ranbaxy earned about $28 million revenue from that market in 2007.

However, the company severed its ties with Nippon last year following the acquisition of Ranbaxy by Japanese drug major Daiichi Sankyo.

In October 2007, Lupin acquired Kyowa Pharmaceuticals to enter Japan. Sales of Kyowa have grown over 21 per cent during the past year and it ranks as the eighth-largest generic player in Japan, according to Kamal K Sharma, managing director of Lupin.

“It is very difficult to establish presence in the Japanese market, as manufacturing and other quality norms are very stringent. Therefore, it is necessary to have a manufacturing base in that country,” he said in a recent interview with Business Standard.

Industry sources said the future for generic drugs in Japan looked promising. To reduce healthcare costs and increase generic penetration, the Japanese Ministry of Health had announced a programme two years ago to raise the share of generic drugs from 17 per cent to more than 30 per cent by 2012. The government has introduced a generic substitution system, in which pharmacists are allowed to substitute generic drugs if doctors do not specify that a brand name drug is to be dispensed.

Besides, since most pharmacists are currently reluctant to substitute generic drugs for branded ones because of lower profits in the generic segment, pharmacists are being offered incentives if they stock and dispense a certain volume of generic drugs.

Zydus Cadila entered the Japanese market in 2006 and followed by acquiring Tokyo-based, privately-held Nippon Universal Pharmaceutical, which reaches more than 4,000 hospitals and clinics across the country. Its plan in Japan is to feed at least five to six products every year to the portfolio and build a basket of 40-50 products over the next few years.

Another Ahmedabad-based company, Dishman Pharmaceuticals and Chemicals, floated a joint venture, Dishman Japan, in association with Azzurro Corporation, a 30-year-old marketing firm known well in the Japanese pharmaceutical market.

With generic margins eroding in the US and Europe, Indian drug makers are increasingly looking at the Japanese market. Many large and medium-level Indian companies are looking there in a big way. These include major players such as Dr Reddy's Laboratories and Biocon.

 

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Robust growth in auto sales for fifth straight month​

2 May 2009,

NEW DELHI / MUMBAI: Car and two-wheeler sales saw the fifth straight month of growth in April, buttressing evidence that the recovery was no flash in the pan and providing increasingly rare good news for a sector reeling under the threat of global bankruptcies.

Last month saw market leaders such as Maruti Suzuki, Hyundai Motors, Mahindra & Mahindra and Honda Seil better their performance over the corresponding month of the previous year, helped by the government’s stimulus packages, cuts in lending rates and as elections boosted demand for vehicles, especially jeeps and SUVs.

“The sentiment has improved and the Nano is likely to give a fresh lease to auto sales. But demand in the coming months will be determined by the policies of the new government,” said Abdul Majeed, analyst with PriceWaterhouse.

Maruti Suzuki, which makes every second car sold in India did particularly well, with a 9% year-on-year growth in April, while close competitor Hyundai Motors sold 4% more this year.

Mahindra & Mahindra (M&M), with its array of SUVs and mini-trucks, saw sales jump 36%, as elections boosted demand for its products tailor-made for the rough terrain of rural India.

Surging rural demand also helped two-wheeler maker Hero Honda post a 29% increase in sales. The company, India’s and also the world’s largest two-wheeler maker, sold 3.70 lakh units in April, up 29% year-on-year. Hero Honda’s senior vice president for sales and marketing Anil Dua said he expected the trend to continue in the coming months.

Its competitor Yamaha Motors India sold posted a 48% increase in sales to 15,120 units, thanks to high demand for its 150-cc bikes, while TVS Motors’ sales rose 3% to 1.13 lakh units, with light scooters driving demand in small cities and towns.

Among car makers, Maruti’s success was mainly centered on its best-selling sedans SX4 and Dzire. The elections boosted demand for its utility vehicles Gypsy and Grand Vitara, with their sales jumping 10-fold to 905 vehicles in April.

According to Maruti’s executive officer for marketing & sales Mayank Pareek, the company, on an average, has gained 11% in sales in the past four months. Sales will rise further once Maruti’s premium hatchback Ritz is launched, he said.

Two auto analysts ET spoke to said new launches such as Ritz, Honda’s premium hatchback Jazz and Fiat’s mid-sized hatchback Grande Punto will fuel auto growth further this year.

Honda Siel Cars India (HSCI) posted a 7.5% increase in sales to 3,656 cars during April.

M&M, which saw its sales double in April from the monthly average of 10,000 units in the past fiscal year, attributed it directly to the election demand. The company’s chief of operations for automotive sector, Rajesh Jejurikar, said M&M’s recently-launched Xylo posted its highest monthly sales of 3,509 units in April. But its sedan Logan continued to perform poorly, with sales more than halving to 550 cars.

 

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Inflows hit $1.57 bn in April; beats traditional favorites Korea, Japan, Taiwan and Philippines​

MUMBAI: After a 15-month hiatus, India once again seems to be showing up on the investment radar of foreign portfolio investors. The country has pocketed equity investments worth around Rs 7,000 crore in April, ahead of traditional favourites like Korea, Japan, Taiwan and Philippines.

Furthermore, market participants back home are not expecting any major reversal in these flows immediately, unless the risk perception about emerging market equities deteriorates.

“Global liquidity is improving for sure. This is prompting FIIs to rebalance their portfolios; we expect capital inflows to continue for some time,” said Sundaram BNP Paribas Mutual Fund equities head Satish Ramanathan.

Compared to India, which has pulled in $1.57 billion of foreign money, other emerging markets such as Indonesia, the Philippines, Taiwan and South Korea have bagged $18 million, $531 million, $632 million and $7 million, respectively. Japan, which is considered a defensive market in Asia, has seen a capital outflow worth $521 million.

“Our recent wealth manager survey states that China and India will remain the most attractive investment destination in Asia. Respondents were not really favouring markets like South Korea, which is expected to yield negative returns,” Barclays Capital managing director and investor solution head Peter Hu told ET.

According to Mr Hu, most overseas wealth managers who participated in the survey are expecting to increase equity investments in emerging Asia over the next six months.

Though numbers are not available, market experts hold the view that China has been the major beneficiary of increased global liquidity over the past two months. Popular estimates state that China would have drawn in twice the amount that India has attracted by way of portfolio inflows.

“India is a very huge market when compared to Indonesia or Taiwan; therefore it leaves no scope for comparison. Very positively, India has been witnessing good inflows, but a good portion of it is quick money,” said Ambit Capital CEO (equities) Andrew Holland.

“For now, foreign institutional investors are hurriedly deploying money in emerging equities as they have been maintaining high cash levels for some time. All depends on global markets and the outcome of domestic elections for such a trend (of inflows) to continue,” Mr Holland added.

“A lot of hedge funds — who were underweight on local shares earlier — are now covering up their India positions. A few long-term investors are also buying select fair-value scrips. The lowering of interest rates has instilled confidence in foreign investors who feel the government will not compromise on growth at any cost,” said Morgan Stanley Investment Management CEO Anthony Heredia.

According to experts, though foreign investors do not really consider foreign exchange rates while investing in equities, the gradual weakening of rupee against dollar has helped foreign investors to buy more Indian shares at lesser dollar value.

 

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India Inc’s profitability improves in March quarter​

Saturday, May 02, 2009

Corporate India’s net profits in the fourth quarter were slightly better compared with the immediately preceding quarter.

A performance review of quarterly results of a large sample of 715 companies (excluding banks and financial institutions) in the listed universe reveals this.

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For the quarter ended March 2009, sales declined by 1.4 per cent, while net profits were higher by 23 per cent, compared with the December 2008 quarter.

This may well be the early signs of a turnaround in corporate fortunes, although seasonal (year-on-year), rather than the sequential, comparisons are the norm.

Note that in the quarter ended December 2008, sales had declined by 7.7 per cent while adjusted net profits were lower by 14 per cent compared with the September quarter.

Cost cutting

Cost savings appear to have been a key factor that aided profit growth despite faltering sales.

Indian companies have managed to contain costs across various fronts. While the effect of falling commodity prices began to be visible in the raw material costs of December quarter itself, power and fuel costs have also seen a significant decline in the latest March quarter, even as material costs continued to trend down. Cement companies have been the major beneficiaries of this trend.

A good number of others, especially IT companies such as Wipro, Tech Mahindra and Polaris Software, witnessed a sharp decline in their employee expenses/selling and administrative expenses (S&A).

Overall, while raw material costs declined by a marginal 2.2 per cent and S&A expense dropped by 7.3 per cent, power and fuel dipped by a significant 19 per cent compared to December.

Lower costs propped up sequential operating profits by 23 per cent in the March quarter compared with a dip of 18 per cent witnessed last quarter. The expansion in operating profits as well as decline in interest costs helped net profit growth.

Net interest cost for the quarter was lower by 20 per cent compared with December on the back of a softening interest rate regime.

However, this picture could well change as the results of companies from sectors with high leverage are yet to be published.

It may be noted that on a year-on year basis, the March quarter numbers remained sedate with a 0.1 per cent decline in sales with net profits lower by 2.2 per cent.

A caveat is in order.

For a majority of listed companies, March 31 is also the last date for the close of the financial year and hence, the results season stretches until June 30 with companies preferring to disclose audited results a little later rather than unaudited ones. Also, a number of companies from sectors such as metals, engineering and real estate are yet to announce their results.

 

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CII projects 6.1-6.5% GDP growth this fiscal​

Sunday, May 03, 2009

NEW DELHI: Even as the Indian economy witnessed a considerable slowdown in the second half of 2008-09 in the wake of the global meltdown coupled with a cyclical domestic downturn, the Confederation of Indian Industry (CII) expects a recovery in GDP (gross domestic product) growth to 6.1-6.5 per cent in the current fiscal.

According to a report on the ‘State of the Economy’ released here, the apex chamber has factored in a base-case scenario GDP growth of 6.1 per cent in 2009-10 which is to be driven mainly by the decline in interest rates, moderation in the prices of essentials such as food and fuel and reduction in indirect tax rates.

Alongside, this scenario has factored in sectoral growth rates of 2.8-3 per cent in agriculture, 5-5.5 per cent in industry and 7.5-8 per in services. Rural demand has also remained strong in view of the good performance of the farm sector. “The fact that rural demand remains unaffected by global developments is a source of strength for the Indian economy,” CII Director General Chandrajit Banerjee said.

A more decisive recovery, the report said, would be possible through further monetary easing by cutting the repo and the reverse repo rates by at least 50 basis points, implementing large infrastructure projects and reviving confidence by ensuring a business-friendly environment. If these revival measures are implemented, the GDP growth during 2009-10 could be higher at 6.5 per cent. An analysis of the financial performance of 324 companies (173 in manufacturing and 151 in the services sector) for the quarter ended March 2009 revealed that there has been a slowdown in sales growth and contraction in net profits during the period. Net sales grew 8.7 per cent during the fourth quarter last fiscal as compared to a growth of 23.7 per cent in the previous quarter. The moderation in sales growth, the report said, has been accompanied by a similar moderation in raw material costs, reflecting the decline in global commodity prices. As a result, net profits of the sample companies contracted by one per cent during the last quarter of 2008-09, marking a slight improvement when compared to the contraction of 2.4 per cent in the previous quarter.

The chamber also pointed out that at a time when the global economy and global trade are projected to contract, it would be extremely important to maintain countercyclical fiscal and monetary policy measures. As the drivers of economic growth have to come from domestic sources, the Government has to maintain higher spending, especially in creation of public assets, while monetary policy should be supportive. “Any pressure on interest rates to rise at this juncture will crowd out private spending,” Mr. Banerjee said.

Capital inflows

The global financial turmoil, the report pointed out, also resulted in a sharp decline in capital inflows. During April-December 2008, while the balance of payments ran a deficit of $20.4 billion, the country’s foreign exchange reserves declined by $57.4 billion during the fiscal. This decline has been somewhat halted since March 2009, reflecting some revival in capital flows. To guard against possible downturns in future, policies need to be in place to ensure that India remains an attractive investment destination and particularly conducive to large FDI (foreign direct investment) inflows, it said.

 

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Vizag Port to double cargo handling capacity from 62 million tonnes to 125 million tonnes by 2012​

Sunday, May 03, 2009

VISAKHAPATNAM: With the help of private investors, Visakhapatnam Port Trust (VPT) will enhance its cargo handling capacity from 62 million tonnes to 125 million tonnes by 2012.

The capacity increase through modernisation of existing facilities and creation of new berths would be done with a total investment of Rs. 2,600 crore, Port Chairman Ajeya Kallam told reporters here on Saturday.

Of the Rs. 2,600 crore, the port would invest Rs. 1,200 crore from internal accruals. To a question, he ruled out the possibility of raising a part of the investment from the market.

The port, which is hit along with other major ports due to global meltdown and the challenge posed by the launch of operations in its neighbourhood by Gangavaram Port, is in the process of developing two berths on BOT (build-operate-transfer) basis, mechanisation of coal handling at general cargo berth and mechanised fertilizer handling at EQ-7 berth, upgrading outer harbour to handle two lakh dwt ships and Phase-II deepening of inner harbour entrance channel to cater to 12.5 metre draft vessels.

Tenders are now under evaluation for strengthening five berths in the inner harbour.

Techno-economic study for developing the east docks is being entrusted to Indian Ports Association. Proposal for development of WQ-7 and 8 berths, including mechanisation, is under process.

Mr. Kallam said the port was taking up eight projects under public-private parnership (PPP) mode and expressed the hope that it could handle a throughput of at least 85 million tonnes by 2012 by creating world-class facilities.

Performance

On its performance during the just concluded financial year, he said it could finish second after Kandla Port by handling 63.90 million tonnes as against 64.59 million tonnes in the previous year.

The stagnation in growth is attributed to recession, shift in part of trans-shipment cargo to Paradip following commissioning of pipeline up to Haldia, fall in iron ore traffic to China and diversion of coking coal and other bulk traffic to Gangavaram Port on ‘economic considerations.’

To a question, he said the port was commissioning a study by the Kolkata-based institute on finances involved in the shifting of fishing harbour to another area and make use of the vacated space for creating additional facilities for the port. “Even if found viable, its implementation will take a long time due to the requirement of about Rs. 600-800 crore,” he said.