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Union Minister Shri Nitin Gadkari has called for establishing a dedicated financing platform for maritime projects, saying it would boost economic growth and job creation. Speaking at a recent event, he noted that India's logistics costs may fall to around 9% by December due to road infrastructure upgrades. While the NHAI faces no funding shortage, Gadkari said the maritime sector lacks an institutional finance body like the Power Finance Corporation in energy. He stressed the need for transparent, efficient systems to attract investors and ensure project viability. Recalling the Sagarmala initiative, he highlighted its success in completing INR 7 lakh crore worth of port-led infrastructure projects nationwide.
Union Minister Shri Nitin Gadkari has underscored the necessity of creating a dedicated platform to finance projects within the maritime sector, asserting that this step could help accelerate national economic growth and employment generation. Speaking at a recent event, the former Shipping and Ports Minister expressed confidence that India's logistics costs were likely to drop to around 9% by the end of December owing to advancements in road transport infrastructure. Advertisement
Gadkari mentioned that the National Highways Authority of India (NHAI) did not face funding constraints, but timely expenditure on road construction projects remained a concern. However, he stressed that the maritime sector required an institutional mechanism for financing, drawing parallels with the energy sector where specialised entities such as the Power Finance Corporation have significantly contributed to capacity expansion.
He further suggested that a simplified and transparent financial system would help attract investments and foster confidence among stakeholders. According to the minister, ensuring transparency, quick decision-making, a corruption-free environment, and improving sectoral credibility were key to making maritime projects economically viable.
Gadkari emphasised that promoting employment opportunities for India's youth remained one of the government's foremost economic objectives. He cautioned policymakers to remain aware of potential risks when designing financing models, recounting his past experience with foreign currency borrowing.
The minister recalled that during his tenure in the shipping ministry, a foreign currency loan of INR 3,000 crore was raised from Singaporean lender DBS to construct a six-lane highway from JNPA, using the port's balance sheet. Initially, the arrangement appeared advantageous, but subsequent currency fluctuations caused challenges, leading to the National Highways Authority of India taking over the loan.
He also reflected on the Sagarmala project launched under his leadership, noting that profits of around INR 6,000 crore from 12 major ports had been utilised to mobilise resources, resulting in the completion of works worth over INR 7 lakh crore to date.
Source - PTI
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