Infrastructure is a key to achieving development and progress. Infrastructure development assumes a greater significance in accelerating economic growth. Although infrastructure in itself normally covers sectors such as energy, transportation, telecom and so on, its spin off multiplier effects are felt in all other economic sectors. Within transportation, Ports Development occupy a prominent position not only for its economic importance at a regional level but also for foreign trade growth at a national level and for linkage with the world at the global level.
Realising importance of ports infrastructure, the State Government of Maharashtra revised the Port Development Policy during 2010 and identified seven ports for development on Public Private Partnership (PPP) basis. Dighi Port was one of these ports and it is being developed on an integrated infrastructure format inclusive of Multi Product SEZ and Free Trade Warehousing Zone (FTWZ). It is the first of such ports that has commenced development under PPP Model and will be fully operational by 2012.
I L & F S is a co-developer of the Dighi Port and holds a 20 per cent equity in the project. Total investment in Dighi Port and related infrastructure is estimated at Rs. 4500 crores and of this Rs. 1500 crores have already been invested. When fully operational, the Dighi Port will contribute Rs 5000 crores to the Government exchequer and will generate employment for 5000 people. It will also facilitate investment in excess of Rs 1000 crores in the region.
Delhi Mumbai Industrial Corridor (DMIC)
The Dighi Port has been identified and included as an Economic Hub under the prestigious Dedicated Freight Corridor (DFC) Project and Delhi Mumbai Industrial Corridor (DMIC) Project. This is being developed jointly by the Government of India and the Government of Japan for promotion of industries, infrastructure and investment.
DMIC is s very ambitious project which will cover about 14 per cent of the geographical area and approximately 17% of the population of India. The population in the project influence area is 178 million of which 70 million will be workers.
In the state of Maharashtra, DMIC will have industrial parks, i.e. manufacturing zones for food processing, light manufacturing and heavy manufacturing. It will also have multimodal and logistics supports as well as distribution networks. The green field port at Dighi is the final node for DMIC and will compliment the infrastructure development under the auspices of DMIC. Total investment proposed in DMIC is US$ 90 billion. Investment proposed in Dighi port as part of DMIC is expected to be around US$ 2 billion and it will facilitate investment of US $ 6 billion in creation of industrial and multimodal logistics hubs in the state of Maharashtra.
Mega National Investment and Manufacturing Zone ( NIMZ )
The Dighi Port area (230 sq.kms) has also been incorporated for special development as a Mega National Investment and Manufacturing Zone (NIMZ) under the newly announced National Manufacturing Policy. It will entail an investment of US $ 5 billion and will include the Multimodal Logistics Hub, Industrial Cluster and support Infrastructure and Services like Container Freight Stations (CFS), Inland Container Depots (ICD), Warehousing, Cargo Distribution, Cold Storages, Stevedoring, C&F Services etc. The NMIZ will be managed by a special purpose vehicle set up by the Government of India. In all there are 7 mega zones planned to develop manufacturing activity and create employment.
The Dighi Port has signed Memorandum of Understanding (MoUs) with a wide range of customers for the purpose of movement of their export & import cargoes. Important among these includes Adity Birla Group, Bhushan Steel, Essar, Uttam Galva, POSCO India, Maruti Suzuki, MMTC, RCF, JAPEE Group, TATA Group & so on. This will ensure utilization of the port capacity to the maximum.
The Dighi Port will augment national cargo handling capacity by as much as 70 million tons per annum It will relieve congestion at Mumbai and J.N.P.T Ports thereby saving demurrage cost incurred by Indian Trade. Not only it will save huge foreign exchange but it will also reduce transaction costs and make Indian products competitive in world markets. The port will have better equipment and facilities resulting in faster turnaround of vessels. Besides, coastal shipping as well as coastal security management will significantly be improved because of the Dighi Port. It will also boast of the first LNG terminal in the State.
Spin Off Impact
Dighi Port will cater to a large number of Industrial Clusters such as, Dighi Industrial area, Vile Bhagat Industrial Region, Pune Industrial Region, as well as Nashik, Igatpuri, Sinar, Roha and Chiplun industrial region. It will lead to national wealth creation in terms of assets for railways worth Rs. 700 crore and additional freight earnings of minimum Rs. 200 crores yoy. For the State Government of Maharashtra it will bring royalty and other charges worth Rs.1000 crore and for the Central Government duties and taxes worth Rs. 5000 crores according to estimates.
Corporate Social Responsibility (CSR)
The Dighi Port has a bright future and will have a strong economic impact on the region. The port has undertaken Corporate Social Responsibility (CSR) initiatives worth Rs. 50 crores to contribute to the social welfare of the region.
Silent features of such initiatives are mentioned below:
- Provision of portable water to Dighi Village by constructing water pipe, water tanks, wells as well as through tankers. A permanent water supply scheme has also been planned for Dighi at a cost of Rs. 8.26 crores and Dighi Port will contribute Rs. 5.78 crores. A similar scheme has also been planned for Agardanda at a cost of Rs.9.9 crores where Dighi Port Ltd. will contribute 8.5 crores
- Dighi Port is erecting a new electric substation for supply of electricity to the surrounding villages at a cost of Rs. 5 crores. This will light up several villages and benefit over a few thousand of the rural population.
- Dighi Port has contributed Rs.1.5 crores to Fishermen Welfare Fund. It has also contributed to the creation of education and medical / healthcare facilities for Dighi and surrounding villages. Further it has also facilitated infrastructure for religious and other purposes like Ganesh immersion, sports/ recreation and road developments.
- The Port has already become operational thereby leading to the emergence of business opportunities for micro and small enterprises at the local level. These are in the fields such as restaurants, car transport etc. Where local population gets employment. Thus Port is indirectly helping such small business people and generating local employment.
Future Plans
Already Dighi Port has become operational with commissioning & dedication of first jetty. The Port has evolved significant plans for expansion & diversification in future. Highlights of such plans are as under:
- Phase II of the project includes operationalisation of two/three jetties by December 2012.
- Setting up of port based Special Economic Zone (SEZ) which will provide impetus to the globalization of industry as well as township development in the region.
- Setting up of a Free Trade Warehousing Zone (FTWZ) which will lead to the development of the international trading & transshipment hub
If all goes as planned the Dighi Port, when completed, will become an economic growth centre and nucleus not only for the region and state but also for the nation as a whole.
AsiaWire 