"The Finance Minister P Chidambaram is likely to consider a proposal in the budget for the five per cent cess with a view to improving the infrastructure," official sources said.
The suggestion follows Prime Minister Manmohan Singh's assertion that the sector needs to be developed in a massive way if the nation wished to promote trade and commerce. He has urged the private sector to participate in improving the infrastructure of the ports.
Run-up to the Budget: Complete Coverage
A scheme has been finalised for joint venture formation between major and minor ports without tender as well as between major port and company following the tender route.
Private sector investments have been facilitated and 17 projects worth more than Rs 4,500 crore (Rs 45 billion), involving an additional capacity of 60 million tonnes, have already been approved and are under different stages of implementation.
Another eight projects worth over Rs 3,200 crore (Rs 32 billion) are under consideration. The process of phased corporatisation has been initiated for the major ports, sources said.
