Policy in works to allow ports extend lease beyond 30 years : Sources

NEW DELHI: The Centre is readying a policy that will allow extension of port terminal contracts beyond their 30-year lease period under certain conditions. “The policy will govern major ports and allow them to offer a lease extension for existing terminal operators, subject to certain conditions,” a Senior Shipping Ministry official said. The Major Ports are governed by the Ministry of Ports, Shipping and Waterways.

At present, there are no rules that allow an extension of these agreements which were signed in the late 90s and early 2000s. This has become a sore point for port terminal operators who want some assurance thattheywillbeabletoholdontotheir assetsforalongerperiod.

“As investors in the Indian port sector, companies strongly advocate for a consistent and stable policy regime when it comes to port concessions,” said representatives from a private port terminal operator whose lease is set to expire in a decade. Port players say that further investments in capacity augmentation can be stalled if there is no clarity in the contract extension regime. “Since large investment is involved, the private sector wants visibility over a longer period to know whether the amount spent can be recovered,” officials from another private sector port playersaid.

“Existingterminaloperatorswant right of first refusal, along with bid preference,” a Shipping Ministry official said, noting that concerns about errant players that may rig the bids to push out serious port operatorsalsoneedtobeaddressed.

“The policy is going to be finalised soon,”theofficialcitedearliersaid.

India GDP crosses $3.5 trillion in 2022 destination: Moody’s Bureaucracy in decision making may reduce aracveness as FDI

NEW YORK: India’s GDP has crossed USD 3.5 trillion in 2022 and will be the fastest-growing G-20 economy over the next few years, but reform and policy barriers could hamper investment, Moody’s said on Tuesday.

In a research report, the USbased rating agency said bureaucracy could slow approval processes in obtaining licences and setting up businesses, prolonging projectgestation.

“India’s higher bureaucracy in decision-making will reduce its attractiveness as a destination for foreign direct investment (FDI), especiallywhencompetingwithother developing economies in the region, such as Indonesia and Vietnam,” Moody’sInvestorsServicesaid.

It said a large young and educated workforce, increasing nuclear families and urbanization will fuel demand for housing, cement and new cars.

Government infrastructure spending will bolster steel and cement, while India’s net-zero commitment will drive investment in renewableenergy,itsaid.

“While demand across the manufacturing and infrastructure sectors will grow 3-12 per cent annually for the rest of the decade, India’s capacity will still rank well behind China’s by 2030,” Moody’s said.

It said despite the economy’s strong potential, there is a risk that the pace of investment in India’s manufacturing and infrastructure sectors could slow because of limited economic liberalization or slower policyimplementation.

“Lack of certainty around the amount of time needed for land acquisition approvals, regulatory clearances, obtaining licenses and setting up businesses can materially prolong project gestation. Furthermore, India’s limited multilateral liberalisation with respect to regional trade agreements willalsoweighonforeigninvestments inthecountry,”itsaid.

Ongoing efforts by India’s government to reduce corruption, formalize economic activity, and bolster tax collection and administration are encouraging, althoughthereareincreasingrisksto theefficacyoftheseefforts.

India exploring importing urad from Brazil

NEW DELHI: India is in advanced talks with Brazil for the import of urad to boost the domestic supply and keep prices under control, Consumer Affairs

Secretary Rohit Kumar Singh said on Tuesday. The Country imports 7-7.5 lakh tonne of urad annually depending on the demand-supply gap, out of which 74 per cent is importedfromMyanmar,hesaid.

"The agro-climatic condition in Brazil is suitable for producing urad. We are seriously exploring imports of urad from Brazil. The talks are in an advanced stage," theSecretarytoldreporters.

About 2 lakh tonne of urad has been imported from Myanmar so far inthecurrentcalendaryear,hesaid.

India is exploring other destinations for sourcing urad in order to reduce its dependency on Myanmar.