[Infrastructure] Shipping & Port infrastructure, Major ports, FDI, Sethu Samudram, Budget 2014 announcement

MrunalEconomy30 Comments

Mrunal’s UPSC GSM3-2020 Model Answer lecture: Science Technology, Internal Security Border Management Questions from last Mains Exam Solved!
  1. Prologue
  2. [Act 1] Shipping
    1. S1: Major ports on West Coast
    2. S2: Major Ports on East Coast
    3. S3: Economic Survey: Shipping reforms
    4. S4: Budget 2014: Shipping related announcement
    5. S4: TAMP: Tariff Authority for Major Ports
    6. S5: Sethu Samudram


Economic Survey Ch11. Energy, Infrastructure and Communications. Total four subparts

  1. Energy & communication
  2. Roads, Industrial corridors, PPP, Infrastructure problems & reforms
  3. Shipping, aviation
  4. Railways infrastructure

Cover Economic Survey Shipping aviation

[Act 1] Shipping

Major ports of India

S1: Major ports on West Coast

A: Artificial, N: Natural harbor
N Jawahar Nehru, Nhava Shewa MH (2)
N Mumbai, 1873
  • Kandala, Kutch. Tidal port
  • in 50s because Karachi port lost in Partition
  • first Exclusive Economic Zone(EEZ) in India and Asia
Guj (1)
N Mormugao. Tidal Port, @Zuvari estuary, iron-ore export Goa (1)
A New Mangalore. Deep water, all weather Karnataka(1)
N Cochin/Kochi. Willingdon island Kerala(1)
Total Major Ports (West Coast) 6

S2: Major Ports on East Coast

A: Artificial, N: Natural harbor
  • Haldia | Kolkata.
  • Riverine port
  • Oldest major port of India#
  • Need constant dredging to keep depth.
  • new proposed: Sagar
  • Vishakhapatnam. & Eastern Naval command
  • new proposed: Dugarajapatanam
A Paradeep (manmade lagoon) Odisha(1)
N Tuticorin TN (3)
A Chennai (all weather)
A Ennore (private, under companies Act)
  • Port Blair (Southernmost). Declared 13th major port in 2010.
  • named after British officer Lt. Archibald Blair
Total Ports East Coast 7
  • #Some books (Pearson, Pratiyogita) mention Chennai to be the oldest port, but sarkaari sites maintain that Kolkata is the oldest port. (Ref#1, Ref#2)
  • CDS/CAPF randomly ask question whether xyz port is natural harbor/artificial / riverine- hence need to mugup.
  • States with highest Minor ports: Maharashtra >> Guj >> A&N >>Kerala >> Odisha

S3: Economic Survey: Shipping reforms

  1. Main problems: ageing fleet, manpower shortage.
  2. While India made great success metro rails and airport infra. but shipping infrastructure has been neglected.
  3. India does not have world class ports.
  4. Third-generation ships are not able to enter the harbour. Their goods have to be offloaded in Srilanka, then sent to India in smaller ships.
  5. India’s port charges are considerably higher than in many developed countries.
  6. Port congestion, delay in turnaround, takes lot of paperwork to load/unload cargo, slow process of customs clearance, inadequate road and rail connectivity
  7. There is urgent need to replace our ageing ships with new ones. But Government-owned shipyards like Visakhapatnam are not receiving new orders due to global slowdown.

S4: Budget 2014: Shipping related announcement

  1. Will frame new policy, so increase employment, Indian shipbuilding and maritime transport.
  2. Sixteen new port projects are proposed
  3. New SEZs at Kandla and JNPT.
  4. Will develop Tuticorin outer harbor.
  5. Inland navigation: ‘Jal Marg Vikas’ (National Waterways-I) on Ganga.  Between Allahabad and Haldia. Deadline: 6 years, 1620 kms, 4200 cr.

S4: TAMP: Tariff Authority for Major Ports

Major port Minor ports
TAMP decides maximum tariff charged by Major ports for cargo handling
  • They’re free to fix tariff charges
  • They don’t fall under TAMP regulation.
Major port operators want TAMP abolished, so they too can raise tarrif and expand. They can charge higher prices and re-invest profits to modernize further.
  • Reform: 2013, shipping ministry exempted Port projects after Aug-2013, from TAMP.
  • but Major port operators want all ports to be removed from TAMP mechanism

S5: Sethu Samudram


  • Old topic, Needs to be prepared again because NDA/BJP in power.
  • This project wants to create a shipping canal between Palk bay & Gulf of Manner.
  • Pro-argument: Will reduce time and fuel consumption. Improve traffic @minor ports in South-East India
  • Anti-argument: marine biodiversity will be damaged + religious sentiments about Ram Sethu.
Shipping: more stupid statistics
Coastline 7517km (including A&N, Lakshadweep)
Maritime States
  • five on west coast
  • four on east coast
Major Ports
  • 13 +2 proposed
  • Under the union Government
  • handle 57% of traffic
Minor Ports
  • >180
  • under State Governments
  • handle 43% of traffic, but higher growth rate than major orthodox s.
  • 100% permitted
Ship-Breaking Industry
  • India #1
  • India 3rd largest supplier.

Trade volume / value

% ___ India’s foreign trade via shipping industry
95% Volume wise
68% Value wise
Indian History Freedom Struggle Pratik Nayak

30 Comments on “[Infrastructure] Shipping & Port infrastructure, Major ports, FDI, Sethu Samudram, Budget 2014 announcement”

  1. Hi Mrunal. Congrats for doing a marvellous work.

    On the sideline, I would like to ask you a favour. Can you include “About Us” or “Our Group” or anything of that sort in your webpage so that we can know the details of yourself and your core team. I can understand that you dont do this work for publicity. But, we, as followers of this site, want to know the details of the people who are helping us in a big way.

      1. kapys, do not waste your time on this nonsense issue , focous on study because you are violating right to privacy of mrunal sir and his team and one more thing eat fruit and do not waste time on counting seeds of that fruit. thanks

  2. Mrunal guruji..m gerting problem in reading the aptitude section..there no mension from which article we should start..for e.g. in stdw topic..I hav to open all articles..and then guess which wil I have to read first..guruji plz make it user friendly..
    Thank you very much mrunal guruji..

    1. @ bhaveah…dnt get directly to mrunal apti….first choose topic from ur apti book,,, for exmple,,,RS aggrwal or sarvesh kumar or neodr ur havng..pick a topic goto mrunal undrstand the concept..then cm back nd do max prcts…its done.

  3. @mrunal Sir I have a confusion regarding exception of demand function i.e Giffin goods. Are these goods are established facts are mere conjecture. Because NCERT clearly mention that Price elasticity of demand is always a negative terms.But if we accommodate giffin goods than this law will be violated. Please clear my doubt if time permits.

  4. Good morning sir.what is the differentiating factor between major port and minor port?is it the load that dey can handle or the authority which governs dem?

  5. let’s be sanguine…..

    may Almighty fill enthusiastic zest in us at the penultimate moments…..
    all the best …guys

  6. Hey Mrunal.. one doubt .With inflation , currency of economy depreciates ( loses its exchange value wrt a foreign currency )… As rupee depreciates , export increases as producers gets more profit now comparatively . – But a diff point-view says that inflation decreases the cost competitiveness of the product in the foreign market , so its demand of the product in the foreign market should decrease and thus , exports… plz solve the mystery …Plz elaborate..

  7. It is so because the cost of your input has gone up due to falling value of your currency.This will, in the long run, lead to your product becoming costlier relative to other country’s thereby making yours less competitive.Hence demand for your currency is less.Also because of the goods in your country being costlier in relative sense, people would prefer importing leading to outflow of foreign exchange and further depreciation of your currency sucking your country into a vortex of crisis.

  8. in this article, you’ve mentioned that Kolkata is the oldest port but last year you told that Chennai is the oldest.
    Please clarify..

  9. very importnt point is that east coast has 7 ports while west coast has 6..
    bt ncert says western coast are more suitable for making ports bkz of submerged

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