By Dr. Gyan Pathak
Though the Union Minister of Ports, Shipping and Waterways (PS&W) Sarbananda Sonowal has boasted about the achievements of India’s Major Ports in FY 2024-25, the ministry under him performed very badly, reveals the Annual Report. Actual Expenditure of the Ministry was totally unsatisfactory being it is much below the level of Gross Budgetary Support (GBS) and Internal and Extra Budgetary Resources (IEBR) outlays, both in the Budget Estimate and the Revised Estimate level.
The Budget Estimate of Gross Budgetary Support (GBS) for FY 2024-25 was Rs 2377.49 crore for the Ministry. However, at the stage of Revised Estimate (RE), it was enhanced to Rs 2,858.54 crore. Against the RE allocation of Rs 2,858.54 crore.actual expenditure as on 31st December2024 was merely Rs 1,669.75 crore, the Annual Report 2024-25 of the Ministry revealed.
As for the IEBR outlay is concerned, the Annual Report reveals, it was Rs 5218.07 crore at the BE level, which was increased to Rs 8508.54 crore at RE level. However Actual expenditure by 31st December was only Rs 5546.80 crore.
As if such a dismal performance was sought to be veiled by the Minister, he boasted, “I am immensely proud of the remarkable achievements of India’s Major Ports in FY2024-25, a year that stands as a testament to the transformative vision and leadership of our Hon’ble Prime Minister. Under his guidance, the Ministry has worked tirelessly to modernize port infrastructure, enhance operational efficiency and foster private sector participation, paving the way for unprecedented growth in India’s maritime sector.”
A government of India release stated on May 13, that India’s Major Ports have consistently demonstrated remarkable progress over the past decade, with FY 2024-25 emerging as a milestone year in terms of cargo handling, operational efficiency, and infrastructure modernisation. In FY 2024-25, Major Ports registered an impressive annual growth rate of 4.3% in cargo handling, increasing from 819 million tonnes in FY 2023-24 to 855 million tonnes in FY 2024-25.
What was stated in the government’s statement is certainly impressive, but it does not give the real picture of the entire sectors of under the Ministry of PS&W. There are four major heads, but in none of them, Ministry’s expenditure level was satisfactory.
In Ports and Light-houses sector, the GBS allocation at BE level was Rs 881.01 crore, which was increased to Rs 943.21 at RE stage but actual expenditure by December 31, 2024 was Rs 643.35 crore. IEBR outlay for this sector at BE level was Rs 4650.07 crore, which was increased to Rs 7929.26 crore at RE level, but the actual expenditure was Rs 5046.30 crore.
As for shipping sector, GBS outlay at the BE level was Rs 325.48 crore, which was increased to Rs 346.19 crore at RE level, but actual expenditure was only Rs 153.82 crore. As for IEBR allocation for this sector, it was Rs 568.00 crore at BE level, increased to Rs 579.28 crore at RE level, but actual expenditure was Rs 500.50 crore.
For Inland Waterways Authority of India (IWAI), GBS allocation at BE level was Rs 1091.50 crore, which was increased to Rs 1195.11 crore at RE level, but actual expenditure was Rs 820.61 crore.
The worst scenario was in ‘other’ sector which was allocated Rs 79.50 crore as GBS are BE level, increased to Rs 374.03 crore at RE level, but actual expenditure until December 31, 2024 was only Rs 51.97 crore. It shows how poorly the things are planned, made allocation for them, and the amount actually spent.
How can we explain the tall claim of the Union Minister, who said “record breaking” cargo handling to significant improvements in operational parameters and financial performance? It should be noted that approximately 95% of the country’s trade by volume and 68%by value is moved through Maritime transport in India. It is therefore natural that the figures would increase year by year. Given the long coastline of about 11098 km, spread on the western and eastern shelves of the mainland and also along the Islands, India does need progress comparable with the requirement, not the year after year increase of figures that though impressive fall short of the actual need of the country.
For 2025-26 the GBS allocation for Ministry of PS&W is Rs 3470.58 crore and IEBR allocation is Rs 7123.46 crore much higher than the actual expenditure of Rs 1669.75 crore and Rs 5546.80 crore respectively in 2024-25. India expects that the Ministry does not repeat its dismal performance in the current year.
The Ministry is working on various projects, and is pushing for privatisation in India’s major ports in a big way. There are a total of 12 Central Government owned major ports and approximately 217 other than major and intermediate ports in the country. By 2030, 85% of cargo at major ports is projected to be handled by PPPs and private operators. A pipeline of 46 PPP projects worth INR 63,000 crore has been identified for implementation between FY 2024-25 and 2028-29, aimed at enhancing capacity and efficiency.
Union Minister’s boasting on Cargo Traffic and Major Indian Ports by the help of private participation, seems to be directed towards speedy privatisation of the major ports, which is in line with the general policy of the government of bringing private players, and resorting to gradual privatisation of public sector in all areas of the economy. Suitable changes in laws have been made, and several others are intended. Nevertheless, Ministry of PS&W needs to improve its own performance more than the boasting. (IPA Service)
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