PM’s Inaugural Address at the Maritime India Summit, 2016
Hon. Governor of Maharashtra;
Hon. Chief Minister of Maharashtra;
His Excellency Mr. Kim Young-Suk, Minister of the Republic of Korea
Our Union Minister for Shipping, Mr. Nitin Gadkari
Other Dignitaries on the dais;
Delegates, Ladies and Gentlemen!
I have great pleasure
in being with you and welcoming you at the Maritime India Summit. This is the
first time that a global event of such a large scale is being organised by India. I extend a warm welcome to all the
esteemed guests attending this event in the maritime hub of India. I am sure,
this event; together with the seminars and exhibition, will showcase the
emerging trends and opportunities in the maritime sector.
We all know
that oceans cover more than seventy percent of the Earth's surface. We also
know that oceans contain ninety-seven percent of the Earth's water. Therefore,
maritime transport can be the most extensive mode of transport. It is also the
most eco-friendly mode of transport. However, there is one more aspect to this
fact. Which is that, oceans contain ninety nine percent of the living space on
the planet. This means that our lifestyle, transport systems and trading
behavior should not
spoil the ecology of the oceans.
Also, maritime
security, freedom of navigation and safety and security of sea lanes is equally
important.
The
challenges of climate change have shown that even offshore human behavior
can change the ecology of glaciers and oceans. This is already
causing a lot of concern for island countries and coastal communities in particular.
I hope this summit will deliberate on these issues while discussing economic
issues related with oceans. The elimination of sea piracy,
which was a big threat to international shipping a few years ago, is a good
example of how joint efforts by maritime nations can achieve outstanding
results.
Friends! There
is a reason why this important Summit has been organised
today, on the 14th of April 2016. Today is the 125th birth anniversary of a
great son of India who also lived and worked in Mumbai. I am referring to Dr.
B.R. Ambedkar, who was the architect of
our Constitution. He is also the architect of
the water and river navigation policy in India. I offer my profound respects to
Dr. Babasaheb Ambedkar on
this auspicious day. I also wish and pray that his
wisdom continues to guide us in our efforts towards nation building.
Many of us may not know
that Babasaheb created two powerful institutions
related to water, navigation and power. They were: The Central Waterways,
Irrigation and Navigation Commission and The Central Technical Power Board. His
observations while setting up these two organizations is a testimony to
his great foresight.
I quote from his
address on 3rd January, 1945:
“The
objects which have led to the setting up of two organizations are to advise on how the water resources can be best utilized and
how a project can be made to serve purposes other than irrigation.”
Dr
Ambedkar had emphasized the
importance of the new waterways policy in order to lay the foundation for a
regime of prosperity for the millions of poor of our country. I am happy to
state that we have embarked on the development of National Waterways in keeping
with Babasaheb’s vision and foresight. With a GDP
growth rate of more than seven percent, India is the fastest growing major
economy today. The IMF and the World Bank have indicated even better prospects
in the days to come. We are taking aggressive steps
to ensure that our process of growth is both fast as well as inclusive. This
summit is another step to realize Babasaheb’s dream
of an economically strong, socially empowered and technologically equipped
India.
I
understand that more than 4500 dignitaries and delegates from around forty
countries are participating in this Summit. I am particularly happy that the Republic
of Korea is the Partner Country for this event. I thank the President of Korea
and also the senior Minister, Mr. Kim Young-Suk who
is present here.
Friends! We Indians are
inheritors of a glorious maritime heritage.
The world’s first dock was built at Lothal in Gujarat
around 2500 BC during the Harappan Civilisation. This dock was equipped to berth and service
ships. It was built after studying tidal flows.
In addition to Lothal, there were also some other Indian ports, which were
major drivers of global maritime trade two thousand years ago. These included:
·
Barygaza
- which today is known as Bharuch in Gujarat;
·
Muziris which
today is known as Kodungallur near
Cochin in Kerala;
·
Korkai
which is today’s Tuticorin;
·
Kaveripattinam which
is in Nagapattanam District of Tamil Nadu;
·
and Arikamedu which is in Ariyankuppam District
of Puducherry
There are many
references in ancient Indian literature and
in Greek and Roman works about the vibrant maritime trade of India with Rome,
Greece, Egypt and Arabia. Ancient and medieval Indian
traders maintained links with countries in Southeast and East Asia, Africa,
Arabia and Europe.
Friends! Since my
government took over, among other things, we have laid emphasis on building
futuristic infrastructure. This includes building
next generation infrastructure in many sectors. Port, Shipping and Maritime
infrastructure is prominent among them. It is my Government’s endeavour to revive and restore India’s
position of eminence in the global maritime sector.
Building upon our
glorious maritime tradition, we are working hard to achieve new heights in this
area. In the very early days of our Government, we announced the Sagarmala programme. This is
aimed at leveraging our long coastline and natural maritime advantages. It also
focuses on promoting port led development, energizing the
coastal economy and infrastructure development in these areas. We particularly
want to modernize our ports and integrate them with Special Economic Zones, Port based Smart Cities, Industrial Parks,
Warehouses, Logistics Parks and Transport Corridors.
I must mention that our
vast coastline of 7500 kilometers offers a huge investment opportunity. Apart
from the length of the coastline, India's maritime potential also lies in its
strategic location on all major shipping highways. In addition, we have an
expansive and productive hinterland,
through which flows a network of mighty rivers. Our maritime agenda will
complement this ambitious infrastructure plan for the hinterland which is going
on in parallel.
I call upon the global
business community to partner with us to give shape to our process of port led
development. I am sure, the long coastline of India along
with diverse coastal regions and hard working coastal
communities can become an engine of growth of India.
To enable the growth of
the port and related sectors, we have carried out several reforms and taken a
number of new initiatives.
·
Under
our ‘Make in India’ approach, we have taken many steps to make India a global
manufacturing hub;
·
Recently
MOODY’s has appreciated the Make in India initiative;
·
We have done a lot
of corrections on the front of Ease of doing business - we have jumped up 12
ranks in World Bank’s ranking;
·
A lot of
simplification has happened in the processes for cross border trade;
·
We have greatly
liberalized the licensing regimes; This also includes the defence
sector and ship building therein;
·
We have taken almost sixty per cent of the defence items
out of the licensing process
·
Most of the FDI sectors are
now put on automatic approval route;
·
Shipyards
are being given Infrastructure status; at par with the ports;
·
Rebate
of service tax on coastal shipping has been increased to seventy per cent;
·
We have granted
customs duty and central excise exemption on inputs used in ship building;
·
A scheme of
financial assistance to promote ship building has been approved;
·
Customs
and central excise duties have been exempted on bunker fuel for Indian flagged
container ships;
·
Tax
issues of sea farers have been resolved;
·
A new company by
the name of Indian Port Rail Corporation, has been established to focus on the
last mile connectivity to ports.
·
We have enacted a
legislation for declaring one hundred and eleven waterways as National
Waterways-1.
·
We have taken up
skill development activities aggressively.
The results of our
initial efforts are clearly visible:
·
FDI
inflows have gone up by 44 per cent since this government took over. In fact,
the year 2015-16 has seen the highest ever FDI inflow into India;
·
India’s
highest ever quantity of cargo handled by major ports was in 2015;
·
The port efficiency
parameters have shown very good improvement;
·
India’s
fastest average turnaround time in ports was in 2015;
·
In the last two
years, our Major Ports have added 165 million tonne
capacity with record additions each year;
·
94
million tonne capacity was added by these ports in
2015-16 alone which is the highest ever;
·
The traffic in
Major Ports has shown a healthy growth of more than four per cent in the last
two years, despite global slowdown;
·
The performance of
the Major Ports in the last two years has been remarkable;
·
Operating
Profit margins which were declining, have increased;
·
In 2015-16 alone,
the operating profit of the twelve Major Ports has increased by nearly 6.7
billion rupees;
·
During
2015-16, Kandla Port in Gujarat breached the one
hundred million traffic landmark and displayed twenty per cent improvement in
efficiency.
·
Jawaharlal
Nehru Port Trust registered a net profit of ten billion rupees helped by a
twelve per cent increase in efficiency.
·
Our flagship
companies like the Shipping Corporation, Dredging Corporation and the Cochin
Shipyard have registered higher profits as compared to the previous year.
However, this is just
the beginning. We want to do more. We are enhancing our
own capacities of execution and implementation. The
National Perspective Plan of the Sagarmala Programme has been released today. During the last
two years, major ports have awarded 56 new Projects involving an investment of
more than 250 billion rupees. This will create an additional port capacity of
317 million tonnes per annum. Our vision is to
increase port capacity from 1400 million tonnes to
3000 million tonnes by 2025. We want to mobilize an
investment of one lakh crore,
or one trillion rupees, in the Port Sector to enable this growth. Five new
ports are planned to meet the increasing demand of the Exim
trade which will rise in proportion with the fast-growing Indian economy. New
ports are also being developed by several coastal States of India.
The multiple measures
to promote Coastal Shipping coupled with the anticipated rise in domestic
production of coal, is expected to enhance coastal transportation of coal by at
least four fold by 2025. We are engaging with our
immediate and regional neighbours to promote shipping
and maritime security. Recently India has signed a Coastal Shipping Agreement
with Bangladesh which will be mutually beneficial.
India is also engaged in the development of Chahbahar Port in Iran. A special purpose vehicle by the
name India Ports Global Limited has been established to take up Maritime
Projects overseas.
I am informed that the
Ministry of Shipping is showcasing about 250 projects with investment
opportunity in the Maritime Sector. These projects include various
infrastructure development opportunities in 12 Major Ports, projects in eight
maritime states and other agencies. Of these, over 100 projects have been
identified under the Sagarmala Programme.
With more than 14,000 kilometers of navigable inland waterways in the country,
there is tremendous potential for development in this sector. My Government is
committed to integration in infrastructure. We are also committed to creating
an enabling environment for investors and to facilitate investments
with an open mind.
Friends! All this is
being done to benefit the common man. This is being done to provide employment
to the youth. This is particularly being done to empower coastal communities.
Approximately eighteen percent of India’s population lives in 72 coastal
districts. It comprises twelve percent of India’s landmass. Therefore, there is
a need for holistic and sustainable development of coastal regions and
communities. Development of coastal communities especially fishermen requires
an integrated approach. As part of the Sagarmala programme, we will adopt a comprehensive approach with
focus on capacity building and training, upgrading of technology and for
improving physical and social infrastructure. This will be done in
collaboration with the coastal states.
These initiatives will
create employment opportunities of approximately ten million jobs over the next
ten years. This includes four million direct and six million indirect jobs. To
broaden livelihood opportunities further, we are planning to deploy modern and
sophisticated fishing vessels. This would enable them to harness resources in
India’s Exclusive Economic Zone. In addition, we are also focusing on value
addition in fisheries, aquaculture and cold chain development.
The Port Sector in
India is a good mix of Private and Public Ports, with both contributing to the growth
of the sector. The PPP model of development has been quite successful in this
sector and has helped in bringing latest technology and best practices. Private
Ports have been growing at a very healthy pace and have nearly doubled their
capacity in the last 5 years. They handle around 45 per
cent of the total cargo. Most of these Ports are new, with modern facilities
and can match the best international Ports in terms of performance and
infrastructure.
Friends! India has had
a glorious maritime history. We are on the path of shaping an even better
maritime future. The maritime sector not only creates and facilitates economic
activities; it also connects countries and civilizations. Moreover, it is the
cleanest and cheapest carrier of global trade. Investing in maritime sector is
not only investing in one’s own future; but in the future of the planet and
that of coming generations. However, in this sector, no country can achieve the
desired results in isolation. Nations have to collaborate to realize this
potential and to overcome challenges in this sector. The objective of this
Summit is to provide a platform and forum for such cooperation.
To conclude, I would
like to say that:
·
This
is the right time to come to India;
·
It is even better
to come through the sea route;
·
The
Indian ship is well equipped for a long haul;
·
Don’t
miss it;
·
Missing
it means missing a pleasant journey and a great destination.
Once you are here, I
assure you that I will personally hold your hands to see that your berthing is
safe, secure and satisfactory.