ICRA hopes for budgetary support for ports, shipping and logistics sector

With the union government set to present the budget 2022-23 on Feb 1, 2022, the domestic rating agency ICRA shared its pre-budget expectations on ports, shipping, and logistics sector. The rating agency expects the government to increase budgetary support for flagship projects including Sagarmala and inland waterways, providing a boost to the execution pace and investments.
Furthermore, enhancing the connectivity across India and speedy implementation of projects such as Bharatmala for the road logistics sector, dedicated freight corridor (DFC) for the railways, and Sagarmala for the waterways will be of prime focus to the center in the coming budget, ICRA believes.
There has been traction in policy initiatives for the ports sector in the current fiscal with the operationalization of the Indian Major Ports Act, 2021 and notification of market-based tariffs under the Act, notification of the revised Model Concession Agreement for PPP projects, and passage of the Inland Vessel Act, 2021 in both houses of Parliament, ICRA said.
While the slew of measures has been favorable for the sector and is expected to aid in attracting private sector investments, increased budgetary support from the center for such flagship projects will indefinitely boost the execution pace and investments, it stated.