Provisions:
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Seven major ports will see their operations privatised in the year 2021-2022.
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India has 12 major ports under the control of the Centre. These major ports handle about 60% of its total cargo traffic.
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The budget has announced a subsidy scheme of Rs. 1,624 crore for a period of five years for Indian shipping companies to encourage more merchant ships with Indian flags.
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The Budget also envisages boosting the recycling of ships at Alang in Gujarat.
Analysis:
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The proposal to privatize operations at seven major ports is in line with the expectation of better efficiency and use of better technology that would accrue due to private sector involvement.
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The initiative to encourage Indian shipping companies will enable greater training and employment opportunities for Indian seafarers.
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India aspires to grab at least 50% of the global ship-recycling business through the incentives for ship recycling.