Centre Declines ₹1,300-Crore Funding Request for Mormugao Port Modernisation

According to senior officials, Union Minister Sarbananda Sonowal informed MPA during a recent review meeting in Goa that the Centre would not be able to fund the proposed modernisation project. The proposal, submitted by MPA in mid-January, sought central assistance to redevelop Berth No. 9—the only berth at the port that has not been privatised—as well as financial support for capital dredging of the port’s approach channel.      The ministry has instead advised the port authority to explore alternative funding options. However, MPA officials maintain that the organisation has limited financial flexibility.   “The ministry asked us to look at other options, and we said that we don’t have any other options. Even if we take a loan, we will find it difficult to service the loan,” an MPA official said.          The ministry has also directed the port to deepen its approach channel to a draft of 19.8 metres, enabling the port to handle larger Panamax-class cargo vessels and improve operational capacity.   Officials present at the review meeting said the Centre’s financial constraints stem partly from reduced allocations under the Sagarmala Programme following the impact of the West Asia crisis.         “Due to the West Asia crisis, the central ministry did not get the expected funding under the Sagarmala mission. The minister asked ministry officials and the Inland Waterways Authority of India to identify alternative funding sources,” an official familiar with the discussions said.          MPA officials reiterated that both the berth redevelopment and dredging projects require grant-based funding from the Centre, arguing that borrowing would further strain the port’s finances.      “We can’t take the funds from the pension corpus. It would put the organisation in trouble. We don’t want to put the port in the same financial situation as in 2012,” an MPA official said.   The funding setback comes as Mormugao Port seeks to modernise its infrastructure, improve cargo-handling capabilities and remain competitive amid increasing private sector participation at major Indian ports.