Gadkari calls for dedicated finance platform for Maritime projects

Union Minister Nitin Gadkari on Monday underscored the need for creating a dedicated financial platform to support projects in India’s maritime sector, saying such an initiative would play a crucial role in accelerating economic development and generating employment opportunities across the country.

Gadkari, a former Minister for Shipping and Ports, said that while India has made remarkable progress in developing road and transport infrastructure, the maritime sector still lacks an institutional mechanism to mobilise funds efficiently. He proposed setting up a special financial institution for maritime projects, similar to the Power Finance Corporation (PFC) , which has successfully supported power generation projects over the years.

“We need to create a special arrangement to finance maritime projects, an economic mechanism that simplifies fund-raising and builds confidence among investors,” Gadkari said. He added that such a framework should ensure transparency, fast decision-making, and a corruption-free system to make the sector more credible and attractive for investors.

Highlighting the government’s priority of job creation, Gadkari said, “Creating jobs for Indian youth is the most important economic policy for the government.” He noted that investments in the maritime sector would not only enhance logistics efficiency but also generate large-scale employment in port development, shipbuilding, and allied industries.

The Minister also expressed confidence that India’s logistics costs would decline to single digits, around 9 per cent , by the end of December, owing to the ongoing improvements in road transport and highway infrastructure.

Discussing the performance of the National Highways Authority of India (NHAI) , Gadkari clarified that the authority is financially sound but faces challenges in ensuring faster utilisation of funds for project execution.

Sharing his own experiences in infrastructure financing, Gadkari cautioned about the risks associated with foreign borrowing. He referred to a case where the shipping ministry had raised ₹3,000 crore from Singapore-based DBS Bank for constructing a six-lane highway from the Jawaharlal Nehru Port Authority (JNPA). Although the loan initially appeared beneficial due to lower interest rates, the depreciation of the rupee later caused financial strain, compelling the NHAI to take over the loan.

Gadkari also recalled launching the Sagarmala Project during his tenure as shipping minister, under which the ₹6,000 crore profits earned by 12 major ports were used to leverage funds for projects worth over ₹7 lakh crore. The success of Sagarmala, he said, demonstrates how well-structured financial mechanisms can transform the maritime sector.

Emphasising the need for a similar approach today, Gadkari concluded that developing a robust financing platform for maritime projects would be essential for boosting investment, promoting trade, and sustaining India’s long-term economic growth.