Project Introduction - Port Sector Study

Chapter 1 - Project Introduction cont...

1.4 Objectives of the study

This study examines the details of these issues with special relevance to Port Sector.

The estimation of the massive funds requirement in Port Sector has made it imperative for private sector investments, which was hereto the domain of Government funding. Through the method of Case Study, the variability of such projects, the financial returns and economic justification has been discussed. The Study is also to ascertain the reasonable tariff structure, which would give maximum benefits, and earning for a private investment. The overall objective is to appraise such projects, assess their cash flows and debt repaying capacity, taking into consideration the various factors and constraints that are in existence.

1.5 Methodology

The study is based on Project Financing pattern of Indian Corporate Sector, in general and Infrastructure Sector, in particular. The source involves collection of secondary data from various sources like IDBI, IFBI, IFCI, MMTC, etc. Primary data from various publications on infrastructure sector. The data has been collected by means of personal interviews and referring to published information. The analysis and conclusions have been drawn making use of various analytical techniques.

1.6 Limitations of the study

In India, private financing of Port Projects has not taken off in real sense and a few financial institutions like IDBI, IFCI, and ICICI have financed some projects. The appraisal methods are not standardized and the various institutions are applying their own standards. Due to this, every Port project appears to be unique in its own way. Whatever project financed so far are either in construction stage or take-off stage. The true scene will emerge generating revenue to repay the loans. So, the real success or viability of Port project is yet to be tested.