We are committed to sustain our operations, in the larger interest of serving the nation.

Reduction in interest rates and taxation to provide more liquidity will boost domestic consumption and investments.

Rajiv Agarwal, MD & CEO, Essar Ports Ltd

What is the impact of the pandemic on the port sector and on your company's operational performance?

The country's ports sector has been categorized as essential services. Our key customers from the steel, oil & power and mining industries also fall under the essential services category.  Our terminals therefore must remain open despite the pandemic in the interest of securing the normal functioning of the supply chains. The successive phases of the lockdown has restricted movement of personnel and equipment, thus disrupting operations, which is why some Indian ports have declared Force Majeure and are undertaking limited operations.

While all Essar Ports facilities are operational, it is important to note that we follow detailed safety and sanitization protocols in compliance with government guidelines. There is minimal human intervention and strict adherence to social distancing norms.           

As for our operational performance, we have 110 MTPA capacity in India and have registered a cargo growth of 23.5% in FY20, compared to FY19.

What are the major challenges the port sector is facing now? 

While the first phase of the lockdown did impact the industrial activity and operations, along with the movement of manpower, cargo and other stakeholders, the revised MHA guidelines that came into effect post 20 April 2020 should pave the way for moving towards normal operations and a pickup in economic activity.  Though clouds of uncertainty remain, demand is bound to revive as we emerge from this crisis. We are committed to sustain our operations, in strict adherence with prevailing regulations, in the larger interest of serving our customers and the nation.           

Tell us some of the steps initiated to overcome COVID-19 and sustain growth.

Some of the practices which we are following at our facilities to ensure seamless operations include:

• Daily interactions with customers to understand their needs and address their concerns
• Cargo handling in compliance with government guidelines and in close coordination with Port Health Officer
• Minimal human intervention ensured through the use of mechanized facilities
• Daily thermal scanning and enforcement of social distancing
• Briefing stakeholders on hygiene protocols and spreading COVID-19 awareness
• Regular health check-ups and immunity boosting initiatives
• Working in close coordination with local authorities and Essar Foundation to provide relief to communities and stakeholders residing near our facilities.

What are the policies & reforms expected from government?

Here are some of our recommendations for boosting the Indian Economy post COVID-19:          

Recapitalization of the Indian economy

• Undertaking a focussed programme to move the nation towards self-sufficiency
• Reforms to make India a global manufacturing and export hub
• Reduction in interest rates and taxation to provide more liquidity to boost domestic consumption and investments.

What are your recommendations specific to the Ports Sector?

• Reduction in interest rates from banks to smoothen cash flow
• Moratorium on debt obligations (interest and principal repayment) for six months
• Waiver on payment of royalty, license fees, wharfage & berth hire charges during the COVID-19 impact
• Waiver of interests charged by Port Trusts on account of delay in making regular payments
• Waiver of MD charges, i.e. fixed charges for power, by state Government and respective power departments.

Brief us on some of your CSR activities to fight and overcome the current situation due to pandemic?

The Essar Foundation, which is Essar's CSR arm, has committed itself to supply 2 million meals and 100,000 units of medical supplies to people affected by the pandemic, especially communities in need across Maharashtra, the state that is worst affected by the pandemic, as well as across the states where Essar businesses operate. These communities include slum dwellers, daily wage earners, women with a background of domestic violence, and transgenders. The Foundation is supplying Personal Protective Equipment (PPE), N-95, 3-Ply face masks, and hand sanitizers to frontline workers in government and private hospitals, as well as police stations. Essar has set up the Essar Covid-19 Relief Fund to support various marginalized groups that are truly in need of funding. We are extending the support to our manpower/ labour pool so that their interests are taken care off.

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