The government's plan of constructing new ports and expanding existing ones to support an expected increase in traffic is likely to create a huge demand for capital and maintenance dredging in India, a top official has said.

"The use of larger vessels, construction of new ports, an increased focus on coastal shipping, inland transportation and Government support are likely to drive the demand for both capital and maintenance dredging," Shipping Ministry Secretary K Mohandas told PTI on the sidelines of the SMP World Expo 2010, held in Mumbai Wednesday.

Citing a report from the National Maritime Development Programme (NMDP), out of the total port development expenditure of Rs 55,800 crore, the expenditure earmarked for the dredging of all major Indian ports by FY 12 is estimated at Rs 6,300 crore, he said.

Moreover, as the country is expected to become a trade hub going forward, an effective port infrastructure is likely to play a vital role in determining the volume of export-import trade, he said. "With India expected to emerge as a global trade hub over the next few years, an effective port infrastructure is vital to scale-up the country's trade development," Mohandas added.

The government's Sethusamudram Ship Channel project and its plan to develop coastal shipping and Inland Water Transport (IWT) are expected to open avenues for dredging in the country, he added.