Vizag port net at Rs 159.5cr

Visakhapatnam Port earned a net profit of Rs 159.5 crore during the financial year 2005-06 as compared with Rs 10.47 crore in the preceding year.

"In 2004-05, the port was left with a net surplus of Rs 10.47 crore due to the diversion of around Rs 182 crore to the pension fund. However, the port did not divert funds to the pension fund this year, so the net surplus rose to Rs 159 crore," port sources told Business Standard.

The port paid Rs 50 crore towards income tax and a fringe benefit tax of Rs 48 lakh for the year 2005-06.

Total income for 2005-06 touched Rs 528.8 crore, a growth of 5.3 per cent as compared with Rs 501.87 crore in the preceding year.

Of this, cargo handling and storage charges accounted for Rs 273 crore while about Rs 159 crore was earned through port and dock charges. The port earned Rs 74 crore from railways and about Rs 22 crore from estate rentals. It handled about 55 million tonnes of cargo this year.

The port transferred Rs 8.75 crore to the general reserves in 2005-06 as compared with Rs 2.6 crore in 2004-05.

During the current year, Vizag port is aiming to handle about 60 million tonnes of cargo and, therefore, is expecting higher revenues.

"Apart from increasing revenue by way of handling more cargo this year, we are initiating additional measures to reduce the expenditure wherever possible," sources said.