After the Orissa government and Dhamara Port Company Ltd (DPCL) which had gone out on the offensive against Kolkata Port Trust (KoPT) for unilateral extension of the port limits, now the developers of upcoming minor ports at Chudamani and Subarnarekha have opposed the move.
These minor port developers have pointed out they may not be able to achieve financial closure as banks have raised doubts about their future operation given the recent development relating to extension of KoPT limits.
"We had a meeting with the developers of Dhamara, Chudamani and Subarnarekha ports. While the Dhamara port which has already become almost operational does not see immediate threat from KoPT’s unilateral move, the developers of Chudamani and Subarnarekha feel they may not be able to achieve financial closure with banks raising doubts over the future of such ports in the light of extension of Kolkata port limits. Both these port developers have demanded withdrawal of the KoPT notification, a top official source told Business Standard.
"At the meeting, a consensus was reached that the arbitrary extension of KoPT's limits will seriously jeopardize the operations of minor ports coming up along Orissa's coastline. We will strongly raise this issue and demand immediate withdrawal of the notification extending KoPT's limits at the meeting of the Union ministry of shipping to be held on June 2", he added.
Chief Secretary B K Patnaik said, "The Central government has called a meeting on the issue of extension of KoPT's limits on June 2. Before this meeting, we had called a meeting of the minor port developers to take their views. We will examine their views and take a stand to ensure that the state's interests are not compromised".
While Dhamara port is being developed by a special purpose vehicle called DPCL, a 50:50 joint venture between Tata Steel and L&T, the port at Chudamani in Bhadrak district is proposed to be developed by Essel Mining & Industries Ltd.
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It may be noted that the Orissa High Court had recently asked the KoPT authorities not to act in haste in connection with the issue of extension of port limits.
A two-member bench of the High Court (HC) consisting of Chief Justice V Gopal Gouda and Justice B M Mahapatra had begun preliminary hearing on the matter. The next hearing on the matter is scheduled for June 21. A Public Interest Litigation (PIL) was filed in the Orissa HC, opposing the KoPT move. The PIL had also sought scrapping of the notification extending KoPT port limits.
The shipping ministry is understood to have decided against taking the legal route for settling the dispute over territorial sea waters between the governments of West Bengal and Orissa.
The Orissa government had raised the issue after KoPT had intended to locate a transloading facility near the coastal waters of Orissa, threatening the business of Dhamara port. Dhamara Port has an exclusivity agreement with the Orissa government, according to which no other port facility can be created within 25 km.