KPT wants to be paid for business use of riverfront land

Kolkata Port Trust (KPT) would be willing to hand over land on the River Hoogly waterfront only against payment as the port was not in a position to gift way prime real estate in the heart of the city.

KPT has refused to give away its land for free for the riverfront project conceived by the London River Association (LRA) for beautification of the Hoogly river water front to the West Bengal state government.

Some years ago, KPT had gifted more than 2km of land along the riverfront free of charge to the state government and Calcutta Municipal Corporation (CMC), on a part of which the riverside Millennium Park has come up.

This time, KPT would hand over riverside real estate only if it received some payment either through lease payment or as rent, sources close to the development said.

The state government has been exerting pressure on KPT for quite some land to secure for free prime land on the waterfront so that these could be turned into entertainment parks or commercial zones levying a gate fee and charges from users and occupiers. KPT was not agreeable of giving land free of cost for projects where the state government would make money, sources added.

The state government was expected to soften its stand on the matter. It was likely to agree to share with KPT part of rentals or lease payment received from business enterprises interested in developing the riverside project and paying lease or rent. A special purpose vehicle (SPV) or company may be set up to allow partners to bring resources into the project.

KPT wants that the proceeds from land rent or lease be deposited in a account of the SPV created for the purpose by KPT, the state government and CMC along with LRA.

Another option which KPT has put forward was it could be part of the project being implemented by LRA. It was now on LRA and the state government to take a decision on the issue, sources added.

LRA was likely to accept the KPT proposal for a share of lease or rent received for use of land for business purpose, sources claimed.

LRA has proposed the revival of the old Strand Road warehouses and their reincarnation as heritage buildings housing new activities. LRA has also recommended that the heritage-led revival of the waterfront should be used as the centrepiece of a wider revitalisation strategy to generate economic benefits for the city as a whole.