Private ports irked over dredging norms

Private ports and terminal operators are upset with the shipping ministry's three-year dredging policy that virtually forces them to place their dredging contracts with the state-owned Dredging Corporation of India (DCI).

The new dredging policy takes effect from April 1, 2004. It stipulates that DCI will undertake dredging for the Kolkata Port Trust. All other ports will have to invite bids for dredging.

"DCI shall have the right of first refusal under Section 406 and 407 of the Merchant Shipping Act if its rate is within 10 per cent of the lowest technically qualified offer. The policy would be applicable to both maintenance and capital dredging works, including capital dredging requirement of the KoPT," the policy states.

This means that even when DCI's bid is ten per cent more than other dredging companies, all Indian ports will have to place the order with DCI.

The private port and terminal owners "" mainly from Gujarat as the state has two private ports and terminals apart from two more private ports that are being developed "" have under the banner of Association of Gujarat Private Ports and Terminals urged the ministry to change the guidelines for minor and private ports.

They are seeking the freedom to decide on all the dredging contractor, foreign or otherwise. AGPPT has indicated its apprehension over the possibility of rising dredging costs as DCI will almost have monopoly power.