West Bengal to ink fresh deals with KoPT for Kulpi

The West Bengal government will have to sign a separate agreement with Kolkata Port Trust (KoPT), over and above the pacts it entered into with Bengal Ports Ltd (BPL) on Wednesday, to facilitate development of the private port at Kulpi.

Two parties will have to thrash out details on various issues like piloting, channel maintenance and dredging among others before the actual ground work for the port and a special economic zone can start.

The state government has committed to the promoters of BPL, P&O Ports, Keventer Agro and Mukund Steel, that the agreement would be favourable for the private port. "It is a pre-requisite for the development of the port," sources said.

The most contentious issue in the agreement would be the cost of dredging and who is going to bear the burden. State government is of the opinion that KoPT should continue to pay the dredging bill even after minor port comes up.

However, it can be mentioned that KoPT does not foot the Rs 300 crore annual dredging bill from its pocket as the Union ministry of shipping reimburses the entire amount to the port.

Dredging is required for maintaining the long navigational channel in river Hooghly for the Haldia Dock Complex. On the other hand, Kolkata Dock System (KDS) does not require capital dredging.

Kupi, 45 kilometer south of Kolkata, falls in the same channel that of KDS and thus does not need dredging. It presently has a draft of 8.5 meter which is enough for the ships meant to be handled at the port.

State's argument is that since Kulpi does not require dredging, the cost should not be borne by the port. Over and above, it is principally against putting the dredging bill on any port.

"If the bill of Rs 300 crore is put on KoPT, it will become sick. Thus, the Centre should continue to bear the cost irrespective of Kulpi Port comes up or not," sources pointed out. However, in case Kulpi requires dredging in future, the sharing may have to be worked out.

"This is going to be an agreement without any precedence since there is no riverine port in the country and no minor port coming up on the same river. This will be a unique and challenging task," they added.

Port and government had earlier signed a MoU but the issue of dredging was not clearly spelt out. Before the actual work on the project start, everything, however, has to be in place to minute of details.