Kolkata Port eyes 14% revenue increase in land leases

Kolkata Port Trust (KoPT) is eyeing an increase of 14% in its earnings out of land lease and rents this fiscal year and is likely to float numerous additional lease proposals in February 2016.

"Off our huge vacant land reserves, we are putting 200 acres of land in Kolkata and Haldia (in West Bengal) presently under lease proposals. In the state's capital, several plots are expected to be put to tender by February 2016", KoPT chairman R.P.S. Kahlon told Business Standard.

Most of these plots have been deemed to be used for constructing mercantile building, riverfront recreational facilities, dry docking, jetties and other related activities.

 

While 32 such plots totaling 200 acres will be leased out for a maximum period of 30 years which may be extended further upon approval from the centre, it has reserved atleast another 400 acres of total area for a township development project.

The port authorities are expecting a one-time earning of around Rs.750 crore from this single township project which will be leased on a 99-year term.

KoPT, which has more than 10,000 acres of land in Kolkata and Haldia under control is using an estimated 42 percent off it for its own use and has rented out and leased another 3,400 acres.

The port had reaped an earning of Rs. 413 crore from such activity in the fiscal year ended March 31, 2015.

"We are expecting a total revenue generation of around Rs.470 crore in 2015-16, which is about 14 percent more than the revenue earned in the last financial year", the official said.

Dock officials have projected the revenue to increase to around Rs.525 crore during 2016-17.

When probed about the viability of outright sale of land rather than leasing, Kalhon said the later makes more sense for the port authorities as it provides continuous flow of revenue with periodical enhancements for a longer period.

This year so far, KoPT has allotted a total of 245 acres of land in Kolkata and Haldia which included renewal of existing leases for 30 years apart from issuing new ones.

In January 2014, the union shipping ministry came up with guidelines for major ports on using unused land policy to generate more revenue and asked all the 12 major ports to draw a land use plan.

Under the new policy guidelines, the vacant and unused 200 acres under KoPT will be allotted through a mix of licensing through competitive bidding and tender-cum-auction basis. Permission from the union government is not crucial here.

However, the ambitious Rs. 750 crore township project lease will need the centre's nod for implementation.

The port trust, which manages the Kolkata and Haldia docks had initially conducted an internal study to prepare the township project plan. Thereafter, it roped in the prestigious Jadavpur University as a consultant to fine-tune it further.

"It (township project) is under process for obtaining approval of (the) central government before implementation," Kahlon added.