Steel industries and coking coal consuming units in the eastern region are facing a tough time on account of the priority berthing given to the coking coal vessels of Steel Authority of India Limited (SAIL) by the Paradeep Port Trust (PPT).
It may be noted that around 45 vessels have been waiting at the Paradeep port for several weeks, thereby incurring huge demurrage. The situation has also threatened to render the coking coal stock of the steel units critical.
Considering the gravity of the situation, the Indian Chamber of Commerce (ICC), the Kolkata-based industry body, has written a letter to the secretary, Union ministry of shipping, on July 7 this year.
The letter apprises the Union ministry of shipping of the plight of the coking coal consuming industries due to the preferential berthing given in favour of SAIL by PPT.
The industry body feels that the practice of priority berthing sets a wrong precedent and can have far reaching legal and financial ramifications.
"MV APJ Kais, a vessel carrying coking coal for Visa Steel, has been waiting for berthing at the Paradeep port since June 14 this year. According to the normal sequencing for berthing, this vessel was scheduled to be berthed on July 7. However, on the basis of a letter from the Union ministry of shipping, the berthing of this vessel has been postponed to accommodate MV Tai Health, the coking coal vessel of SAIL, which had not even arrived at that point of time", said Vishambar Saran, president, ICC and chairman of VISA Steel in the letter.
Saran has asked the Union shipping ministry to treat all the users of PPT in a fair and equitable manner and has also called for revoking the ministry’s letter which has allowed priority berthing in favour of SAIL.
Visa Steel has also filed a petition in the Orissa High Court, contesting the Union ministry’s decision to allow priority berthing for the vessels of SAIL. The petition says the priority berthing smacks of nepotism and is highly discriminatory.
Apart from MV APJ Kais, two other vessels of Visa Steel- MV Thermidor and MV Prabhu Gopla, are waiting at the port’s anchorage since June 21 and June 22 this year.
Visa Steel has a 0.35 million tonne per annum integrated steel plant at the Kalinga Nagar Industrial Complex in Orissa’s Jajpur district.
