Bengal asked to take over CIWTC

The Centre has asked the West Bengal government to take over the Central Indian Water Transport Corporation (CIWTC) Ltd, the nodal agency for managing inland water cargo transport in the country.

Roads, Highways and Shipping Minister T R Baalu has shot off a letter to the state government, even as negotiations for yet another revival package for the corporation from the Centre is on.

"The corporation has simply proved to be a drain on the government's resources, with CIWTC not being able to show any satisfactory results from the 4 year restructuring programme worth Rs 140 crore, announced in 2001," a ministry official said.

As a part of the revival package, the corporation was supposed to eliminate its operational losses and reduce manpower and sale of idle assets in West Bengal and Assam in four years, a ministry official said. But the corporation had failed to utilise the funds constructively.

Of the total Rs 140 crore sanctioned, the Centre was to provide a support of Rs 76.5 crore, while the rest of it was to be raised from the sale of assets.

However, the corporation has not raised its own resources via sale of assets in the past four years and the Centre has, in fact, pumped in more than Rs 120 crore, with no perceptible result, official said.

Now with the 4-year period coming to an end, talks for another revival package has commenced. The ministry, however, seems sceptical about the corporation's ability to turn around on the back of government support.

According to the annual report of the shipping ministry, CIWTC has managed to complete just valuation of its idle assets, till now. It's operational losses stood at Rs 17.5 crore for 2003-04.

Moreover, the Rajabagan Dockyard that was supposed to be closed down as a part of the restructuring, was still functional. The dockyard suffered operational losses of Rs 4.25 crore during the last fiscal.

"Given the situation, the ministry would be glad to hand over the reins of the corporation to the state or even a private party. Disinvestment is an option too," the official said.

He added that CIWTC was on the disinvestment agenda of the previous government, but the change of the regime had made the situation uncertain.

The corporation has, however, been able to reduce its work-force from 2,400 to 1,400 and also shut down the Deep Sea Ship Repair division, which was also the part of the deal in the revival package of 2001.

Ministry officials said till a final decision on the another restructuring programme was made, the government would be bearing the company's operational expenditure on salary and wages.