Kandla port's move to collect fee draws flak

The Kandla Port Trust (KPT) faced a strong protest from the industry against authorities' decision to collect mortgage fee for issuing a "No Objection" certificate to lessees for securing bank loans against mortgage of lease-hold plots to construct residential / commercial buildings.

The Gandhidham Chamber of Commerce and Industry (GCCI) organised a massive peace march here.

A large number of GCCI members participated in the rally, which passed through all the major junctions in the city before culminating at the KPT administrative office.

Later, chamber president Babubhai Ahir met the KPT chairman to register the industry's protest against the decision to collect mortgage fees.

The chamber also sent a delegation to the ministry of shipping in New Delhi. But the ministry's response was lukewarm to their demand to withdraw the decision, according to a press release issued by GCCI.

Until now KPT used to charge Rs 100 irrespective of the loan amount, but the same was enhanced unreasonably with effect from April, 2004 and hike it again in March 2006.

As per GCCI, the port neither lends any amount to lessees nor does it stand as guarantor for loans. When no lease rights are transferred, the fee for merely issuance of "No Objection" certificate is high. Linking the fee with the loan amount is irrational and unlawful, the chamber feels.

The region produces about 70 percent of the total requirement of edible and industrial salt for the country and the salt-manufacturing pans of Kandla have also been covered under the scope of enhanced mortgage fees.