Date:16/05/2008 URL: http://www.thehindu.com/2008/05/16/stories/2008051655921700.htm

Business

Possible solace for Port Trust’s dredging worries

Staff Reporter

PIB recommends Rs.297-crore grant

Cabinet committee has to approve recommendation
Bids were cancelled after allegation of cartel formation

KOCHI: The Public Investment Board, which considers proposals of Union Ministries for public sector undertakings, has recommended a grant of Rs.297 crore and a loan of Rs.83 crore for the Cochin Port Trust’s dredging operations linked to the establishment of the international container transhipment terminal (ICTT) on the Vallarpadam island. The recommendation has to be approved by the Cabinet Committee on Economic Affairs before the Port Trust gets the money for meeting one of its key commitments to establishing India’s first greenfield container transhipment facility. According to Port Trust sources, the recommendation was made after the Port Trust approached the Union government with an appeal for help for establishing a draft of 14.5 metres.

The achievement of the draft is part of the agreement with Dubai Ports World, holding company for India Gateway Terminals Limited, which operates Rajiv Gandhi Container Terminal now and will set up the ICTT.

The Port Trust is required to do about 30 million cubic metres of capital dredging and 16.5 million cubic metres of maintenance dredging over the next couple of years.

The required draft has to be achieved for the commissioning of the ICTT project.

The Port Trust had earlier cancelled tenders it called in November last year for capital dredging after the bids were found quoting extremely high rates. The cancellation came amid allegations that foreign dredging companies which participate in dredging bids by major ports in the country acted as a cartel.

The bidder is learnt to have quoted Rs.805 crore for the dredging work which the Port Trust had estimated would cost Rs.486 crore.