Low dredging subsidy might hit Kolkata Port Trust

The Centre's move to phase out dredging subsidy could impact the efficiency of the Haldia Dock Complex (HDC) under the Kolkata Port Trust (KoPT) and cargo handled could dip to 30 million tonnes (mt) per annum mark by 2020.

Withdrawal of subsidy would result in suspension of dredging, which would not be a positive sign for KoPT.

KoPT Chairman R P S Kahlon said doing away with the dredging subsidy might impact the cargo handling capacity. "We have been hearing about this, but the ministry has not given this in writing. There is a thinking at the Planning Commission-level and Cabinet level and they are considering whether to continue with this subsidy," said Kahlon.

The dredging subsidy for KoPT stood at Rs 500 crore in the last financial year. KoPT's cargo handling capacity stood at 43 mt a year.

The deadline for inviting a Request for Proposal (RFP) for the Dock-II project at Salukhali, close to the existing dock, has been extended to May 17.

This is the third time the final date for RFPs has been extended.

After the pullout of India-French joint venture Haldia Bulk Terminal (HBT) from Haldia, KoPT had failed to get any private player to build the proposed Salukhali Dock.

"There are five companies, which have shown interest and two out of them are really serious about this," said Kahlon. He was present at a seminar organised by the MCC Chamber of Commerce and Industry.

The Rs 1,700-crore project to build four berths at Salukhali was proposed to be executed under public-private partnership model.

Although KoPT had earlier claimed that many private players were keen to participate, the tender seeking an interested private player for the project has seen no response. The project would have added 23.4 million tonne capacity.

Despite the controversy over HBT's pullout from Haldia in November last year, KoPT went ahead with its capacity expansion plan, inviting RFP for the Haldia Dock II project at Salukhali.

Talking about the Sagar port project, Kahlon said the Cabinet nod was still due.