KoPT's viability hangs in balance on govt decision on dredging

Kolkata Port Trust, the only riverine port of the country, has sought the Centre's dredging subsidy to continue post 2015-16 to keep the port viable.
"If dredging subsidy is not given, the port system of Haldia and Kolkata cannot be saved. It is not economically viable unless subsidy is given," KoPT chairman M T Krishna Babu said in his first interaction with media after he assumed additional charge besides being chairman of the Vizag Port.
He said that as per the last Cabinet decision, the government reduced the reimbursement of expenditure incurred on dredging to 85 per cent and this formula got expired in 2015-16.

"We have sought to keep dredging subsidy to continue and already appealed to the government for extension. KoPT also has a huge baggage of pensioners liability and a demand for fiscal help in this matter has been rejected by the government in the past," Krishna Babu said.
The Cabinet is yet to take a decision on the fate of the dredging cost subsidy structure.
Meanwhile, the port is trying to reduce the burden by opening the Eden channel for navigation to Haldia in the hope of saving Rs 60-70 crore in dredging cost compared to Auckland channel.

The KoPT has spent Rs 380 crore in dredging of the channels in 2015-16. It has received Rs 275 crore from the Union government against a receivable of Rs 350 crore.

Krishna Babu said in line with the government's vision of focusing at riverine cargo movement several steps were being taken to increase cargo volume.
"The NTPC is already taking coal for its Farraka unit and we are now talking to SAIL for 2.2 million tonne cargo for Durgapur.
"SAIL is asking to reduce the cost by Rs 150 per tonne. We and transloading partner are discussing on how to reduce the cost to get additional business in KoPT," Krishna Babu said.