Delay in Central nod may hit Vallarpadam terminal plan

The future of the Rs 2,500 crore Vallarpadam Container Terminal (VCT) in Kochi is in doldrums due to the delay in Central government clearance for the project.

According to industry sources and employees at the Kochi port, the regional interest of the shipping minister is the main reason for the delay in the clearance.

Union finance minister P Chidambaram in the latest Budget had announcement that a transhipment terminal would be developed at Vallarpadam on a build-operate-transfer basis.

Port sources said the Dubai Port Authority (DPA) may withdraw its proposal to set up the terminal as the tender submitted by them will expire on September 20.

"The state government and Members of parliament from Kerala are not keen to lobby for the project," they said.

According to them, the Dubai company may re-examine the project because of the delay in the clearance. As per the tender, the Dubai company will share revenue at 33.3 per cent with the Kochi port.

DPA officials who visited the Kochi port had expressed their disatisfaction over the delay in getting the clearance.

It is reported that the development of the terminal will be against the interest of two ports in Tamil Nadu.

Sources at Kochi port said the shipping secretary had submitted project proposal for the Centre's clearance almost a month back.

The plan to set up the Vallarpadam terminal was first proposed in 1992.