The KoPT had even offered the ministry an alternative site at Raichak, at which the ministry had allegedly expressed its satisfaction. The site is important for the port due to its connectivity with the rail and the road. Sources at the ministry, however, said the KoPT has been sent a letter notifying them of their unwillingness to part with the land.

On being contacted by The Indian Express, A Majumdar, acting-chairman, KoPT, refused to comment. “I cannot comment on the matter,” said Majumdar. Sources at the ministry, however, said port officials have already been notified through a letter sent to them on January 25.

With the ministry turning down the proposal for the project, the Diamond Harbour terminal, which was expected to salvage the Haldia situation, would only add to the port’s crisis — at a time when the existence of the port is already being questioned.

Mukul Roy, MOS, Shipping, said, “I am not aware of it. As far as I know, the dialogue between the two parties is still on and the matter should be resolved soon. I have not heard of the ministry’s decision to turn down the proposal.”

This is the second time in the recent months that the UPA government has turned down a project proposal mooted by the TMC, having turned down TMC’s objection over developing eco-tourism in Nayachar in place of the petrochemical hub.

Meanwhile, senior officials at KoPT said on Wednesday that the finance ministry was reviewing the case between the KoPT and the Dredging Corporation of India (DCI).