Thiruvananthapuram, Feb 25: The Mobil Peevees Co Ltd and the Kerala Government are expected to sign the build operate transfer (BOT) agreement for the Rs 300 crore LPG terminal at Beypore near Kozhikode soon.The BOT agreement is expected to be signed on March 4, state industry ministry sources said here on Tuesday. The state cabinet had cleared the project on January 28 last and had approved the 14 clauses for the BOT agreement.
The project is jointly promoted by Mobil (USA), Peevees Petroleum Co, promoted by PV Abdul Wahab, a Dubai-based NRI and Kerala State Industrial Development Corporation (KSIDC), which holds a five per cent stake.
Mobil Peevees Co Ltd managing director John P Parry had recently criticised the laxity on the part of the state government in implementing the project and ensuring various clearances for the venture.
He said two years had lapsed since the MoU was signed in 1995. The required clearances were yet to be obtained. It included statutory clearances from Indian Navy,building permit from local panchayat and clearances from State Directorate of Ports.
The news regarding the signing of a formal BOT agreement for the project comes in the wake of the criticisms by the Mobil chief against the government.
The Mobil chief was away in Dubai when contacted for his comments. The project envisages the development of Beypore port for handling vessels bringing Liquefied Petroleum Gas (LPG) which will be marketed in Tamil Nadu and Kerala and tanker berth facilities for other vessels as approved by the union environment ministry.
The KSIDC had already given Rs 90 lakh for the project and the state government had allotted 44 acres at Chaliyam near Beypore for the development of the port.
As per the BOT agreement, the company can manage the project for 15 years after which it has to be handed over the state government. However, Mobil Peevees is reported to have requested for extending the BOT agreement to 25 years.
Copyright(c)1998 Indian Express Newspapers (Bombay) Ltd.
