Kochi, Feb 25: The Cochin Port Trust (CoPT) expects the proposed revision in cargo and vessel-related charges to net Rs 25 crore in the next fiscal although this has not been included in the budget estimates for 1998-99. Sources in CoPT told The Financial Express on Tuesday that a proposal to revise cargo and vessel-related charges has been accepted by the Board of Trustees of the port. It has been sent to the newly-constituted Tariff Authority for Major Ports (TAMP) for approval.The revised cargo, container handling and vessel-related charges, to be effective from April 1, is not an across the board increase, the port chairman C Babu Rajeev is understood to have told the Board of Trustees at their meeting late January, the CoPT sources said. Exceptions have been made to prevent diversion of cargo and to compete with the neighbouring ports. The ability of the cargo to bear the hike too has been taken into consideration.
The proposed revision of charges ranges from 25 to 56 per cent in general andhas taken into consideration the special situation of the Kochi port. Port charges here are slightly higher than in Tuticorin but is justifiable because the Tuticorin port does have to support a dock labour board, CoPT sources said.
In comparison to Mumbai port, CoPT charges were lower and at par with the rates prevailing in Chennai, sources added. CoPT has to incur "additional expenses" compared to other ports because it has more employees than other ports. Besides, the nature of the cargo handled differ from port to port.
CoPT sources also said that charging of labour levy will be discontinued once these revised charges come into effect after its approval by the TAMP. The expenses incurred by CoPT for the Dock Labour Board (DLB) has been loaded on to the revision, sources said. Since DLB's merger with the port in 1994, it has been loaned Rs 2.5 crore to meet its expenses.
Meanwhile, the Board of Trustees of the port has approved leasing of 50 hectares of land to the Gas Authority of India Limited(GAIL) for setting up an LNG terminal at Puthuvypin where the port trust owns nearly 800 acres of land. The proposal has been sent to the centre for approval. Lease and rental charges fixed by CoPT will be subject to approval by the TAMP, sources added.
The lease, for a period of 30 years, is subject to the usual conditions set by the port, sources said. The LNG terminal is expected to be in place by 2002 and will cost an estimated Rs 7,000 crore. It will be up by a consortium of companies led by GAIL. The other companies in the venture are Indian Oil Corporation, Oil and Natural Gas Commission and Gas de France. Puthuvypin is an island off the Ernakulam mainland and has been considered an ideal location for an LNG terminal to meet the fuel requirements for the several power projects coming up in Kerala.
According to sources, National Thermal Power Corporation (NTPC) has agreed to use LNG from the Kochi terminal for generation of 2,000 mw of power.
Copyright(c)1998 Indian Express Newspapers (Bombay) Ltd.
