An official statement, quoting the letter on Sunday, said Patel had informed Vajapyee that Gujarat Maritime Board (GMB) proposed to develop Vadinar Port to handle cargo, the upcoming Essar oil terminal, and the State Government had initiated the process of setting up VADA for the purpose.

The Chief Minister has drawn Vajpayee's attention to the fact that the successive State governments had been requesting the Centre since 1986 to take the Vadinar Port management from KPT but the Centre had yet to respond.

Patel said the State Government had, at the Centre's request, given Vadinar Port to KPT in 1977 to enable it to install an off-shore import crude oil terminal for Indian Oil Corporation for the two proposed oil refineries in the region, foregoing considerable revenue to the State. He said it was clearly stated in the understanding between the State Government and the Centre then that an off-shore crude oil terminal would be set up that year and KPT would be not handle other cargo.