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P. Manoj

Though the Finance Ministry has opposed the bail-out plan, the Shipping Ministry is confident of securing Cabinet approval.

New Delhi , Feb. 3

THE Shipping Ministry is expected to push the bailout proposal for the beleaguered Seamen's Provident Fund (SPF) and seek an in-principle approval for the Sagar Mala project when the Union Cabinet meets on Wednesday for the last time before the Lok Sabha is dissolved on February 6.

The SPF had lost Rs 92.78 crore in the 2002 gilts scam involving stock-broker Ketan Parekh. About Rs 100 crore of SPF money were given to brokers for making investments in Government-authorised securities, but the brokers disappeared without handing over possession of the securities to the SPF Commissioner.

On advice from the Prime Minister's Office (PMO), the Shipping Ministry has prepared a Cabinet note seeking a one-time grant of Rs 93 crore from the Government to recoup the loss incurred by the SPF.

Though the Finance Ministry has opposed the bail-out plan, the Shipping Ministry is confident of securing Cabinet approval with the blessings of the PMO to refund the SPF to the tune of Rs 93 crore, Government sources said.

"The SPF is made up of hard-earned contributions from about 26,500 seafarers as well as employers. It is only fair that the Government gives a one-time grant to make good the loss caused to the Fund to restore the credibility so that the SPF can survive and run smoothly," he added.

The Central Bureau of Investigation (CBI) has filed charge-sheets against the prime accused in the scam including the former Commissioner of the SPF Organisation, Mr A.K. Gond.

The Cabinet is also expected to take-up for consideration the rough out-line of the Sagar Mala project involving the integrated development of ports, shipping, inland water transport, coastal shipping, ship building and maritime training.

The Sagar Mala project involving an outlay of nearly Rs 1,00,000 crore was announced by the Prime Minister on August 15 last.

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