The Hindu Business Line : Change of helmsman sends Kakinada port plans adrift

WITH change of guard in Hyderabad, it remains to be seen what line the new Congress-led Government takes on the development of the Kakinada ports — the old anchorage as well as the newdeep-water facility — besides the projects planned by the outgoing Telugu Desam Party, such as the mega LNG terminal project.

The Kakinada port, under the control of the State government, has been a bone of contention between the TDP and the Congress during the past nine years of the former's rule.

The Congress has been critical of the decisions of the TDP Government on the Kakinada port, especially the one to privatise the operation of the new port and the concessions given to the private operator — Kakinada Seaports Ltd — when the latter was unable to pay even the minimum guaranteed amount.

The new port, with three berths, was constructed with Rs 325- crore Asian Development Bank loan, and as a maiden attempt at port privatisation, the TDP Government handed it over to Kakinada Seaports Ltd. But, so far, the experience has not been a happy one either for the private operator or the State government. The port has neither been able to generate new cargoes nor garner enough revenues to pay the minimum guaranteed amount to the State government.

In the past three years, there have been frequent disputes between the old anchorage port workers and the new port authorities over alleged cargo diversion. The old port workers have often alleged that the new port has been trying, under one guise or the other, to divert traditional cargoes meant to be handled only at the old port.

Congress leaders, including Mr M. Gopalakrishna, the newly-elected party MLA from Kakinada, had during the campaigning said that the agreement between the State Government and the Kakinada Seaports Ltd would be reviewed, if the party was voted to power. However, whether it was mere poll rhetoric or a serious thought, remains to be seen.

Another mega project proposed by the TDP, but which has not got off, is the LNG terminal project. Initially, it was proposed to be set up on the Hope Island, but the Union Ministry of Environment and Forests shot it down and the TDP Government decided to site it on-shore. But not much headway has been made in the last three years.

It now remains to be seen what the Congress does about the project, which involves an investment of Rs 18,000 crore in three/four phases. Doubts over the project was raised because of the huge gas finds in the Krishna-Godavari basin.