The Hindu Business Line : AP Govt to waive Rs 42-cr sales tax — Hindustan Shipyard likely to be revived: Baalu

THE Hindustan Shipyard in Visakhapatnam is likely to be revived with the Andhra Pradesh Government agreeing to waive Rs 42 crore of sales tax for the sick unit.

The Ministry of Shipping is also considering contributing another Rs 45-50 crore for the unit's rehabilitation, Mr T.R. Baalu, Union Minister for Shipping, Road Transport and Highways, said. There is every possibility of a revival, he said, ruling out privatising the unit.

The Cochin Shipyard has also shown good performance and it gave Rs 8 crore as dividend last year. This was the first dividend after 16 years, he told newspersons on Saturday at the Ennore port.

On infrastructure expansion at various ports, Mr Baalu said he had recently instructed all port trust chairmen to go for "major expansion" in ports. This, in turn, will gear up the economy, he said. "Take professional decisions, and it will be endorsed by the Shipping Ministry," he told the chairmen.

He cited Tuticorin Port Trust's Rs 830-crore expansion plan of the inner harbour as an example. "There is no embargo on privatisation, and most of the new terminals are under privatisation," he said.

When asked whether P&O Ports would be allowed to participate in the proposed second container terminal at Chennai port, Mr Baalu said the existing private operator is not allowed to apply for the second terminal in the same port. However, the private operator can apply for the third terminal.

The Suez Canal Authority, which manages the Suez Canal, is willing to provide technical expertise, including training for tug pilots, for the Sethusamudram Ship Canal Project. A memorandum of understanding in this regard is to be signed soon between the Ministry of Shipping and the Authority, he said.

The Panama Canal Authority has also shown a similar interest in training people in the maritime sector, he said.

The 5,846-km-long Golden Quadrilateral road project is to be completed by December 2005, and the North-East-South-West corridor by December 2007, Mr Baalu said. In the Golden Quadrilateral project, 92 per cent of work is completed, and the rest 8 per cent is getting delayed due to court cases, he said.