The Hindu Business Line : JNPT seeks Govt assistance to hasten dredging operations

IN an effort to hasten the implementation of the already-delayed Rs 1,240 crore channel-deepening project, the Jawaharlal Nehru Port Trust (JNPT) has sought the Government's financial participation in the execution of the dredging operations.

JNPT has submitted a proposal to the Government, suggesting that it convert the outstanding interest on the loans the port had earlier taken into equity for implementation of the project.

After retiring a bulk of the loans, JNPT still has an interest outstanding of Rs 727 crore payable to the Government.

"As the project involves huge investments, we have suggested that the Government treat this outstanding as its equity in the project," according to Mr Ravi Budhiraja, Chairman, JNPT.

He told Business Line that the Government was examining the proposal and the project would be taken up as soon as it was cleared.

"Whatever may be the outcome, we will be taking up the project and, if necessary, explore other means of financing," he said.

The channel deepening project has assumed significance for the port, as it was not being able to accommodate larger vessels due to draft restrictions.

The first phase of the project envisages an investment of Rs 640 crore for increasing the draft of the channel from the existing 12.5 m to 14 m, while the second phase would require Rs 1,600 crore for increasing the draft to 16 m.

On the fourth container terminal project at the port, Mr Budhiraja said the port was in the process of finalising the consultants for undertaking the techno-economic feasibility study.

"About four or five reputed consultants have submitted their bids and we will have the successful bidder in place within the next few days. The consultant will have to submit their report within six months," he said.

Regarding the third container terminal, he said work had been started and the private operator was expected to commence operations from early 2006.

The berth will be adding a container handling capacity of 1.32 million TEUs to the port. In the first eight months of the current fiscal, the port, including the P&O operated Nhava Sheva International Container Terminal (NSICT), handled 1.57 million TEUs, as against 2.2 million TEUs handled during the whole of last fiscal.

Asked about the congestion problem, the JNPT Chairman said the problem had eased after a string of de-congestion measures, implemented during the last two months.

"Of course, this period is generally considered to be a lean period in terms of traffic flow. But the flow is expected to increase in the coming months and we are gearing up to avoid congestion-related problems," he pointed out.

The pendancy at the JNPT berth currently is about 400 TEUs, while at NSICT it is less than 1,000 TEUs.