The Hindu Business Line : Paradip port makes changes in iron ore storage procedures

FACED with reports of irregularities in the utilisation of plots earmarked for storage of iron for exports, Paradip Port Trust (PPT) has brought about certain changes in relevant rules and procedures.

About two years ago, PPT earmarked 55 plots, each with an average size of 3,000 sq metres, for storage of iron ore by private exporters to facilitate their shipments and accordingly the allotments were made. The mineral converged at the plots either by rail or road for loading into ships manually.

Unfortunately, it was later revealed that about 15 plots lay idle, as the lessees could not execute the export orders for whatever reasons. The port authorities were upset. The very purpose of the allotment, i.e. to boost exports through the port, was defeated.

The situation soon changed for better (for the port). A new set of exporters having firm export orders in hand and confident of executing them properly approached the authorities for plots.

The authorities, having no more plots to offer, therefore allowed tie-up arrangement between these new set of confident exporters having no plots and those with plots allotted but unable to use them for the stipulated purpose. As per the arrangement, the idle plots could be used by the new set of exporters for storing their mineral.

However, the tie-up arrangement spawned unfair practices, according to port sources. A section of the lessees started making money from it virtually without doing anything. They allowed their plots to be used by others only on payment of premium amount.

A kind of zamindari system in respect of port land emerged without the port benefiting from it.

PPT authorities, therefore, have introduced some safeguards to prevent the alleged irregularities. First, each tie-up arrangement has to have a specific approval from the authorities concerned in the port.

Second, each such arrangement will be for a maximum of six months and any request for extension will not be entertained.

Third, the Railways has been told to accept indents for movement of iron ore to the port for such tie-up party only on receipt of specific requests in this regard from the port authorities.

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