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V. Sajeev Kumar

Government officials had informed that the sale of bunker could not qualify the requirement of an export sale under section 5 of the Central Sales Tax Act.

Kochi , Oct. 31

THE Cochin Port Trust has once again approached the Kerala Government on the matter of providing sales tax exemption to the international bunkering terminal proposed to be taken up by the port in Kochi harbour.

The issue of getting sales tax exemption was discussed in the meeting held by the Union Shipping Ministry last month and the matter has been taken up with the State Chief Secretary urging him to convene a meeting with the officials concerned for detailed deliberations and appropriate decisions in the matter.

The matter of sales tax/VAT exemption for bunker supply has been taken up with the State Government since 2001. However, the Government officials had informed that the sale of bunker could not qualify the requirement of an export sale under section 5 of the Central Sales Tax Act and, accordingly, the Government informed that the request of the port could not be allowed.

The port, on account of its strategic geographic location with proximity to international trunk trade routes, is proposing to set up a bunkering terminal catering to the requirements of international route ships. The terminal is proposed to be develop with private participation and will be set up at Puthuvypeen, an area near the entrance to Kochi harbour.

The expected investment by the operator for the initial and final phase of development is about Rs 20 crore and Rs 195 crore respectively.

The activities to be provided at the terminal include bunkering, lube oil supply, de-slopping, garbage collection, fresh water supply, ship repair, crew change, storage facilities etc. Necessary infrastructure and other facilities had to be provided by the project.

The port expects to get traffic of around one million tonnes during the initial phase, increasing to 10 million tonnes at the final stage of development. This will boost the economy of the region, as this is the first bunkering terminal to be set up in India, according to port officials.

The port had invited requests for qualification for the project to which responses were received from leading firms such as Indian Oil Corporation, Bharat Petroleum Corporation Ltd, Reliance Industries Ltd, Essar Shipping, FAL Fujairah, Indian Mollases Company etc.

Golf course planned: Meanwhile, the port has obtained approval from the State Government for the selection of GMG Golf Associates, Golf Plan, USA as architectural consultants for the international standard golf course at Kochi.

The port is awaiting the approval from the Shipping Ministry for port's participation in the joint venture company to be formed with Tourist Resorts - Kerala Ltd for the venture.

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