The Hindu Business Line : Concern over delay in tax sops to CPT Bunkering Terminal

The shipping fraternity in Kochi are worried over the procedural delay in getting clearance from the Centre for tax exemption to the ambitious Bunkering Terminal project of the Cochin Port Trust.

Sources in the port said though the State Government had issued sales tax exemption for the project in the State Budget, it had forwarded the proposal to the Union Commerce Ministry for approval as the project involves transaction of fuel and other categories of oils to foreign going vessels.

It is pointed out that the State Government would be in a position to issue notification in for tax exemption only after the Centre clears the proposal in this regard.

When contacted, the State Finance Minister, Dr Thomas Issac, told Business Line that the Government had written to the Centre to include fuel oil in the category of commodities exempted from VAT. This would help the State to provide tax exemption for the proposed bunkering terminal. Unless the Centre provide the exemption, the State would not be in a position to give tax exemption to the Bunkering Terminal as the former could penalise the State Government for reduction in tax collection, he said adding, that the Government has also urged the Centre to consider tax exemption on similar lines with that of air turbine fuel (ATF).

A senior port official said the global tender for the project could be invited only after the State Government issues the concession notification. The Rs 195-crore project, which is to be set up at Puthuvypeen, will be attractive only if the State Government grants certain concessions for the transactions at the terminal, he said.

The tax exemption is highly imperative to gain an edge over the international competitors in the field of bunkering supply to international routes ships. As many as eight bidders have submitted application for pre-qualification and the activities proposed under the project included bunkering, lube oil supply, de-slopping, garbage collection, fresh water supply, ship repair, crew change, storage facilities etc.

Sources in the shipping circle said the non co-operative attitude of the regulatory agencies in giving various exemptions to the project would affect the prospect of Kochi, which is the most suitable port to commence the bunkering terminal on account of its close proximity to international sea route.

Unless these regulatory mechanisms of inspection become proactive and necessary concessions are given, these types of lucrative enterprise will never take root on Indian shores. Kochi will lose an historic opportunity to develop itself as an international bunkering port along with the prestigious international container transhipment terminal.

With the deepening of the port channel to 12.5 metres, it is all the more necessary to diversify the areas, which will add synergy to utilisation of developing infrastructure, the sources added.

More Stories on : Shipping | New Projects

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Indian to buy aircraft after 12 years

Concern over delay in tax sops to CPT Bunkering Terminal

NF Rly not to be hit by Numaligarh refinery pipeline

Rlys may not meet container operators' demand

Konkan Rly raises Rs 350 cr through bonds

Railways to set up chair at IIM-Ahmedabad: Lalu