The Hindu Business Line : Cochin Port seeks nod for bunkering project

Owing to its strategic location, with proximity to international trunk trade routes, the port proposes to set up a bunkering terminal catering to international route ships.

Kochi June 6 The Cochin Port Trust has sought the approval of the Public Private Partnership Appraisal Committee (PPPAC) under the Planning Commission for the proposed international bunkering terminal project following the Kerala Government's approval to reduce VAT rates for bunkers.

The Port Chairman, Mr N. Ramachandran, told Business Line that the State Government had agreed to reduce the VAT rate for bunkers supplied to foreign-going vessels to 0.5 per cent, which, according to him, is a substantial reduction and fully satisfies the port's position.

The case has been referred to the PPPAC, which has to approve the project before going in for tender. Bid documents are now being prepared to invite `request for qualification' after receipt of the in-principle approval, he said.

Owing to its strategic location, with proximity to international trunk trade routes, the port proposes to set up a bunkering terminal catering to international route ships.

The total investment for the project with an initial capacity of 1.5 million tonnes per annum and an ultimate capacity of 5 million tonnes per annum is Rs 95 crore.

However, the issue of VAT exemption for the bunker applied to foreign-going vessels was under correspondence with the Kerala Government for the last few years.

Pvt participation

The terminal is proposed to be developed with private participation at Puthuvypeen, near the entrance to Kochi Harbour.

It would offer bunkering, lube oil supply, garbage collection, fresh water supply, ship repair, crew change and storage facilities among other services.

Sources in the shipping fraternity point out that any port offering a bunkering facility is in a position to attract ships and thus earn revenue.