The Hindu Business Line : Reliance, Mumbai port spar over right of sea way

Mumbai, Sept. 7 A dispute is brewing in between the Mumbai Port and Reliance Industries Ltd (RIL) on payment of royalty for the right of seaway for the latter’s proposed Rewas Port.

Reliance is setting up a port at Rewas, nearly 10 nautical miles away from the Mumbai harbour, to provide a sea-link to its proposed Special Economic Zone, at a cost of about Rs 5,000 crore.

Part of the approach channel to the Reliance port, said to be about 17 km, passes through the Mumbai port territorial water. For the right of use of this harbour water, the Mumbai Port wants certain compensation from the proposed port.

Reliance is understood to be taking up the matter through the Maharashtra Maritime Board, which also holds minority stake in the port.

According to Mumbai Port officials, payment for the right of use of waterways is not something new. The Jawaharlal Nehru Port has been paying a percentage of its revenue to the Mumbai port for using its channel. ONGC also pays a charge to Mumbai port for its pipeline passing though its water.

Relianceis yet to communicate any details of the project to Mumbai port, said an official. “ If their (Rewas) approach channel transits through our water, that has future implication on our port and we cannot just allow that free of cost, he said.

Reliance’s view, according to sources, is that when a port is allotted to a private party by the government for development, it should have the right of (sea) way to the port. When the Mumbai port started years ago it was the only port and its water limit was decided then.

A source, however, said Reliance’s strategy would be to negotiate with the Mumbai port and bring down the payment. Reliance has recently acquired the controlling state in the Rewas port from its original promoters Amma Lines. It is now re-doing the entire plan and the port is scheduled to be operational in two years. The company said it would be floating tenders shortly for dredging.

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