The Hindu Business Line : Row over transloading operation at Kanika Sands near Orissa

The issue of launching transloading operation in the Kanika Sands, an island off the Orissa coast, has surfaced again. The Orissa Government is believed to have suggested to the Union Government that those keen to undertake transloading of containers or bulk cargoes in the Kanika Sands, which is located within the limits of Bahubalpur port, a minor port in Orissa, should get in touch with the authorities concerned in the State Government.

Inquiries reveal that some private firms, in possession of a copy of the Orissa Government’s letter to the Centre, are believed to have approached Steel Authority of India Ltd seeking support for undertaking the operation.

Earlier, the Kolkata Port Trust too had urged SAIL and Tata Steel to extend a similar support.

There had been a good deal of controversy in the past over transloading operation at Kanika Sands. Initially, the Kolkata Port Trust showed interest to handle large vessels unable to call either at Kolkata Dock or Haldia Dock due to the poor navigability of the Hooghly river. However, Kolkata port’s move infuriated the Orissa Government which reacted sharply to it pointing out that the location being within the territorial jurisdiction of the State, there was no way Kolkata port could undertake the operation on its own without the approval of the Orissa Government.

The Union Government then constituted a committee comprising the Chief Secretaries of the Governments of West Bengal and Orissa and the Chairman of Kolkata Port Trust. But not a single meeting of the committee could be held as the Orissa Government decided to boycott it. There was nothing to discuss, the Orissa Government made it clear.

The issue was again raised to the new shipping secretary a few weeks ago when he visited the Kolkata port, with the request to sort out the issue .

Meanwhile inquiries reveal that the Orissa Government has already signed an agreement with Dhamra Port Company, promoted jointly by Tata Steel and L&T, to launch a port at Dhamra, near Bhadrak in Orissa, prohibiting creation of any new port facility within 25-km radius of Dhamra port till it has reached the saturation point. Part of Kanika Sands falls within the stipulated radius, it is learnt.

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