The Hindu Business Line : Good tidings for the New Year

AFTER the terrible impact of the tsunami on the lives and livelihoods of a significant section of Kerala's population, it is difficult to be overly cheerful about how this year is going to turn out. However, surprisingly enough, some recent happenings on the industrial front augur well for Kerala's immediate future.

The most important of these was the announcement last week that the Cabinet Committee on Economic Affairs (CCEA) had approved a revised proposal for setting up the Rs 2,118-crore international container transhipment terminal (ICTT) at Kochi port.

The contract for the project, to be implemented on a `build-operate-transfer' (BOT) basis, will be awarded to Dubai Ports International (DPI), the Finance Minister, P. Chidambaram, announced in New Delhi, after the meeting of the CCEA.

For its part, the Cochin Port Trust (CPT) has announced it is ready to sign the licence agreement with DPI for the proposed transhipment terminal by next week. The joy of the CPT Chairman, Jacob Thomas, was amply evident when he said he was delighted with the speed with which the CCEA had cleared the amendments suggested by the port trust to the original project proposals. He said that he expected the Dubai ports to take over the Rajiv Gandhi Container Terminal (RGCT) within six weeks of signing the agreement. The Dubai ports would need about another six weeks to move men and equipment to the new project site, he added.

The other good news relates to the long-awaited liquefied natural gas (LNG) terminal at Kochi. It was originally meant to be set up by Petronet LNG Ltd (PLL) along with the Dahej project about five years ago, but the subsequent troubles with Petronet stalled the project. Now it looks set to become a reality, as the Union Petroleum and Natural Gas Ministry has approved the project in principle.

Ras Laffan Liquefied Natural Gas Company Ltd, (RasGas) of Qatar will supply the LNG needed for the 2.5-million tonne per annum (MTPA) terminal in Kochi. The Gas Authority of India Limited (GAIL) is expected to transport the re-gasified gas from Kochi.

Yet another potentially encouraging project is that of the Dubai Internet City to set up its proposed `Smart City' in Kochi. The Rs 1,500-crore project is expected to be located near the Infopark at Kakkanad. The project will need around 1,000 acres, out of which 200 acres has already been identified. Once complete, the Smart City will be home to ventures in information technology and IT-enabled services (ITES), as well as telecom and media companies.

That all these activities are centred around Kochi is also appropriate since, as the long-serving commercial capital of the State, the city has been the lone star in the industrial desert of Kerala, an enviable position that will only get further enhanced by these latest developments. Also enviable is the position of Chief Minister Oommen Chandy during whose tenure these projects appear set to fructify. If that does indeed happen, he will probably go down as the Chief Minister who changed the industrial landscape of Kerala.

That reputation as architect of an industrial resurgence will get further credence now that he has donned the mantle of Minister for Information Technology as well.

As 2005 gets off to a not-so-happy start in the wake of the tsunami disaster, Keralites can only hope that the time is not too far away when they can forget the past and join in some celebration of an industrially healthy State.

The writer can be contacted at kgkumar@gmail.com

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