AP cancels jetty project order to Mumbai firm

The Andhra Pradesh Government has cancelled the order given by the State Director of Ports to Mumbai-based Urmila Project Services, the heavy lift and transportation division of Ardeshir B Cursetjee & Sons, to construct a jetty at Machilipatnam Port in the State.

The State Government cancelled the order on the ground that according to the concession agreement with the Machilipatnam Port Ltd, the private operator of the port, it has exclusive rights over the port within 30 km on either side.

“Therefore, the Director of Ports, Kakinada, has no power to grant permission to a third party to develop cargo handling facilities within the exclusive zone of Machilipatnam port,” a State Government order said.

Govt in a spot

Strangely, the State Government had no inkling that a third party was carrying out the jetty construction project at the port, until the private port operator brought to its notice that “some one” is carrying out survey at the Machilipatnam Old Port for construction of jetty to handle ODC (Over Dimensional Cargo).

It later turned out that the State Director of Ports in March this year had given permission to the Machilipatnam Old Port authorities to take up modification and construction of the Ro-Ro jetty at the anchorage port, claiming that this port is still under its administrative control.

Subsequently, the matter reached the High Court, which in its interim order on April 20, 2011, observed that the order of the Director of Ports to grant permission for the jetty construction “appears to be arbitrary and illegal, being contrary to the terms and conditions agreed upon.”

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