The Kerala Ports Department will sign an agreement with the Lakshadweep Development Council (LDC) for the development of an exclusive berth at Beypore port near here. This is to enable the movement of passengers and cargo to and from the island.
The agreement, which envisages construction of a 200-metre berth, is scheduled to be signed on January 12, according to Mr K. Babu, Minister for Ports and Excise.
The Minister said discussions have already been held with the law and finance ministries on leasing out the berth to LDC. The development of the berth, which has been originally estimated to cost Rs 20 crore, is the first phase of an overall development plan for Beypore port, which has been entrusted with INKEL Ltd, the Government-promoted infrastructure development agency.
INKEL Ltd has already submitted a detailed report to the Ports Department for the development of the port. This followed the failure of the department to bring in a private sector developer through a global tender floated last year. The port was proposed to be developed through public-private partnership (PPP) route.
The department had fixed the project cost at around Rs 163 crore when it floated the tender. It is learnt that INKEL had estimated a project outlay of Rs 157 crore in its initial report the department.
The development project proposes deepening of the draft from the existing four metres to 12 metres to help larger vessels to call on the port. The department is expected to enter into an agreement with INKEL soon, according to officials.