Centre may rescue sinking Port Trust

KOCHI: The Union Ministry of Shipping is looking into the possibilities of providing financial aid to the Cochin Port Trust (CPT) which is reeling under acute financial crisis.The CPT had sought a financial aid of Rs 150 crore from the Central government. “The ministry is looking into the possibilities of providing the aid in a way other than operational grant,” said K Mohandas, Union Secretary of Shipping. The port management, as part of efforts to overcome the financial crisis, had submitted a request to the Union Ministry of Shipping either to grant Rs 150 crore or to permission to avail of a loan from the State Bank of India.However, the request for availing a loan has not been sanctioned yet. “Availing loan for a productive investment is different from getting it for day-to- day expense of the Port Trust.However, we are looking into the different aspects of port’s plea,” Mohandas said.The net loss of the Cochin Port is likely to touch Rs 262 crore by March 2012 compared to that of Rs 86 crore last year. This year, the huge loss is mainly attributed to the cost of capital dredging done to achieve a depth of 14.5 metres.The port management has already introduced financial discipline by announcing strict austerity measures. The trade unions at the port have strongly come up againist the move to freeze the benefits enjoyed by them.Though it has been one year after the International Container Transshipment Terminal at Vallarpadam was commissioned, the Port Trust never got the expected income from it with the ICTT failing to attract vessels as expected owing to various reasons.As per the agreement with the Dubai Port World, the operator of ICTT, one third of the total income generated there should go to the port.The labour trustees and trade unions of the Cochin Port Trust who met the Union Shipping secretary last week had also raised the demand for an aid from the Central government