The Kolkata Port Trust (KoPT) on Monday expressed concern over the Finance Ministry’s proposal to phase out dredging subsidy to the reverine port facilities at Haldia and Kolkata.

According to R. P. S. Kahlon, Chairman, KoPT, the withdrawal of subsidy will reduce the draft, further impacting the cargo flow to KoPT’s docks at Haldia and Kolkata. The port system now suffers from low draft of 7-9 metres.

“It’s under discussion now. If it (Finance Ministry) decides to withdraw the dredging subsidy, the draft will be reduced further. There is a thinking at the Planning Commission…to seriously consider whether they will continue the dredging subsidy,” Kahlon said here.

He was addressing an interactive session on the growth prospects of KoPT organised by MCC Chamber of Commerce and Industry.

Kahlon also hinted that cancelling dredging subsidy might reduce the cargo flow by one-fourth of the nearly 40-million tonnes handled in FY13.

Last fiscal, KoPT received nearly Rs 500 crore subsidy for dredging, so as to maintain the draft in the face of high siltation.

The Union Government recently decided to phase out the subsidy by 5 per cent in FY14 and then 10 per cent every year. Kahlon, however, reiterated that KoPT did not get anything “in writing” about this development. He also pointed out that the proposed expansion projects at Salukhali (Haldia dock-II) and container terminal at Diamond Harbour have been aimed at mitigating the low-draft issue. “The projection (is) that cargo will be diverted (from the existing facilities) to the proposed container terminal facility and Haldia dock-II,” he said.

ayan.pramanik@thehindu.co.in

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