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The State government has created a Coastal Shipping Promotion Fund in line with its professed aim to promote coastal shipping as a thrust area.
The corpus of the fund is Rs 300 crore, according to K. Babu, Minister for Ports and Fisheries.
An initial allotment of Rs 3 crore has already been made to this fund, he said while addressing the 15th meeting of the Maritime State Development Council in Bangalore.
The aim is to divert at least 20 per cent of cargo by 2015 and 40 per cent of cargo and passenger by 2020. The Coastal Shipping Project has officially been flagged off at Kollam Port last weekend.
In the first stage, containers will be transported between Kollam and the Vallarpadam International Container Transhipment Terminal.
Later, it will be operated between ports like Vizhinjam, Beypore Kodungallur and Azhikkal also, the Minister added.
INCENTIVES AVAILABLE
For attracting more cargo into this mode, an incentive at Rs1 per tonne/km for cargo and Rs1 per passenger km has been declared for a period of one along the coastal stretch.
The State has 17 notified non-major ports dotting the 590 mm coast line, the Minister said.
Of these, Azhikkal (Kannur); Beypore (Kozhikode); Ponnani; Kodungallur; Alappuzha; Kollam; and Vizhinjam are in various stages of development.
PPP mode has been adopted for the purpose. ABG Cements has shown interest in developing a cement terminal at Azhikkal at a cost of Rs 170 crore.
Other modules such as a multi-purpose terminal; a container handling terminal; ship repairing facility and an LPG terminal also are being planned at Azhikkal.
LAKSHADWEEP FACILITY
At Beypore, the Lakshadweep Administration will construct own facility for operating ships linking the mainland. The environment impact assessment study is progressing.
As for Ponnani, environment clearances have been obtained from the Centre, State Government and the Kerala Pollution Control Board.
The construction work is expected to commence next month, after signing the lease agreement.
We propose to use Kodungallur port as a link between the coastal waterway and inland water way no.3. A river-sea terminal with repair facility is being planned at Kodungalloor.
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