The Union Shipping Ministry has convened a high-level meeting, to be held shortly, to resolve the impasse created by one of its earlier decisions. In November 2010, the Ministry, in a notification, had extended the limit of the Kolkata Port Trust (KoPT) to cover certain stretches of the Bay of Bengal bordering Orissa. The Orissa Government, reportedly at the prodding of promoters of some private ports in the State, reacted sharply to it.

The Ministry’s notification, if implemented, would have given Kolkata Port Trust the right to undertake cargo handling operation in Kanika Sands, an island off the Orissa coast.

A few of Orrisa’s private ports in the vicinity, some already in operation and others still to start, apprehended that their future would be at stake if KoPT was allowed to operate on Kanika Sands and, therefore, strongly urged the State Government to fight it out with the Centre.

The argument of the Ministry and KoPT, on the other hand, was that international waters could not be the exclusive preserve of any State Government; the Union Government alone was authorised to take a decision on its utilisation. The matter went up to the Supreme Court.

The Delhi meeting is being held following a directive from the apex court that the parties involved in the dispute should try to sort out the issue amongst themselves. Accordingly, the meeting is to be attended by officials of the Governments of Orissa and West Bengal and KoPT. The representatives of two private ports in Orissa, namely, Dhamra port and Subarnarekha port, are also likely to be present at the proposed meeting, it is learnt.

The contention of Dhamra port, promoted jointly by Tata Steel and L&T, has been that Kanika Sands being located virtually next door, any additional cargo handling facility there would pose a threat to it. The location of Subarnarekha port, as its promoter the Chennai-based Creative Port Development Pvt Ltd, has pointed out, falls within the extended jurisdiction of Kolkata Port Trust and, therefore, such an extension was unacceptable.

Interestingly, the West Bengal Government became party to the case at a much later stage, presumably at the insistence of KoPT. While the outcome of the Delhi meeting is anybody’s guess, there are apprehensions that the decision might not exactly favour Kolkata port, more so in view of the present equation between the Centre and the State. In that case, the Ministry would be going back on its own earlier decision.

Related Topics