File picture of a ship at Paradip port

Paradip, Aug. 25: Paradip Port Trust authorities have terminated the permits of 59 cargo plots within the port’s prohibited area limits.

The high court had recently censured senior port officials for granting plots to exporters without following the auction and tender-bidding process, said official sources.

The plots within the prohibited area are much sought-after by exporters for cargo handling. With a 1,000sqft plot fetching Rs 2-3 crore through auction, the plot allotment is regarded as a major revenue generation source for ports.

However, specific allotments made by port trust in the past without the tender-bidding and auction gave rise to a controversy. The port lost in terms of revenue because of such allotments. Later, a writ petition had been filed seeking Orissa High Court’s intervention on the alleged acts of omission and commission.

“Following the high court order, we have withdrawn permit licences for 59 allotted cargo plots within the port’s restricted areas. We are putting up these plots for tender auction bidding,” said chairman of the port trust S. Ananth Kumar Bose.

Citing provisions of Section 111 of Major Ports Act, 1963, and land policy of major ports, 2010, framed by the Centre, the court had ordered for cancellation of plot allotments done without a tender-and-auction process, said sources.

Land within these areas shall be given on a licence basis up to 11 months. The licences may be granted by inviting tenders. Any concession shall be given with the approval of the board. As the port plot is public property, any allotment without auction was an act of impropriety, the court said.