Bijay Patnaik

Bhubaneswar, June 20: The state government heaved a sigh of relief as the Centre assured it that Calcutta Port Trust (CPT) would not claim exclusive rights over the Kanika Islands in the Bay of Bengal.

Though the Kanika Islands fall within Odisha’s boundary, the CPT, which was looking to expand, had succeeded in persuading the Union shipping ministry to accord it the right to use the area for transloading.

Chief secretary Bijay Patnaik said the issue was settled following a meeting between the officials of Odisha government and the CPT in New Delhi on Tuesday in the presence of Union shipping secretary P.K. Sinha. “We were assured that the CPT won’t stake claim over the Kanika Islands. However, they can use the islands for transloading with the permission of the Paradip Port Trust (PPT).”

CPT had earlier evinced interest in getting exclusive rights of transloading on the Kanika Islands as its own port area was getting increasingly silted making the entry of big ships difficult. This had necessitated the expansion of the port.

In November 2010, the ministry of shipping had issued a notification extending the revised limits of CPT more than 200km south of Haldia into the Bay of Bengal covering a total area of 28,646 square kilometres. This would effectively have blocked the north Odisha coast, where seven new ports, including the Dhamra port, are coming up.

Irked, the Odisha government had lodged a strong protest with the ministry of shipping alleging that the move amounted to encroaching upon its territory and stunting its maritime development. In February 2011, chief minister Naveen Patnaik had met the then Union minister of shipping G.K. Vasan in New Delhi and sought quashing of the notification.

Naba Niraman Manch, a voluntary organisation, had filed a petition in Orissa High Court and the court had rejected the Union shipping ministry’s notification. Later, the government of India and CPT had knocked on the doors of the Supreme Court. The Odisha government and Dhamra Port Trust had also moved the apex court. The top court asked both states to resolve the issue amicably under the supervision of the Union government.

Commerce and transport minister Subrat Tarai said: “Transloading operations between May 1 to September 30 every year will take place within the limits of PPT. The CPT can use the facility only after obtaining permission from PPT. The ministry of shipping will soon issue a notification to this effect.”

PPT chairman S.S. Mishra said: “We are in touch with Calcutta Port Trust and the government of India to work out the modalities for transloading operations. However, these will take place within our limits. All should wait till the modalities are finalised.”

Sources at Calcutta Port Trust said the compromise formula would not hurt its interest. Earlier, there was suggestion that the area for transloading would be under CPT but there would be a limit both on the volume and time. CPT was not allowed to transload more than 2.5 million tonne of cargo and the operation would be limited only to five months of the year.

In the new compromise made, there will be no limit on either time or tonnage, even though the area would be under Paradip Port Trust. The shipping ministry was confident that the new model would work as both CPT and Paradip fall in its jurisdiction.

The new transloading spot is of two nautical miles radius area, about 90 nautical miles south of Haldia with 78 hours of sailing time from the south Bengal port.

The ministry has noted that it would give utmost importance to the commercial viability of the transloading operation of CPT, indicating Paradip would charge reasonable fees. Moreover, Paradip is unlikely to create impediments for CPT since it has to follow ministry of shipping directives.

“The situation is win-win for both CPT and Paradip,” CPT chairman R.P.S. Kahlon said.

Additional reporting by Sambit Saha in Calcutta