Vizhinjam status change gets Kerala in trouble
Vizhinjam status change gets Kerala in trouble
NEW DELHI: The Kerala Government has landed in a soup by seeking major port status for Vizhinjam port as it eventually means tha..

NEW DELHI: The Kerala Government has landed in a soup by seeking ‘major port’ status for Vizhinjam port as it eventually means that the state will have to hand over control of the port to the Central Government.The state government had written a letter to the Shipping and Ports Ministry seeking investment for converting Vizhinjam port into a ‘major port.’ But, according to sources, the state government is now in a fix as it means losing control over the port administration. “The state government had written to us seeking financial assistance for converting Vizhinjam port into a major port. But, according to the rule, the Centre will invest only in ports which fall under the ‘Major Port’ category. If a port is deemed as a major one, then it will have to be directly under the control of the Central Government," a Shipping Ministry official said.According to him, the Centre will hold at least 51 per cent equity in all major ports.Apparently, the state Government did not know this clause when it applied for ‘Major Port’ status for Vizhinjam. "The Shipping Ministry has no problem in investing in Vizhinjam. If the state government wants investment and is hesitant to hand over control of the port to the Centre...then it may not work out," the official said.According to him, the state government has been asked to have a relook into the issue. “The state government will have to take a final call. We will send a team to Vizhinjam once there is more clarity on the issue," said the official.It is learnt that 31 shipping companies, including domestic majors like Shipping Corporation of India and Essar, have shown interest in the project. According to the official, granting the major port status would be crucial for Vizhinjam as the state government wants to develop it as a transshipment hub for containers as it boasts having the deepest natural draft among all ports in India with water depth of 18-22 m which does not require maintenance or capital dredging.

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