Development of Rs 7,500 cr outer harbour to enhance VOC port capacity

Chennai:

The development of Outer Harbour in V O Chidambaranar Port in Tuticorin at the estimated cost of Rs 7,500 crores will enhance the additional capacity of port by 42 Million Metric Tonne Per Annum (MMTPA), according to Union Shipping Minister G K Vasan.

Currently, VOC port handles 33.3 MMTPA of cargo and has plans to increase it to 85 MMTPA in the next two years, said deputy chairman of VOC port S Natarajan. He said following the announcement of Rs 7,500 crore outer harbour, the port will have additional capacity of 42 MMTPA.

Vasan thanked UPA chairperson Sonia Gandhi, Prime Minister Manmohan Singh and Finance Minister P Chidambaram for the development of two new major Ports, one in West Bengal and other in Andhra Pradesh.  He said this will add 100 MMTPA capacities to the major port trusts.

Vasan said to set up of 6th National Waterway in Lakhipur-Bhanga stretch of river Barak in Assam willgive a fillip to inland water transport in North East.  The 12th Plan has an adequate outlay capital works including dredging on National Waterways.

He also hailed the budget for exempting ships and vessels from Excise Duty.  “This will be a major relief to the ship building industry.  Consequently there will be no CVD on imported ships and vessels.  This will benefit both the shipping as well as ship building industry,” he added.

Vasan said the introduction of investment allowance for new investments of Rs 100 crore and more in plant and Machinery during the period April 2013 to March 2015 will be a driver to augment the private sector investment in ports.