Finding it difficult to move ahead, the Cochin Port Trust (CPT) authorities are going to avail of a loan of `100 crore, for which the Central Government had given the green signal earlier. According to sources, the CPT will avail of the loan from the State Bank of India (SBI) by September.
Though the Centre had approved it, the Port Trust did not avail of it. However, the management could bring down the expenditure to an extent by introducing some austerity measures.
LIABILITY
The CPT plunged into deep financial crisis after it suffered an unprecedented increase in expenditure in improving the draft for the International Container Transshipment Terminal (ICTT). After the commissioning of ICTT, the Port has to spend about Rs 110 crore annually for maintenance dredging which was only `30 crore in the previous year.
“Though the government had granted permission earlier, we did not avail of that loan so far. However, the port would be in need of some additional funds from September which prompted us to avail of the amount. We would be able to use the amount for paying off salaries and meeting other immediate requirements, sources in the Port Trust said.
The CPT opted for the loan, after its hopes for some grant from the Central Government did not bear fruit. The CPT had sought a grant from the Central Government for three years to tide over this crisis, pointing out that similar support was being provided to Kolkata Port. But the government turned down this request.
Earlier, in 2010 the CPT borrowed Rs 100 crore from the Mumbai Port Trust. The provisions under Port Trusts Act allows ports to borrow money.
The CPT has been running at a loss since 2007 after Cochin Refinery’s oil tanker operations were shifted to outer sea from the Port terminal with the commissioning of the single Buoy Mooring facility in the offshore resulting in a `40-crore loss in its revenue annually.
Comments
0 comment