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Rajya Sabha
Government sanction to the proposal of Cochin Port Trust, as envisaged under section 42(3) of Major Port Trusts Act, 1963, for award of the contract for development and operation of International Container Trans-shipment Terminal (ICTT) on Build, Operate & Transfer (BOT) basis to M/s. Dubai Port International (DPI), Dubai, UAE was communicated to Cochin Port Trust on 9th September, 2004. The validity of the bid by M/s. DPI for the project was due to expire on 20th October, 2004. Cochin Port Trust issued the Letter of Intent (LoI) for the project to M/s. DPI on 16th September, 2004. Thus there has been no delay on the part of the Government in sanctioning the project. DPI has confirmed its acceptance of LoI on 15.10.2004, subject to certain conditions.
The draft License Agreement for the project, as at present, envisages two licenses under the same Agreement, one for the operation and management of existing Rajiv Gandhi Container Terminal (RGCT) for a maximum period of 8 &1/2 years from the date of the Agreement and the other for the development, construction, operation and management of ICTT on BOT basis for a period of 30 years commencing from the Date of Commencement of licence period for ICTT. The Licensee is not obliged to commence construction of ICTT until achievement of threshold volume of traffic of 4 lakh Twenty feet Equivalent Units (TEUs) per annum at RGCT even if the Port Trust fulfills all the conditions precedent on its part as set out in the draft License Agreement. However, pursuant to the directions of the Government that further action may be taken to expeditiously start the work on the project, Cochin Port Trust, after consultations with M/s. DPI, has approached the Department of Shipping on 27.11.04 for approval to the revised draft License Agreement which, inter-alia, envisages commencement of construction of ICTT not later than 2 years from the date of handing over of RGCT subject to the Port Trust fulfilling the conditions precedent on its part as set out in the revised draft License Agreement and commissioning of ICTT not later than 2 years from the date of commencement of construction.
The Government is aware that a portion of Indian origin/bound container traffic is transshipped in ports outside India. Government is committed to the development of infrastructure in Indian Ports including at ICTT at Cochin Port so as to reduce transshipment outside India.
This information was given in the Rajya Sabha today in an oral reply by the Minister of Shipping, Road Transport and Highways, Shri T.R.Baalu.
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