Wednesday, July 14, 2010

CPT to seek Rs.100-crore loan from Mumbai port

KOCHI: Cochin Port Trust has received Union Government sanction to avail a Rs. 100-crore loan from Mumbai Port Trust for developmental activities related to the International Container Transshipment Terminal (ICTT) on Vallarpadam Island.

Sources in the Port Trust said on Wednesday that the Port Trusts cash flow had been severely affected because of several factors, including the doubling of expenses in maintenance dredging for the Vallarpadam project.

The maintenance dredging cost had gone up to around Rs. 100 crore this year compared to the Rs. 40 to 50 crore during the last year, sources added. Besdies, the Cochin Port Trust bought new tugs at a cost of more than Rs. 80 crore, which also ate into the cash available for developmental activities.

The sources pointed out that under the Major Port Trusts Act, ports are allowed to borrow money.

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