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PPP MODEL TO FINANCE MPT’s MECHANICAL ORE HANDLING PLANT ONLY AS LAST
RESORT. VASAN TELLS SHANTARAM
Union Minister of Shipping Shri G.K.Vasan, informed Mr Shantaram Naik
M.P. that Mormugao Port Trust is trying to find alternative source of
funding to develop its Mechanical Ore Handling Plant by itself, in the
interest of the port and its employees, and that, only if it is not
feasible then the MPT will go for Public Private Partnership(PPP) model,
as a last resort.
Mr Vasan has sent this reply to Mr Naik, last week, in response to his
Special Mention made in the Rajya Sabha in the last monsoon session in
which Mr Naik had strongly opposed privatization of Plant and suggested
that MPT should develop it by themselves by finding alternative source
of funding.
Mr Vasan says in his reply that Mechanical Ore Handing Plant (MOHP)
Mormugao Port Trust was commissioned in 1979. As the equipments in the
MOHP had already outlived its service life norm of 20 years MoPT had
taken up replacement of equipments in phases commencing in the years 2002.
Replacement of the eight Barges Unloaders was completed by 2007-08 and
replacement of all the three stackers is in progress along with the
replacement of the conveyors feeding them, minister said.
Mr Vasan further said in his letter that the remaining equipment
comprising two Shiploaders, two reclaimers, six Shipping Conveyors, 7
Receiving conveyors, Continuous barge unloader and two Sub-station also
require immediate replacement as these equipment have been in operation
for more than 32 years.
The original equipment Manufacturer (OME),M/s Thyssenkrupp,
Fordertechnick, Germany which had studied the Structural Stability of
the existing machines have also reported that the machines are in danger
of Sudden fall and will have to be pulled out of operation immediately
in such situation. There has already been a casualty in July, 2007 when
the boom of the Crane collapsed. However, Based on the Study carried out
by M/s Sandvik Asia limited, a major bulk handling equipment
manufacturer has been operating the machines at 70% rated capacity. The
estimated cost of the equipment to be replaced is also massive, minister
said.
Minister said that it may be appreciated that MOHP has outlived its life
and the cost of maintenance is very high. The plant has already incurred
huge losses in the last 5 years. During 2010-11, s against the total
income of Rs.92.22 crores the expenditure on MoHP was Rs.144.51 crores
resulting in a deficit of Rs.52.291 Crores.
Minister further informed Mr Naik that since MoHP had taken up several
works to be funded from the port’s internal resources, the port decided
to obtain loan from Japan International Co-operation Agency (JICA).
While the project was at its advanced Stage, i.e after four appraisal
missions by JICA, signing of minutes of Discussions on 1.10.2011 between
JAICA Ministry and the Port obtaining approval of PIB on 15.2.2011 and
draft Note for approval of the competent authority under consideration,
Japan was struck with severe calamity of tsunami...
It was then intimated by Department of Economic Affairs of the
Government, that there is an air of uncertainty about JICA commitment
for FY-2011 and that other sources for availing the loan may be
explored, minister said.
Mr Vasan informed Mr Naik that since the prospects of obtaining loan
from JIA seemed bleak, Ministry of Shipping has advised MoPT to consider
implementing the project by availing loan from other sources or through
Public Private Partnership (PPP) mode by resolving amicably the issue of
redeployment of workers.
MPT has explored various options for implementing the project. They have
approached other Major ports to Spare Surplus money/funds for
implementing the project, which has not yield any success. The port has
also analyzed the pros and cons of availing commercial loan but
considering the ports delicate financial position this has not been
considered the port’ proposition, Minister said
RELEASED THROUGH THE OFFICE OF
SHRI SHANTARAM NAIK M.P
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