With the Union government tweaking the rules of funding fisheries projects, the future of the harbours planned at Kulai and Hejmady in Udupi district have become uncertain.
When the projects were envisaged, the Union government was, as was the policy of the time, expected to pay up to 75 per cent of the project cost – the rest of it was to be borne by the State government. “However, the new government has changed this to 40 per cent by the Centre and 60 per cent by the State. The State doesn’t have the money to pay most of the project costs,” Minister of State for Fisheries K. Abhayachandra Jain told The Hindu .
Among the projects that will be hit immediately are the fisheries ports at Kulai and Hejmady. The Rs. 165.6-crore project at Kulai was to see the Union government bearing Rs. 124.2 crore, and the government footing Rs. 8.28 crore (the rest of the amount was to come from the New Mangalore Port Trust). However, the State’s contribution will now go up to Rs. 41.4 crore.
The second phase of the Hejmady port was to be Rs. 122.59 crore, with the Union government giving Rs. 91.94 crore and the State arranging for the rest. Now, the State’s share goes up to Rs. 73.55 crore.
M.D. Prasad, Deputy Director, Fisheries Department, said even the proposals to dredge at Kodi Bengre may have to be revised due to the additional cost burden.
With each project taking up to three years for approval from the Ministry of Environment and Forests, the State government cannot account for the inflation in project cost, said Mr. Jain.
“We can’t afford all of this. Most of central excise goes to the Union government and not us. In three years, the project costs may go up by more than Rs. 10 crore. The State will again have to fund that,” said the Minister.
He said the State government had sent a plea to reintroduce the old norm of funding to Minister of Agriculture Radha Mohan Singh.
“The Minister expressed helplessness. Effectively, these projects are now stalled,” said Mr. Jain.
