Reiterating its earlier order, the Shipping Ministry on Friday instructed the Kolkata Port Trust (KoPT) to immediately initiate an “open and transparent auction process” for on-shore cargo handling.
A probe committee had been appointed last week to look into allegations of violations in revenue-sharing and appointments of on-shore cargo-handling agents in all major ports.
The Ministry has asked the KoPT to file a “compliance report” within the next two weeks.
Meanwhile, the Ministry has dissolved the all-powerful Trustee Board of the KoPT. Similar action has been initiated against all 12 major ports in the country, Ministry sources told The Hindu .
In June, the Ministry’s vigilance wing had written to the ports raising questions on the alleged loss of thousands of crores following the arbitrary appointment of cargo-handlers. A week after The Hindu reported on the issue, the Ministry has sought to initiate an auction process to collect royalty. In a letter (copy of which is with The Hindu ) issued on July 8, the Ministry said: “Ministry, vide letter dated 13.06.2013, had asked Kolkata port to formulate a scheme for collection of royalty/user fee from cargo handling agents based on an open and transparent auction process and the detailed justification of the projected amounts to be received, the timing of the levy, the modalities of collection and its utilization should be placed in the Board to operationalize the scheme expeditiously.”
The letter, addressed to the KoPT Chairman, reminded the port authorities that a similar letter was issued in June last year. In the 2013 letter, the Ministry had asked the port authorities to “formulate a scheme for collection of royalty/user fee from cargo handling agents based on an open and transparent auction policy.”
The letter was issued only after the KoPT sought permission to levy “royalty/user fees on cargo handling agents in Haldia Dock Complex”. However, the process of levying fee and appointment of the agents was later questioned by Gujarat M.P. Mansukhbhai Vasava of the BJP. Mr. Vasava had alleged earlier in a letter to the PMO that flawed tendering and appointments of cargo handling agents in the shore over several years had cost the country’s port authorities Rs. 8 lakh crore.
