The Cochin Chamber of Commerce and Industry has called upon the Cochin Port Trust (CPT) to formulate a “business-friendly land policy” in the wake of what it called a slump in business on Willingdon Island.
Chamber president C.S. Kartha said poor business had forced commercial banks to wind up operations on the island.
“We understand this is mainly due to the slump in business on the island. The chamber would like to attribute the phenomenon to the unfavourable business climate prevailing on the island,” he added.
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He said the Tariff Authority for Major Ports had recently increased the lease rate for land on the island from Rs.3,27,204 per acre a year to Rs.9,00,000, adding that it was one of the possible reasons for the slump in business in the area leased out by the CPT.
According to the Cochin Port Leaseholders’ Association, several banks operating from the island are planning to shift to nearby areas.
The association felt it indirectly pointed to the decline in business on the island.
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A statement issued by it said that though it appreciated the efforts of the CPT to attract large companies to the port area, it was opposed to the high lease rate.
Mr. Kartha said the Shipping Ministry’s Land Use Policy-2014 denied companies with large areas permission to sublease their leased land, which had been allowed till 2012.
This has forced them to move out of the island, he added.
No renewal of leases
The chamber’s grouse is that over the past three years, the CPT has not renewed leases for companies whose lease period has expired.
Mr. Kartha claimed that around 60 companies had terminated operations since 2012 and had moved to Ernakulam, Thoppumpady, and Thevara.
CPT requested to formulate a ‘business-friendly land policy’ to stop slump in trade