Kochi port authority fears a full-blown financial crisis despite improved business during 2014-15 as payment dues are pending and cost of maintenance dredging is on the rise.
Pension payment
The port authority had said there was “a reasonable turn-around” during 2014-15. At the same time, withdrawals from Pension Fund Trust at the rate of about Rs. 10 crore a month to meet pension payment may be the straw that breaks the camel’s back.
Pension outgo was Rs. 11.19 crore for March and Pension Fund Trust with LIC is Rs. 108 crore now.
The Port Trust’s pension burden has been marginally lightened with a decision by the Board of Trustees in August last year to invest 50 per cent of the land lease premium in the pension fund corpus with LIC. A sum of Rs 7.30 crore had been transferred to the corpus during 2014-15
Present dues
The port’s present dues include over Rs. 33 crore to Dredging Corporation of India for maintenance dredging and about Rs. 20 crore to Mumbai Port Trust on a loan that was availed by the port authority here.
The port’s current financial situation gets grimmer with no help available so far from the Union government. The port authority’s request for reimbursement of Rs. 168 crore on account of revenue loss from concessions extended on vessel-related charges for mainline vessel, has not received a positive reply so far. The request was made in February this year.
The port has also requested the Centre to take a decision on sharing of maintenance dredging charges.
The request has been that the Defence Ministry share 50 per cent of the cost of maintenance dredging on shipping channels as the Indian Navy and Coast Guard vessels account for 46 per cent of the traffic in the channels.
The port’s current financial situation gets grimmer with no help available so far from the Union government.
